Forex Previews

RBA meets; might struggle to stay neutral – Forex News Preview

Posted on March 29, 2019 at 2:12 pm GMT

The Reserve Bank of Australia made a major shift in policy in February by signalling that a rate cut was just as likely as a rate hike, abandoning its long-held tightening bias. However, investors have gone a step further and are pricing a 25-basis point reduction in the cash rate by August. With recent economic data suggesting the RBA’s recently downgraded growth forecasts are already looking overoptimistic, the RBA will have a hard time maintaining its current neutral stance and [..]

Week Ahead – RBA to mull dovish shift; resilient dollar eyes US jobs report

Posted on March 29, 2019 at 1:19 pm GMT

Bond markets will remain on edge in the coming week as the Reserve Bank of Australia could become the next central bank to switch to a dovish stance and possibly amplify the flight to safety, which has sent sovereign bond yields plummeting. Another catalyst for market volatility could come from the US jobs report, which has the capacity to either reverse or extend the rally in bond prices. There will be no shortage of US data with plenty of other [..]

US retail sales and ISM manufacturing PMI eyed amid slowdown fears – Forex News Preview

Posted on March 29, 2019 at 11:03 am GMT

Following the inversion of the US yield curve in the past week, retail sales figures and the ISM manufacturing PMI will be attracting attention on Monday as recession fears mount. The retail sales data are due at 13:30 GMT, while the ISM manufacturing gauge will be released slightly later at 15:00 GMT. With the US dollar’s declines so far being fairly limited after the Fed hit the pause button on further rate hikes, the greenback could be susceptible to downside [..]

US core PCE inflation to reinforce Fed’s patience – Forex News Preview

Posted on March 28, 2019 at 2:49 pm GMT

Fed chairman, Jerome Powell, said at his press conference following the March FOMC policy meeting that as long as inflation holds close to the target the central bank has room to remain “patient”. The core PCE price index delivered on Friday at 1230 GMT is expected to support Powel’s comments, while personal consumption and personal income readings published alongside price figures could restore some optimism for the US economy. The core PCE index, the Fed’s most favorite inflation measure, is [..]

RBNZ to stand pat on interest rates as economic prospects turn gloomier – Forex News Preview

Posted on March 26, 2019 at 5:20 pm GMT

The Reserve Bank of New Zealand (RBNZ) is holding its policy meeting on Wednesday at 0100 GMT but once again policymakers are widely expected to stay on the sidelines over increasing evidence that a global growth slowdown may be in progress. Last week, Q4 GDP growth figures out of New Zealand arrived higher at 0.6% in line with forecasts and twice the Q3 reading of 0.3%. The figure, however, missed RBNZ’s own estimate of 0.8%, while by surprise, the yearly gauge weakened to a [..]

Week ahead – RBNZ meets, trade talks resume, and more Brexit in store

Posted on March 22, 2019 at 2:35 pm GMT

After a hectic week that saw the Fed officially abandon its rate-hike plans for this year and several developments in the Brexit saga, things could quiet down a little. The only major central bank to meet next week will be the Reserve Bank of New Zealand (RBNZ), while in the political arena, all eyes will remain on the UK as another Brexit vote could be held in Parliament. On the trade front, high-level talks will resume in Beijing. Brexit squarely [..]

Canadian inflation and retail sales next to move the loonie – Forex News Preview

Posted on March 21, 2019 at 6:24 pm GMT

Following softer GDP growth prints and a more cautious monetary policy meeting by the Bank of Canada earlier this month, CPI inflation readings for the month of February will be next in line to drive the loonie on Friday at 1230 GMT. During the month, consumer prices are said to have risen faster than previously but year-on-year inflation is expected to have stalled, giving another reason for the central bank to stay on the sidelines amid an increasingly uncertain future. [..]

Eurozone PMIs could dictate euro’s near-term path – Forex News Preview

Posted on March 21, 2019 at 2:16 pm GMT

The Eurozone will be on the receiving end of preliminary PMIs for March on Friday, at 09:00 GMT. Economic growth has slowed drastically lately, leading the ECB to redeploy its ‘shock and awe’ tactics, and push back the timing of its first planned rate increase. Against this backdrop, these data could prove crucial for the euro, as they will provide an early glimpse of how the bloc’s economy ended Q1. The euro area lost considerable momentum in recent quarters, with [..]

Australian jobs data to drive odds for more stimulus – Forex News Preview

Posted on March 20, 2019 at 3:52 pm GMT

Australian employment figures will be carefully watched on Thursday at 0030 GMT as the central bank keeps relying on a tighter labor market to cushion the damage from a tumbling housing market. The consensus however is for slower jobs growth in February and a steady unemployment rate, a piece of evidence that monetary stimulus might still be necessary to support the economy. The Australian Bureau of Statistics is expected to reveal that the number of employees during the previous month increased softly by 14k compared [..]

New Zealand’s GDP next for the kiwi as RBNZ meeting nears – Forex News Preview

Posted on March 20, 2019 at 1:52 pm GMT

The next focal point for the kiwi dollar will be New Zealand’s GDP for Q4, due out on Wednesday at 21:45 GMT. Forecasts point to a pickup in growth, but even if that projection is met, it would still fall short of the RBNZ’s own forecasts. In isolation, this would argue for a slightly more cautious tone when the central bank meets again next week, which represents a risk for the kiwi. Economic growth is forecast to have picked up [..]

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