Forex Previews

ECB minutes unlikely to deviate from recent language; euro capped by dovish path – Forex News Preview

Posted on July 11, 2018 at 2:40 pm GMT

The European Central Bank will publish the accounts of its June 13-14 monetary policy meeting on Thursday at 11:30 GMT, when details of the discussion to end the Bank’s massive asset purchase program (APP) will be revealed. While a decision on winding down the bond-buying program was not anticipated by many to come as early as the June meeting, the bigger surprise came from the ECB’s rate path forecast, with the first rate hike pushed out until after the summer [..]

US inflation to edge closer to 3% but unlikely to alter Fed policy – Forex News Preview

Posted on July 11, 2018 at 2:17 pm GMT

Consumer prices in the United States are expected to rise at the fastest pace in nearly 6½ years in June, maintaining the steady recovery in prices after a brief spell of deflation in 2015. After yet another muted wage growth figure in June, investors will be watching the CPI release on Thursday at 12:30 GMT for possible signs of an acceleration in consumer price inflation. While the Federal Reserve would likely overlook any temporary spike in inflation, the dollar could [..]

BoC to raise rates, forward guidance to drive the loonie – Forex News Preview

Posted on July 10, 2018 at 1:14 pm GMT

The Bank of Canada (BoC) is widely expected to raise interest rates when it announces its policy decision on Wednesday, at 1400 GMT. What is much more uncertain, however, is whether policymakers will also highlight their support for further hikes in the coming months amid a relatively strong domestic economy, or whether boiling trade tensions will lead them to downplay such expectations. On balance, the former scenario appears more likely, though it’s a pretty close call. Put simply, the [..]

UK data to point to May rebound in output; could seal August rate hike – Forex News Preview

Posted on July 9, 2018 at 1:49 pm GMT

As the pound enjoys a bounce on hopes of a soft Brexit, a flurry of data out of the UK on Tuesday could provide the currency with more reason for cheer if they confirm a rebound in growth in May. With a Bank of England policy meeting just three weeks away, the monthly growth data on industry, services and GDP, as well as on trade, will be watched closely at 8:30 GMT for clues as to whether a rate hike [..]

Week Ahead – Loonie eyes BoC rate hike; UK starts publishing monthly GDP

Posted on July 6, 2018 at 12:39 pm GMT

A policy meeting by the Bank of Canada looks set to be the most exciting item on next week’s calendar as it will be a somewhat muted five days for economic indicators. US inflation will be the data highlight but the introduction of monthly GDP numbers by the UK’s statistics office may also attract quite a bit of attention. Meanwhile, oil traders will be eyeing the latest monthly reports by OPEC and the IEA to evaluate the impact of the [..]

US jobs report sidelined by trade frictions but wage data could still set dollar path – Forex News Preview

Posted on July 5, 2018 at 10:19 am GMT

The nonfarm payrolls report will be eagerly awaited on Friday at 12:30 GMT for the latest indications on the United States labour market. However, with Sino-US trade tensions running high and tariffs on $34 billion worth of Chinese imports and counter tariffs of similar value on US products due to come into effect the same day, the jobs report may fail to generate the usual amount of fanfare. That is not to say that any surprises to the data won’t [..]

Canadian jobs data due with Bank of Canada decision looming – Forex News Preview

Posted on July 5, 2018 at 9:07 am GMT

The Canadian employment report for June is due on Friday at 1230 GMT. The release will constitute the last major data print before the Bank of Canada (BoC) meets to decide on rates next week and is seen as having the capacity to shift expectations regarding the delivery of an interest rate increase. Besides that, NAFTA negotiations, another loonie driver, may receive new traction following the recently-completed Mexican elections. Canada’s economy is anticipated to have added 24k positions during June, which compares to [..]

Dollar eyes Fed minutes ahead of jobs report and tariffs – Forex News Preview

Posted on July 3, 2018 at 2:00 pm GMT

The Fed will release the minutes from its June policy meeting on Thursday, at 1800 GMT. Not only did policymakers raise interest rates for a second time this year at that gathering, they also revised higher their rate-path projections to signal a total of four hikes in 2018, from three previously. The minutes may shine a fresh light on how confident the Committee as a whole is on that prospect, with any conversation on trade frictions also attracting attention. The [..]

Sterling to seek support from UK services PMI as Brexit concerns mount – Forex News Preview

Posted on July 3, 2018 at 9:57 am GMT

The UK services PMI – a gauge of service sector activity – will be watched closely by investors on Wednesday at 8:30 GMT to assess the health of the UK economy. The report from IHS Markit/CIPS is expected to show growth in the dominant services sector holding steady in June. However, a solid reading is unlikely to provide much support for the pound, which has slumped to 8-month lows in recent days amid growing doubts about the UK government’s Brexit [..]

RBA meeting: Juggling risks – Forex News Preview

Posted on July 2, 2018 at 3:06 pm GMT

The Reserve Bank of Australia (RBA) will announce its rate decision on Tuesday, at 0430 GMT. With the Bank almost certain to make no changes to its policy, price action will be dictated by any changes in the phrasing of the accompanying statement. Recent price action suggests investors may be anticipating a more cautious stance. This implies that the risks surrounding the aussie’s reaction may be asymmetrical, with the expected concerned tone leading to a modest decline, but a more [..]

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