Forex Previews

Forex News – Preview – Average earnings likely to dominate attention out of Friday’s jobs report; Fed and tax reforms also eyed

Posted on November 1, 2017 at 2:52 pm GMT

Friday’s job report is undoubtedly the week’s most significant data release out of the US. However, ahead of that, other events also have the capacity to steer the greenback in either direction. Nonfarm payrolls are projected to have increased by 312k in October. This is in stark contrast to September’s decline by 33k which marked the first time since 2010 that the economy experienced a reduction in positions. However, one should acknowledge that last month’s fall does not point to [..]

Forex News – Preview – Markets poised for a dovish rate hike by Bank of England

Posted on October 31, 2017 at 4:07 pm GMT

The pound has been on an uptrend for much of 2017, led by a weaker dollar in the first half and by expectations of a UK rate rise in the second half. Its high of the year and post Brexit peak of $1.3656 was reached soon after the Bank of England’s September policy meeting when MPC members signalled “some withdrawal of monetary stimulus is likely to be appropriate over the coming months”. However, recent communication by some policymakers has been [..]

Forex News – Preview – Fed to hold rates; no surprises expected from November FOMC meeting

Posted on October 31, 2017 at 2:05 pm GMT

Policymakers at the US Federal Reserve begin a two-day monetary policy meeting today with an announcement expected at 18:00 GMT on Wednesday. With no move in rates anticipated at the November meeting and no accompanying press conference, the event is unlikely to receive much reaction in financial markets, especially as there is a bigger focus at the moment and that is who will be replacing Chair Janet Yellen when her term expires in February 2018. President Trump is due to [..]

Forex News – Preview – BoJ expected to stand pat; weaker inflation outlook could hurt the yen

Posted on October 30, 2017 at 2:45 pm GMT

The Bank of Japan will be tomorrow completing its two-day meeting on monetary policy. With inflation remaining well below the central bank’s 2% target – headline and core inflation grew by 0.7% y/y in September – the BoJ is not expected to reverse course from its ultra-easy monetary policy stance. Market participants anticipate the BoJ to maintain the 0.1% fee charged on a portion of commercial banks’ reserves held with the central bank as well as keep its target for [..]

Week Ahead – Fed and BoJ meet but all eyes on BoE; US jobs also in focus

Posted on October 27, 2017 at 3:28 pm GMT

Central bank meetings will dominate the next seven days as the Bank of England, the Bank of Japan and the US Federal Reserve all hold their policy meetings. It will be a big week for economic indicators as well, as the Eurozone releases preliminary GDP figures and the October jobs report is out in the United States. Australian, New Zealand and Canadian data eyed after aussie, kiwi and loonie take a battering Political concerns in Australia and New Zealand have [..]

Forex News – Preview – US third quarter GDP dominates attention; durable goods orders spur hopes for data beat

Posted on October 26, 2017 at 2:55 pm GMT

The advance estimate of third quarter GDP growth in the US will be released tomorrow at 1230 GMT with forecasts projecting a slowdown from the second quarter’s 3.1% expansion on an annualized basis to 2.5%. Economic activity, as reflected by the rise in Gross Domestic Product, grew by 1.2% in the first quarter of the year. Expectations for slower growth relative to the preceding quarter are in large part based on the fact that the world’s largest economy suffered the [..]

Week Ahead – ECB tapering decision looms; BoC also meets; UK and US GDP eyed

Posted on October 20, 2017 at 4:13 pm GMT

The European Central Bank will take centre stage next week as it announces its long-awaited decision to scale back its asset purchase program. Central banks in Canada, Sweden and Norway will also be holding their monetary policy meetings. On the data front, the first estimate of third quarter growth in the UK and the US will be in focus. Other major data will include Japanese and Australian inflation and Eurozone PMIs. Japan’s Abe’s election gamble likely to pay off Recent [..]

Forex News – Preview – Canadian inflation and retail sales data eyed before BoC meeting

Posted on October 19, 2017 at 12:35 pm GMT

Inflation and retail sales numbers out of Canada on Friday will be scrutinized for clues to a possible year-end rate hike by the Bank of Canada, following recent remarks from BoC Governor Stephen Poloz that suggested a pause after two consecutive hikes. The Canadian dollar has rallied by over 7% against its US counterpart this year as growth in the country has exceeded expectations, prompting the central bank to raise rates by a total of 50 basis points to 1.00%. [..]

Forex News – UK data adds pressure for rate hike but less hawkish BoE raises scepticism about willingness

Posted on October 18, 2017 at 2:45 pm GMT

Inflation in the United Kingdom rose to the highest in 5½ years in September, reaching 3% year-on-year, data out on Tuesday revealed. The figure is one full percentage point above the Bank of England’s target of 2%, adding pressure on policymakers to reign in the build-up in prices being generated by sterling’s depreciation following the Brexit referendum. Labour market data released today further supported the case for a rate hike as wage growth came in above expectations. Average weekly earnings [..]

Forex News – UK inflation gives way for rate hike; pound posts short-lived gains on dovish BOE remarks

Posted on October 17, 2017 at 2:16 pm GMT

UK inflation in September rose to a 5 ½ -year high according to the Office for National Statistics, gaining one percentage point above the BOE’s 2% target and igniting speculation that a rate hike could emerge in the BOE’s November meeting. However, the pound could not sustain the uptick triggered by the data, giving away its gains, after the BOE chief and deputy governor held a dovish stance during parliamentary testimony. Headline consumer prices matched expectations, increasing by 3.0% y/y in September but remaining close [..]

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