Forex Previews

Fed likely to skip QE boost, may adjust composition and forward guidance – Forex News Preview

Posted on December 15, 2020 at 2:37 pm GMT

The Federal Open Market Committee (FOMC) begins its two-day policy meeting on Tuesday, with a decision expected on Wednesday at 19:00 GMT. Federal Reserve Chair Jerome Powell will give his last post-meeting press briefing of the year 30 minutes later. After a tumultuous year that saw an unprecedented amount of central bank intervention globally, Powell may draw 2020 to a close with one final dose of stimulus to steer the bumpy US recovery through stormy waters. But with investors betting [..]

Eyes on Australian employment report after flash PMIs; aussie hits 30-month high – Forex News Preview

Posted on December 15, 2020 at 1:05 pm GMT

Australia’s employment report for November is likely to be in the spotlight on Thursday at 0030 GMT after the flash PMIs figures on Tuesday, 22:00 GMT. In December’s Reserve Bank of Australia’s (RBA) policy meeting, the minutes showed its Board feared a protracted period of unemployment lay ahead and rectifying that would be a priority. Nevertheless, the aussie continues to move higher against the US dollar but may soon need a boost for stronger bullish movements. Unemployment predicted to remain unchanged; flash PMIs [..]

Week Ahead – Fed could under-deliver as others to sit out; flash PMIs may test market optimism

Posted on December 11, 2020 at 12:02 pm GMT

Markets will go into high gear in the coming week as a jam-packed schedule looks sure to inject plenty of excitement before traders disappear for the festive period. The Federal Reserve will be headlining the week as speculation is rife about whether or not more stimulus is on the way. But there’s less uncertainty about the SNB, Bank of England and Bank of Japan meetings as a major shift in policy is not anticipated from any of them. Should central [..]

UK recovery stumbles as no-deal Brexit risks spike; pound oblivious – Forex News Preview

Posted on December 9, 2020 at 2:35 pm GMT

Growth data out of the United Kingdom will kick off Thursday’s European session at 07:00 GMT when traders are likely to wake up to fresh Brexit headlines. Prime Minister Boris Johnson is due to travel to Brussels later today to try and salvage a post-Brexit trade agreement with the European Union, with only three weeks to go until the end of the transition period. He is expected to hold talks with European Commission President Ursula von der Leyen over dinner [..]

ECB meeting: Sinking the euro won’t be easy – Forex News Preview

Posted on December 9, 2020 at 1:53 pm GMT

The European Central Bank will conclude its meeting at 12:45 GMT Thursday. Markets widely expect an easing package of around €500bn in QE purchases, likely complemented by more ultra-generous loans to banks. Yet, this move has already been telegraphed and priced in, so if policymakers want to sink the supercharged euro, they need to deliver something larger – which may be difficult. In the bigger picture, the euro will be driven mostly by Brexit and the US stimulus game. Houston, [..]

Bank of Canada policy preview: The calm after the storm – Forex News Preview

Posted on December 8, 2020 at 3:54 pm GMT

The Bank of Canada will hold its last policy meeting before the year end on Wednesday at 14:00 GMT and markets are almost certain that no shift will take place as growing post-Covid prospects are outweighing the current virus resurgence. Should the Bank adopt a more optimistic tone, the Canadian dollar may seek fresh highs. No pressure to ease policy Markets are in a festive mood, celebrating the promising vaccine news that is highly projected to end the health crisis and [..]

Week Ahead – Can the ECB clip the euro’s wings?

Posted on December 4, 2020 at 12:54 pm GMT

It will be another action-packed week in global markets, with two central bank meetings, a potential US stimulus agreement, and a flurry of economic data. The European Central Bank is certain to shower investors with more liquidity. Yet, this move has already been telegraphed and priced in, so if policymakers want to sink the supercharged euro, they need to over-deliver. The political arena will continue to excite as well, with the Brexit talks now in their final stage. All markets [..]

Fed minutes and slowing consumption may pave way for December easing – Forex News Preview

Posted on December 4, 2020 at 9:00 am GMT

Personal income and spending numbers will be the highlight of the data flurry out of the United States on Wednesday (15:00 GMT), before investors turn their attention to the minutes of the Federal Reserve’s November policy meeting at 19:00 GMT. Rising virus restrictions across the US have dented the short-term outlook and a soft set of numbers would further pile pressure on the Fed to do more. The minutes might offer some clues as to whether monetary easing is forthcoming [..]

China trade data to underscore strengthening recovery – Forex News Preview

Posted on December 3, 2020 at 1:21 pm GMT

As markets grapple with the real threat of escalating virus cases derailing the global economic recovery and the news about vaccines, the risk-sensitive Australian dollar will keep an eye on the November China trade data on Monday. These data would be one of the main highlights for traders next week as US-China relations might come back into focus after Joe Biden’s election as the new US President. China’s imports and exports may rise further China’s trade surplus rose to $58.44 billion in October [..]

NFP report could flag slowing jobs recovery; may accelerate dollar slide – Forex News Preview

Posted on December 2, 2020 at 2:18 pm GMT

The November nonfarm payrolls report will take centre stage on Friday (13:30 GMT) as cracks begin to appear in America’s economic recovery from the pandemic. If recent weekly jobless claims are any indication, the US labour market slowed notably during November. An expected cooling in jobs growth is likely to add pressure on the Federal Reserve to inject more monetary stimulus. But as the dollar goes into freefall in anticipation of a December move, are investors underestimating the risk of [..]

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