Forex Previews

Week Ahead – All eyes on NFP after dovish FOMC; RBA and BoE to hold rates

Posted on July 28, 2017 at 3:22 pm GMT

Key data out of the United States next week may provide the struggling dollar some boost after the Fed struck a less hawkish tone at the July policy meeting. The latest non-farm payrolls numbers will be the most keenly watched indicators of the week but central bank meetings in Australia and the UK will also be in focus. In other data, the preliminary flash GDP estimates for the Eurozone will be eyed too. RBA meets as aussie soars above $0.80 [..]

Forex News – Yen finds support as Japanese consumption and employment brighten in June

Posted on July 28, 2017 at 10:02 am GMT

On early Thursday, the yen partially reversed yesterday’s losses after statistics out of Japan showed a surprise improvement in domestic consumption and the labour market. This is said to put the BOJ’s recent arguments for maintaining current policy into question and will likely encourage policymakers to scale back their ultra-loose stimulus program in the future. In June, the unemployment rate in Japan beat forecasts according to the Japan Institute for Labour, falling from 3.1% in May to 2.8%, while analysts [..]

Forex News – Dollar little reacts to initial jobless claims and durable goods figures

Posted on July 27, 2017 at 3:58 pm GMT

On Thursday, a day after the Fed decided to maintain benchmark rates unchanged, the Department of Labour released data on initial jobless claims recorded in the past week, while the Census Bureau published the number of new durable goods ordered for the month of June. Initial jobless claims edged up by 10 thousand and durable goods orders increased by more than double the expected figure. The core measure of durable goods orders, which excludes transportation items, marginally grew, but came [..]

Forex News – Fed to cut balance sheet ‘relatively soon’; dollar slips on change in inflation language

Posted on July 26, 2017 at 7:56 pm GMT

The Federal Reserve announced its widely expected decision to hold the federal funds rate at a target range of between 1.00% and 1.25% on Wednesday. In another widely anticipated move for the July meeting, the Federal Open Market Committee (FOMC) signalled it will begin the process of reducing its $4.5 trillion balance sheet “relatively soon”. At the last meeting in June, the Fed had said balance sheet normalization would start “this year”, having first flagged the action back in March. [..]

Forex News – UK Q2 GDP growth initial estimate pushes sterling down

Posted on July 26, 2017 at 1:14 pm GMT

On Wednesday, sterling edged down after initial UK GDP growth estimates showed that the expansion of the British economy continued its downtrend in the June quarter, recording the lowest yearly growth since 2013. This followed the IMF’s downgrade of its UK GDP growth forecasts on Monday. With uncertainty around Brexit talks in the background, which have not made any significant progress so far, the BOE policymakers are expected to keep interest rates steady next week. According to the Office for National Statistics, the British economy grew by 1.7% year-on-year as expected [..]

Forex News – Aussie pulls back on softer growth in Australian consumer prices

Posted on July 26, 2017 at 9:27 am GMT

The aussie weakened in the middle of Asian trading as statistics out of Australia indicated that consumer prices experienced a surprisingly softer increase in the June quarter, justifying the RBA’s last decision to hold interest rates steady and lengthening the odds for another rate hike. On Wednesday, in the middle of the Asian session, the Australia Bureau of Statistics published CPI readings for the second quarter of the year. According to the numbers, headline CPI grew by 0.2% on a [..]

Forex News – Euro holds gains after German Ifo business climate outperforms

Posted on July 25, 2017 at 3:18 pm GMT

Until early today analysts expected German business conditions to weaken in the near future after PMI readings published yesterday appeared lower in July. However, a few hours later, they were surprised to see the German Ifo business climate index for the same month beating their forecasts and hitting the highest level since Germany’s reunification. Companies participating in the survey (7,000 of them) felt more optimistic about their current and future business activities. Although composite PMI, which regards the combined performance [..]

Forex News – OPEC remains committed to cutting output; oil rises; loonie receives a boost

Posted on July 25, 2017 at 2:36 pm GMT

Oil prices maintained their positive momentum, rising for a second straight day after OPEC countries called on several of the organization’s members to adhere to the deal to reduce output. Adding to momentum for the commodity and further boosting prices was the commitment by Saudi Arabia – the world’s number one oil exporter – to cut exports starting next month. The oil-linked loonie gained on the back of these developments, rising to a fresh multi-month high relative to the dollar. [..]

Forex News – Dollar weighed by White House turmoil after Sean Spicer resignation shakes up Trump’s inner circle

Posted on July 24, 2017 at 1:37 pm GMT

Following the recent developments connected with the investigation into Russia’s ties with the US presidential election and Trump’s failure to pass the health care bill in Congress for the second time, the uncertainty around Trump’s administration peaked on Friday after Sean Spicer, the White House press secretary, resigned from his role. The dollar saw little immediate reaction to the news on Friday but last week’s events weighed on the currency in forex markets today. Sean Spicer announced on Friday his [..]

Forex news – Canadian inflation and retail sales moderate in June but loonie rallies

Posted on July 21, 2017 at 4:01 pm GMT

The commodity-linked Canadian dollar, which has benefited this week from a rebound in energy prices, extended its gains on Friday despite data out of the country indicating softer inflation and retail sales in June. The focus now turns to the Bank of Canada, which is expected to maintain the hawkish stance it held earlier this month. Statistics Canada released on Friday the latest numbers on inflation and retail sales. According to the data, Canadian headline CPI turned negative in June for the [..]

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