Forex Previews

Week Ahead – BoJ meets amid normalization talk; US tax vote the main focal point

Posted on December 15, 2017 at 4:25 pm GMT

Central bank activity will continue next week with policy meetings of the Bank of Japan and Sweden’s Riksbank. It will be a relatively quieter one though for economic indicators, except in the United States, which will see several big data releases, including personal consumption expenditure figures, housing numbers and durable goods. But happenings in Capitol Hill could once again attract more attention as Congress votes on the final version of the tax bill. No change expected from Bank of Japan [..]

BoJ tankan survey attracting interest; yen in focus – Forex News Preview

Posted on December 14, 2017 at 3:29 pm GMT

The Bank of Japan’s fourth quarter tankan survey is due at 2350 GMT on Thursday. Big manufacturers’ confidence in business conditions in Japan stood at a decade high in the third quarter, with fourth quarter projections indicating that positive momentum is to be maintained. The Tankan big manufacturers index is expected to come in at 24 in Q4, reflecting its fifth consecutive quarterly rise and standing at its highest in 11 years. This compares to Q3’s 22. Strong demand from [..]

UK retailers wait for Christmas, but downside risks remain in the background – Forex News Preview

Posted on December 13, 2017 at 4:33 pm GMT

Two days ago, the credit card company Visa said that Black Friday’s sales failed to boost British spending in November, while consumers paid less on Christmas traveling and on new vehicles, sending the inflation-adjusted Visa consumer spending index down by 0.9% y/y. Even if November’s decline was softer than October’s when the index tumbled by 2.1%, the company claimed that UK consumption is “still on track for its worst annual performance in five years”. On Thursday, however, the Office for National Statistics will [..]

Euro and pound at risk from surprises as ECB and BoE meetings seen as non-events – Forex News Preview

Posted on December 13, 2017 at 4:12 pm GMT

Monetary policy meetings by the European Central Bank and the Bank of England this week have had their limelight stolen by the US Federal Reserve, which is expected to move on rates while no action is anticipated from the ECB and the BoE. Both central banks took historic decisions at their last respective meetings, with the ECB halving its monthly asset purchases from January 2018 and the BoE raising its benchmark rate by 25 basis points to 0.50% – the [..]

Chinese urban investment, industrial output and retail sales in focus; aussie also eyed – Forex News Preview

Posted on December 13, 2017 at 3:37 pm GMT

China will see the release of figures on November fixed asset investment, industrial production and retail sales on Thursday at 0200 GMT. The data are not just important for the world’s second largest economy, but also Australia, which has China as its major exports destination. The annual pace of growth for fixed asset investment in urban areas is expected to stand at 7.2%, reflecting a minor slowdown from October’s respective rate of 7.3%. November’s industrial output is anticipated to grow [..]

Fed to raise rates but dollar eyes FOMC forecasts – Forex News Preview

Posted on December 13, 2017 at 10:14 am GMT

The Federal Open Market Committee is widely expected to raise interest rates for the third time this year and for the fifth time since the end of 2015 on Wednesday. But what seems to matter the most to investors regarding the outcome of the meeting, is the update on the country’s economic outlook and the speed of the delivery of stimulus reduction in the upcoming years. However, investors are already having doubts on future rate increases as recent data on average earnings surprised to the downside. According to the [..]

UK inflation expected to remain at multi-year high; implications for BoE and sterling – Forex News Preview

Posted on December 11, 2017 at 3:27 pm GMT

The UK will see the release of November inflation figures at 0930 GMT on Tuesday. Annual inflation is expected to grow by 3.0%, the same more-than-five-year-high pace that was recorded in October and September. The pace of inflation has implications for the rate hike path that is to be implemented by the Bank of England. Month-on-month, CPI is anticipated to have grown by 0.2% in November, exceeding the 0.1% pace that was recorded in October, while the 3.0% y/y rate [..]

Week Ahead – Fed to raise rates in busy week for central banks; EU summit decides on Brexit

Posted on December 8, 2017 at 3:41 pm GMT

Numerous central banks are scheduled to meet to set monetary policy next week. This includes the Federal Reserve, probably the world’s most closely watched central bank. It is also the one expected to make a move in the direction of policy normalization. Beyond this, major economies will see the release of important data, the UK being one of them with releases on inflation, wage growth and retail sales being eagerly awaited. In politics, the US tax story and the EU’s [..]

Could Americans see higher wages further ahead? – Forex Market Preview

Posted on December 7, 2017 at 4:34 pm GMT

Markets are widely expecting the Fed to finish the year with a third-rate hike in December as the US economy grows above expectations and the unemployment rate is currently at the lowest tracked since 2000. Hence, the NFP report released this Friday is less likely to change the Fed’s mindset at next week’s policy meeting. However, what could be worthy of attention are the wage growth numbers which policymakers are closely watching to appraise inflationary pressures and thus whether they are on the right path [..]

Bank of Canada decides next on rates; expected to stand pat – Forex Market Preview

Posted on December 5, 2017 at 4:53 pm GMT

Next on the list of central bank policy meetings is the Bank of Canada which is expected to follow its Australian counterparts and keep interest rates on hold at 1.0% at its last rate-decision for 2017 on Wednesday. Although the economy seems to be approaching full capacity conditions, the central bank is likely to maintain monetary stimulus for the moment as recent data indicated that the economy is growing at a slower pace, while inflation is still trending far below the central bank’s target. Last [..]

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