Forex Previews

Bank of Canada said to deliver a rate hike but risks hang – Forex News Preview

Posted on January 16, 2018 at 4:57 pm GMT

Just two weeks after the start of the new year, the Bank of Canada will be the first in line to decide on monetary policy and as forecasts suggest the central bank will likely go with another rate hike. Some could say, though, that now is not the best time for Canada to welcome higher rates given the complicated situation of the NAFTA talks and the country’s overloaded household debt. But this is not the big question. Instead, investors wonder [..]

China growth to ease in Q4 after strong year; further slowdown expected in 2018 – Forex News Preview

Posted on January 16, 2018 at 3:53 pm GMT

China’s economy is expected to slow slightly in the fourth quarter of 2017 as government measures to curb pollution and deleverage highly indebted corporations and regional authorities take hold. The slowdown is expected to continue into 2018 as the government winds down the fiscal stimulus that helped 2017 growth beat its own target of 6.5%. The GDP data due on Thursday is forecast to show the economy growing at an annual rate of 6.7% in the final three months of [..]

UK inflation forecast to ease a bit though remain comfortably above BoE target – Forex News Preview

Posted on January 15, 2018 at 10:52 am GMT

UK inflation figures for the month of December will be made public on Tuesday at 0930 GMT. Annual inflation is expected to grow by 3.0%, easing a bit from the near six-year high of 3.1% recorded in November, which given that it was by more than 1% above the Bank of England’s target for inflation of 2% meant that Governor Carney had to write a letter to the Chancellor of the Exchequer Philip Hammond to explain the overshoot. Month-on-month, December [..]

Week Ahead – Bank of Canada ponders raising rates again; Aussie eyes jobs data and China GDP

Posted on January 12, 2018 at 5:08 pm GMT

The Canadian and Australian dollars will be in focus next week as the Bank of Canada holds its first monetary policy meeting of the year, while Australian employment and Chinese growth figures will test the aussie’s recent bull run. Other highlights will include inflation data out of the UK and the Eurozone. But the US will see a quieter week in terms of economic releases. China’s economy likely slowed in Q4 China will be the first major economy to report [..]

US CPI inflation and retail sales seen weaker in December – Forex News Preview

Posted on January 11, 2018 at 11:52 am GMT

Raising interest rates is what the Fed is highly anticipated to do in 2018 as part of its plan to tighten monetary policy. However, the timing and the speed of the rate adjustment remains in question as long as inflation shows little sign of accelerating towards the central bank’s target. On Friday, the Bureau of Labor Statistics will release data on consumer prices and the Census Bureau will publish figures on retail sales at 1330 GMT. Even though the former [..]

Australian Retail Sales – will it affect the aussie’s bullish rally?

Posted on January 10, 2018 at 4:12 pm GMT

The Australian dollar had a strong upside rally in the previous four weeks, driving the aussie/dollar pair to a new three-month high. A question is if the prices will continue to rise after the release of retail sales overnight and more importantly during the year as the Reserve Bank of Australia (RBA) remains concerned about consumption growth. Retail sales for November are forecasted to ease to 0.4% m/m from 0.5% the previous month. In October the indicator increased by 0.5% [..]

Chinese trade figures due; potential aussie reaction – Forex News Preview

Posted on January 10, 2018 at 4:07 pm GMT

Chinese trade data for the month of December are scheduled for release on Friday at 0445 GMT. Analysts forecast exports and imports to grow solidly, though at a softer pace relative to November, a month during which both figures stormed past expectations to expand by double digits on a yearly basis. Exports and imports are forecast to grow by 9.1% and 13.0% y/y respectively, down from 12.3% and 17.7% in November, while the trade surplus is anticipated to narrow to [..]

Chinese consumer inflation to inch up but producers could face softer costs- Forex News Preview

Posted on January 9, 2018 at 5:14 pm GMT

During the period 2012-2016 everyone was talking about the deflationary spiral in China, with those who are heavily dependent on Chinese imports blaming the world’s largest exporter for stealing inflationary pressures from them and therefore interrupting their monetary policy. But today, someone could say that China could be a gift for those who hope for inflation to pick up as growth in Chinese prices turned increasingly positive in 2017 and is expected to keep rising smoothly in the coming years [..]

UK industrial, manufacturing rebound expected to continue in November – Forex News Preview

Posted on January 9, 2018 at 11:27 am GMT

A weak pound and stronger global growth, particularly in the Eurozone, is driving up demand for British exports, which are boosting the UK’s manufacturing sector even as domestic demand falters amid the Brexit uncertainty. Industrial and manufacturing figures out on Wednesday are expected to show output picked up in November after stalling in October. Industrial production grew at an annual rate of 3.5% in October – the highest since December 2016, while manufacturing output was up 3.9% – also the [..]

Slew of Fed speakers have the capacity to affect dollar positioning – Forex News Preview

Posted on January 8, 2018 at 3:26 pm GMT

The dollar is in recovery mode on Monday after falling on Friday, recording its lowest since January 2 versus a basket of currencies and coming close to hitting a fresh 3½-month low. Dollar selling took place in the aftermath of December’s jobs report which showed the US economy adding notably fewer positions than analysts had expected. Despite earlier declines, the dollar managed to recover, finishing Friday’s trading higher, albeit only slightly so. Dollar bulls eventually taking control was attributed to [..]

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