Forex Previews

Week Ahead – US inflation & retail sales and Chinese trade numbers among next week’s highlights

Posted on January 5, 2018 at 1:56 pm GMT

The coming week will feature numerous important releases that definitely have the potential to lead to notable movements in forex markets, though it will lack a release of the magnitude of the US nonfarm payrolls report that hit markets during this past week. Among the highlights in the coming days will be Chinese trade data, eurozone unemployment figures, UK manufacturing output and US inflation and retail sales. Quiet week in Australia with building approvals and retail sales gathering attention The [..]

Eurozone inflation: Will it determine the euro’s short-term bias? – Forex News Preview

Posted on January 4, 2018 at 11:40 am GMT

Eurozone’s preliminary inflation figures for December are due out on Friday at 10:00 GMT, and forecasts project both the headline and the core CPI rates to tick down. With inflation likely to continue undershooting the ECB’s target over the coming years, will the Bank maintain its current degree of stimulus beyond September? Inflation in the euro area has been subdued in recent years – and it’s expected to remain so for a while longer. According to the European Central Bank’s [..]

Nonfarm payroll report: American wage growth of most interest– Forex News Preview

Posted on January 4, 2018 at 9:44 am GMT

The chief economist at Moody’s Analytics Mark Zandi said that “it is a good time to be an American worker” given that the economy has been creating two million jobs each year for the last six years. The US labor market remained resilient, with the unemployment rate falling to multi-year lows in 2017, even after devastating hurricanes slammed Texas and Florida, leading to a period of weaker hiring. However, employment numbers are not what analysts are paying most attention to but instead wage inflation [..]

Week Ahead – Beleaguered dollar eyes first US jobs report of 2018; December PMIs in focus

Posted on December 28, 2017 at 4:32 pm GMT

Markets will begin to get back to normal in the first week of 2018 following the Christmas and New Year breaks. PMI surveys will dominate the economic calendar, but traders will likely be most looking forward to the US nonfarm payrolls report to inject much needed life into the lacklustre US dollar. The coming week will start a little early, on Sunday, as China releases the official manufacturing and non-manufacturing PMIs. The manufacturing PMI is forecast to ease slightly to [..]

Week Ahead – Japanese indicators to dominate quiet holiday week; US consumer confidence also in focus

Posted on December 22, 2017 at 2:26 pm GMT

The next seven days look set to be extremely quiet due to the shortened Christmas holiday week, with many markets closed on Monday and Tuesday. Japan and the United States will be the only major countries releasing data, though Australian private lending figures on Friday could also attract some attention. Volumes are expected to be thin as many traders will stay away from their desks and the year draws to a close. However, low volumes have a tendency to trigger [..]

Japanese inflation among releases having the capacity to spur yen positioning – Forex News Preview

Posted on December 22, 2017 at 1:59 pm GMT

Japan will see the release of November inflation figures on Monday at 2330 GMT. Core inflation, the measure targeted by the Bank of Japan, is expected to remain steady at 0.8% on an annual basis, well below the central bank’s target of 2.0%. Despite core CPI undershooting the BoJ’s target and being one of the reasons the bank decided in its latest meeting to maintain its ultra-loose monetary policy, a positive figure would reflect the 11th consecutive rise for the [..]

US PCE inflation not much of worry for dollar – Forex News Preview

Posted on December 21, 2017 at 4:12 pm GMT

The Fed expressed that it is planning to tighten monetary policy in the coming years even if inflation continues to undershoot its target. However, a surprising rise in the core PCE index on Friday might raise the odds of further rate hikes in the future and relief policymakers that the current monetary policy direction is the right one. This would also provide some support to the dollar. The US could be facing symptoms of a broken Philips curve, this being the theory that explains the inverse relationship between the unemployment rate and inflation. Although [..]

BOJ expected to stand pat but eyes on Kuroda – Forex News Preview

Posted on December 20, 2017 at 1:36 pm GMT

Under an ultra-easy monetary policy which aims to hold the 10-year bond yields around zero percent, the Japanese economy has indeed shown signs of recovery in several sectors this year. However, with inflation sharply undershooting the BOJ’s target, policymakers are less likely to change their monetary policy stance at the end of their two-day meeting on Thursday. Still, the latest speech by the BOJ governor signalled that a stimulus reduction is not ruled out in the coming years given that persisting negative rates could have adverse effects on [..]

New Zealand growth expected to reflect a slowdown; kiwi eyed – Forex News Preview

Posted on December 19, 2017 at 3:26 pm GMT

New Zealand’s third quarter GDP growth figures are due on Wednesday at 2145 GMT, with forecasts projecting a slowdown in the pace of expansion during the quarter. The kiwi will be in focus as slower growth has, among others, the capacity to postpone policy normalization plans by the Reserve Bank of New Zealand. Quarterly growth in Q3 is expected to stand at 0.5%. This compares to the preceding quarter’s 0.8%. Year-on-year, GDP is forecast to expand by 2.3% during the [..]

German IFO is expected to hold at a record high as euro remains under pressure – Forex News Preview

Posted on December 18, 2017 at 2:58 pm GMT

Germany will see the release of the IFO survey at 0900 GMT on Tuesday. The IFO business climate index surged to an all-time high of 117.5 in November from an upwardly revised 116.8 in the prior month. The euro is expected to remain neutral in such events as the bigger focus for investors is the ECB’s policy outlook. Market players are expecting the German IFO business climate index to inch up to 117.6 this month, which will be a fresh all-time high. [..]

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