Forex Previews

Not the best time to raise RBA rates– Forex News Preview

Posted on February 5, 2018 at 4:48 pm GMT

The Reserve Bank of Australia will meet for its first interest rate decision for 2018 on Tuesday but a rate hike will be probably off the table. Although the economy recorded solid growth and consumer and business surveys improved since December’s policy meeting, household spending remained a risk, while an appreciating currency signals that this is likely not the right moment to tighten monetary policy, at least this time. In the third quarter of 2017 private business and public investments [..]

Week Ahead – BoE, RBA and RBNZ meet: will FX moves influence monetary policy after strong rally?

Posted on February 2, 2018 at 12:22 pm GMT

Central bank meetings will dominate next week’s economic calendar as the Bank of England, the Reserve Bank of Australia and the Reserve Bank of New Zealand meet to set monetary policy. All three are expected to stand pat but surprises could be in store for the markets as policymakers adjust their outlook following recent developments pertaining to their economies and in forex markets. Economic data will not go amiss with most countries releasing monthly figures on trade and services PMIs. [..]

After Fed, dollar seeks additional reprieve from NFP report; higher wage growth eyed – Forex News Preview

Posted on February 1, 2018 at 10:51 am GMT

Even as US data continues to point to an upside risk to growth this year, the dollar has had a terrible start to 2018, falling by around 3.5% against a basket of currencies. A convincing sign that labour shortages are finally starting to push up wages could be the catalyst investors need to price in the possibility of three or more rate hikes by the Fed in 2018. Friday’s nonfarms payrolls report (due at 13:30 GMT) might go some way [..]

Chinese PMIs pose another risk to the Aussie – Forex News Preview

Posted on January 30, 2018 at 3:35 pm GMT

China’s official manufacturing and non-manufacturing PMIs for the month of January are both scheduled for release on Wednesday at 0100 GMT. According to forecasts, the manufacturing index is set to tick down, while the non-manufacturing print is anticipated to remain unchanged, albeit at a level consistent with healthy expansion in the sector. Even though a slight slowdown in manufacturing activity would normally be perceived as a discouraging development for the Chinese economy, this may not be the case this time around. The [..]

Fed meeting statement: dollar could rebound on “hawkish hold” – Forex News Preview

Posted on January 30, 2018 at 2:35 pm GMT

Tuesday sees the Federal Reserve’s Federal Open Market Committee (FOMC) commencing its two-day meeting on monetary policy, with a policy decision due on Wednesday at 1900 GMT. Markets widely expect rates to remain unchanged, though a delivery of a “hawkish hold” seems to increasingly be the view among analysts. Should this materialize, then the US currency is anticipated to post gains relative to other currencies. Indicative of the broadly held view that rates will remain on hold is the fact [..]

Eurozone GDP growth set to reach fresh highs, but inflation could weaken – Forex News Preview

Posted on January 29, 2018 at 4:55 pm GMT

The euro had a crazy rally last week, posting a weekly gain of 2.5% versus the dollar and touching $1.25 for the first time since December 2014. While this initially seemed to mirror the dollar’s, weakness emerging from US Treasury Secretary Steve Mnuchin’s currency talk-down, the ECB chief, Mario Draghi, attributed the euro’s strength partly to the block’s bold performance. This week, Tuesday’s preliminary GDP growth figures are said to highlight Eurozone’s robust recovery, whereas a day after, flash CPI estimates might show that inflation still lacks [..]

Will Australia’s inflation data nudge the RBA out of its lull? -Forex news preview

Posted on January 29, 2018 at 4:01 pm GMT

Australia’s inflation prints are due out on Wednesday at 00:30 GMT and expectations are for the CPI rate to re-enter the Reserve Bank of Australia’s (RBA) target band. Will this be enough to trigger an optimistic response by the Bank when it meets again next week, or are there more hurdles to be overcome before that happens? The Australian dollar has staged a spectacular run so far in 2018, gaining nearly 4% against its US counterpart, though the rally reflects [..]

US PCE inflation seen steady in December– Forex News Preview

Posted on January 29, 2018 at 10:13 am GMT

Just a day before the Fed starts its two-day monetary policy meeting, the Bureau of Economic analysis will release figures on the core personal consumption expenditure price index (PCE), the Fed’s most preferred inflation measure. However, the results are less likely to drive to a rate hike on Wednesday as markets are already pricing in a “no-change” rate decision. Still, any upside surprise in the data might generate hawkish feelings about the central bank’s appetite for tighter monetary policy before Jerome Powell replaces Janet [..]

Week Ahead – US jobs report and Fed to keep dollar in spotlight; Eurozone GDP also in focus

Posted on January 26, 2018 at 5:25 pm GMT

The economic calendar in the coming seven days will be a busier one with a slew of data releases and the Fed’s first monetary policy meeting of the year. The US employment report will be the data highlight of the week followed by the euro area’s preliminary GDP reading for the final quarter of 2017. PMI figures out of the UK and China, and Australian CPI numbers will also be important. Australian inflation to crawl into RBA’s target band The [..]

UK Q4 GDP growth figures poised to challenge sterling’s rally– Forex News Preview

Posted on January 25, 2018 at 4:33 pm GMT

Sterling is on track to post its best weekly performance against the dollar since September as the currency managed to gain 3.0% in just four days, flying from 1.3900 to 1.4327. Brexit optimism, the dollar’s weakness as well as stronger than expected UK economic indicators were among the catalysts that persuaded investors to increase their net-long positions in the market so far. However, the next challenge for the cable might come on Friday when the Office for National Statistics will release flash GDP growth estimates for [..]

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