Forex Previews

Week Ahead – UK inflation, Japanese trade data among week’s important releases; Party Congress eyed in China

Posted on October 13, 2017 at 3:09 pm GMT

Next week’s economic releases, which includes UK inflation figures, can determine the future path of monetary policy for major economies, while political events, such China’s five-yearly Communist Party Congress commencing on Wednesday, perhaps have the capacity to steer developments for the years to come. Chinese Party Congress, Japanese trade data and elections further ahead and Australian employment to be closely watched Data on producer as well as on consumer prices for the month of September will be released out of [..]

Week Ahead – US retail sales, inflation and Fed minutes in focus in quiet data week

Posted on October 6, 2017 at 2:36 pm GMT

In a relatively light calendar week, US economic indicators will be at the forefront, along with data out of China, the Eurozone and the United Kingdom. Inflation and retail sales numbers will be the highlights coming out of the United States, while industrial output and trade data will be the focus in non-US markets. The Federal Reserve will also be making headlines as it publishes its September meeting minutes and more Fed officials make public appearances. China releases trade data [..]

Forex News – UK services PMI lifts pound off 3-week lows but growth lags Eurozone

Posted on October 4, 2017 at 11:30 am GMT

Manufacturing and services PMI released in the UK this week indicate the British economy continues to expand at a moderate pace, easing concerns of a sharper slowdown or a recession as the Brexit uncertainty bites on growth. However, when put against the backdrop of a weaker sterling and accelerating growth elsewhere in the world, notably the Eurozone, recent UK economic data leaves much to be desired. Data out on Monday showed the IHS Markit/CIPS manufacturing PMI eased to 55.9 in [..]

Forex News – Euro and pound underperform on heightened political worries

Posted on October 2, 2017 at 3:10 pm GMT

Just a week after an indecisive general election outcome in Germany threatened to derail the euro rally, a separatist vote in Spain’s Catalonia region on Sunday has further dampened sentiment for the single currency at the start of trading in the fourth quarter. The pound has also started the new quarter on a weak note as uncertainty about the UK’s Brexit strategy and doubts about Theresa May’s fragile government have pulled sterling below the key $1.33 level. An attempt by [..]

Week Ahead – US jobs report and ISM PMIs eyed as dollar rallies again; RBA meets

Posted on September 29, 2017 at 3:08 pm GMT

The US dollar just had its most positive week of 2017, driven by firming expectations of a December rate hike. Data out of the US next week will therefore be watched very carefully for further evidence supporting this view. Also coming under the limelight next week is the Reserve Bank of Australia, which meets for a scheduled monetary policy meeting, while Canadian employment figures, ECB meeting minutes, UK PMIs and the Bank of Japan’s Tankan survey will too be watched [..]

Forex News – Kiwi slides amid political uncertainty as parties haggle out coalition deal

Posted on September 26, 2017 at 2:54 pm GMT

The New Zealand dollar has slid by almost 2% over the past two days as an inconclusive election result has opened the prospect of weeks of uncertainty as the main political parties attempt to form a coalition government. Saturday’s general election in New Zealand failed to give the ruling National Party the majority they were hoping for, instead losing three seats in the preliminary results, while the Labour opposition party gained 13 seats, leaving the New Zealand First party holding [..]

Forex News – German election surprise weighs on euro

Posted on September 25, 2017 at 12:28 pm GMT

Despite Chancellor Angela Merkel leading federal elections on Sunday, it was rather a losing game for her CDU/CSU party as it failed to earn enough votes to form a government. Besides that, bad news arose also after the SDP party, which is currently a coalition partner to CDU, stated that it would head into opposition, leaving Merkel’s party no choice other than to seek partnership with rivals who have different views on EU policies. This brought doubts about further EU integration and consequently pushed the euro below [..]

Week Ahead – US data and Fed speakers to dominate; limited risk seen from German elections

Posted on September 22, 2017 at 3:59 pm GMT

Election results from Germany and New Zealand will occupy market headlines at the start of the trading week, assuming there is no fresh escalation of geopolitical tensions by North Korea. US economic indicators will dominate much of the week, but Japanese and Eurozone inflation data and the Reserve Bank of New Zealand’s monetary policy meeting will also be in focus. The Federal Reserve will also be attracting headlines as several policymakers hit the podium. Few surprises expected from German election [..]

Forex News – Jump in UK retail sales adds to rate hike expectations; pound tests $1.36 again

Posted on September 20, 2017 at 10:43 am GMT

After a notable slowdown at the end of 2016 and start of 2017, British retail sales are showing some signs of recovery, even as consumers continue to feel the pinch from falling real incomes. The volume of retail sales jumped by 1% month-on-month in August, the most in four months and surpassing expectations of 0.2%. On a 12-month basis, retail sales rose by 2.4%, beating expectations of 1.1%. Adding to the upbeat data were an upward revision to the prior [..]

Week Ahead – FOMC: balance sheet announcement and rate projections eyed; BoJ to stand pat

Posted on September 15, 2017 at 2:59 pm GMT

The Federal Reserve is expected to make its long-awaited announcement on its balance sheet reduction plan next week, though investors will probably be more interested in the FOMC’s latest dot plot chart. The Bank of Japan also holds a monetary policy meeting but it will likely be a less exciting event than the Fed’s. On the data front, Eurozone flash PMIs, UK retail sales, Canadian inflation and New Zealand GDP will be the highlights. Eurozone data unlikely to shift euro [..]

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