Forex Previews

Week Ahead – US CPI; RBNZ meeting; OPEC/non-OPEC to monitor cuts

Posted on August 4, 2017 at 4:04 pm GMT

Next week will be calmer in terms of data releases relative to this one, though certain figures from major economies will definitely grab the markets participants’ attention. In terms of central bank meetings, the Reserve Bank of New Zealand will meet to set monetary policy, while oil prices may experience added volatility given that a meeting to monitor compliance with output cuts will be taking place in Abu Dhabi. RBNZ decision on monetary policy The Reserve Bank of New Zealand [..]

Forex News – Non-farm payrolls surprise to the upside; Dollar index hits above 93 key level

Posted on August 4, 2017 at 3:53 pm GMT

Following a dose of disappointing economic data out of the US with the most recent involving ISM non-manufacturing PMI released yesterday, the highly anticipated non-farm payrolls for the month of July took markets by surprise with the figures beating expectations. Consequently, the dollar surged and managed to break above the key level of 93 despite ongoing political turmoil around Trump’s administration. In July, 209,000 new positions were created in nonfarm sectors, a number that was below the previous mark of [..]

Forex News – Sterling tumbles as BoE keeps rates on hold, cuts growth forecasts

Posted on August 3, 2017 at 2:45 pm GMT

The Bank of England decided to keep rates unchanged at all-time lows as it completed its two-day meeting today. Despite the decision not deviating from expectations, sterling suffered sizable losses relative to majors including the dollar and the euro as the Bank lowered its forecasts for growth in the current and following years. The pound’s decline continued as Mark Carney, the central bank’s Governor, appeared before the press after the decision announcement. Overall, the Bank’s decision, minutes and language used [..]

Forex News – New Zealand’s employment change turns negative; Kiwi sinks by 0.7%

Posted on August 2, 2017 at 8:41 am GMT

Kiwi lovers experienced losses in their holdings for the second day after the number of people employed in New Zealand dropped suddenly in the second quarter, disappointing expectations. Statistics New Zealand released early on Wednesday employment data for the June 2017 quarter. After six quarters of employment growing positively, the number of employees dropped by 0.2% (4,000 people quarter-on-quarter), surprising analysts who anticipated instead for growth to slow down to 0.7% from 1.2% in the previous quarter. In addition, the participation rate went down [..]

Forex News – US personal income growth stalls in June; dollar falls after ISM data

Posted on August 1, 2017 at 2:28 pm GMT

Personal income in the United States was flat in June as a drop in incomes from personal dividends and interest following a big jump in May contributed to the weakest reading in seven months. Expectations were for incomes to rise by 0.4% month-on-month, following a downwardly revised 0.3% gain in May. Disposable income, when accounting for inflation, fell by 0.1% m/m after increasing by 0.5% in the previous month. Personal spending grew in line with analysts’ estimates, rising by 0.1% [..]

Forex news – Aussie breaks above $0.80 but loses ground after RBA keeps rates on hold

Posted on August 1, 2017 at 10:52 am GMT

Early on Tuesday, the Australian dollar picked up following the upbeat Chinese PMI data, but a few hours later the RBA’s decision to maintain its monetary policy on hold over concerns of a rising exchange rate drove the currency lower. As expected, RBA policymakers held interest rates steady on Tuesday at a record low of 1.5% at their August meeting, with rates being unchanged for almost a year now. Despite the bank’s forecasts about Australian economic growth remaining optimistic, as employment opportunities, consumer confidence, and business conditions are continuously improving, RBA members are worried about the [..]

Forex News – Eurozone GDP growth ticks up to 0.6% in Q2; euro steady

Posted on August 1, 2017 at 10:24 am GMT

Economic growth in the euro area accelerated slightly to 0.6% quarter-on-quarter in the three months ending June, in line with analysts’ expectations. In the previous quarter, growth was revised down however, from 0.6% to 0.5%. On a 12-month basis, GDP growth edged up from 1.9% to 2.1%, also in line with forecasts and the highest since the final quarter of 2015. The data reinforces the view that the Eurozone economy continues to gain momentum after more than two years of [..]

Forex News – Euro gains moderately as core inflation and unemployment surprise positively

Posted on July 31, 2017 at 10:28 am GMT

July flash inflation numbers, as well as the June unemployment rate for the eurozone were released today. The positive surprise in core inflation, in conjunction with the fall in the unemployment rate, led to the euro recording gains relative to major currencies. Looking at today’s figures, the July flash inflation rate stood at 1.3% on an annual basis, as expected. This also coincided with the prior month’s figure. Rising energy prices contributed the most to inflationary pressures during July. The [..]

Forex News – Aussie little moved after soft Chinese PMI and mixed Australian data

Posted on July 31, 2017 at 9:29 am GMT

Data out of China on Monday showed that both manufacturing and service sectors’ activity slowed down unexpectedly in July, but remained above the expansionary threshold. However, the aussie did not show any significant reaction to Chinese data as Australian private housing credit in June surprised analysts to the upside while new home sales for the same month plummeted. The China Logistic Information Centre released on Monday its estimates on Chinese manufacturing and non-manufacturing Purchasing Managers indexes (PMI) for the month of July. According to the numbers, Chinese manufacturing PMI slipped by 0.3 points in July to 51.4, [..]

Forex News – US Q2 GDP expands as expected but dollar plummets

Posted on July 28, 2017 at 3:37 pm GMT

The dollar extended yesterday’s losses on Friday after the US GDP growth initial estimates for the second quarter of the year came in as expected but employment costs and the first look on quarterly inflation based on the PCE measure disappointed analysts. According to the Bureau of Economic Analysis, the US economy expanded substantially as expected by 2.6% on an annualized basis in the June quarter, approaching Trump’s desired growth target of 3% for 2017. The figure for the first [..]

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