Forex Previews

Week Ahead – Trading to wound down ahead of Easter; dollar to seek support from Fed speakers

Posted on March 23, 2018 at 3:42 pm GMT

After a busy week filled with central bank activity and political developments, there should be some restoration of calm in financial markets over the coming week as trading activity wounds down ahead of the Western Easter celebrations. Data releases out of the United States look set to dominate the calendar, with the core PCE price index for February likely to be the most closely watched item. Fed policymakers may steal the headlines however, as they return to the podium following [..]

Japanese inflation not yet at target and the yen is not helping – Forex News Preview

Posted on March 22, 2018 at 5:10 pm GMT

Inflation in Japan has still some way to run to reach the Bank of Japan’s price target and Friday’s consumer prices are likely to prove that once again. The core CPI, the BoJ’s preferred inflation measure, stood at 0.1% when the central bank decided to impose a negative-rate policy at the beginning of 2016 to incentivize banks and businesses to lend money and therefore increase inflationary pressures in the economy. But instead of seeing the core CPI rising at a faster pace, the measure dropped [..]

Canada’s CPIs and retail sales may help the loonie regain some poise – Forex News Preview

Posted on March 22, 2018 at 1:05 pm GMT

Canada will see the release of its inflation and retail sales data on Friday at 1230 GMT, with forecasts pointing to an acceleration in price pressures and a sharp rebound in consumer spending. While such prints would be pleasant news for the Bank of Canada (BoC) and could benefit the loonie, the currency’s broader direction will also depend to a large degree on how the NAFTA talks progress in the coming weeks. The BoC has gone to great lengths to [..]

Australia set to post another record on jobs growth but RBA could be indifferent – Forex News Preview

Posted on March 21, 2018 at 2:15 pm GMT

Australia will see the release of employment data this week on Thursday at 0030 GMT, with the figures expected to show that the Australian labor market is in a good shape. Analysts believe that the number of jobs created continued to rise in February, posting the longest streak of employment gains since the Australian Bureau of Statistics began its monthly series in 1978. But once again, this is not what aussie traders want to hear most. The path of the unemployment rate and [..]

Forex News Preview – Brexit transition deal gives BoE go-ahead for May rate hike but UK data poses dilemma

Posted on March 21, 2018 at 11:44 am GMT

Bets for a Bank of England rate hike in May received a major boost this week after the United Kingdom and the European Union reached a deal on a 21-month transition period that would come into effect when Britain officially leaves the bloc at the end of March 2019. The positive development is likely to sway BoE policymakers in favour of signalling a rate increase in May when they convene on Wednesday and Thursday for a two-day monetary policy meeting. [..]

Eurozone PMIs expected to point to further cooling of economic activity – Forex News Preview

Posted on March 21, 2018 at 10:22 am GMT

The eurozone will see the release of flash PMI figures for the month of March on Thursday at 0900 GMT. All three readings – for manufacturing, services, as well as the composite measure that blends the two sectors – are anticipated to slow down relative to recent releases, though still comfortably remain above the 50 threshold that separates sectoral expansion from contraction. March’s flash manufacturing PMI is projected to stand at 58.1, recording its third straight monthly decline. In February, [..]

RBNZ meeting: Will the song remain the same? – Forex News Preview

Posted on March 20, 2018 at 2:26 pm GMT

The Reserve Bank of New Zealand (RBNZ) will announce its rate decision on Wednesday at 2000 GMT, and policymakers are widely anticipated to stand pat. Given the lack of major developments recently, the Bank seems unlikely to alter its neutral tone, and the financial community appears to view this meeting as a “non-event”. With very few expecting the RBNZ to say anything new though, the Kiwi may be at risk as even small language changes could have a market impact, [..]

Fed widely expected to hike rates; forward guidance to move the dollar – Forex News Preview

Posted on March 20, 2018 at 10:05 am GMT

The Federal Reserve will be completing its two-day meeting on monetary policy on Wednesday, with an interest rate decision being made public at 1800 GMT. The world’s most powerful central bank is widely anticipated to deliver a quarter percentage point interest rate hike, with market focus falling on the Bank’s forward guidance. Moreover, this will be the first meeting that new Fed chief Jerome Powell will preside, something which perhaps renders his press conference following the decision all the more [..]

UK CPIs the first of several risk events for sterling this week – Forex News Preview

Posted on March 19, 2018 at 1:17 pm GMT

It is going to be a crucial week for the British pound, with a Bank of England (BoE) policy decision on Thursday and an EU summit that will determine whether the UK will finally obtain a transitional Brexit deal. Ahead of these events though, the UK will also release a raft of key economic data that could affect expectations around monetary policy, with the first on the list being the nation’s CPI figures for February, due out on Tuesday at [..]

Week Ahead – All eyes on FOMC projections; Pound in spotlight as UK data, BoE awaited

Posted on March 16, 2018 at 3:41 pm GMT

It will be a crucial week for the greenback and sterling next week as the Federal Reserve and Bank of England meet to decide on monetary policy. It will also be an important week for the UK in terms of data as inflation, jobs and retail sales figures are released. Employment numbers are expected out of Australia too and Canada will be reporting inflation and retail sales figures as well. In the Eurozone, the focus will be on the March [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms