Forex News

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Forex News – Mexican peso surges 2% after central bank launches hedge program to defend currency

Posted on February 22, 2017 at 2:48 pm GMT

The Mexican central bank, Banco de Mexico (Banxico), surprised the markets yesterday when it announced it is launching a $20 billion hedging program to stem further declines of the Mexican peso. The move is designed to act as an alternative to currency intervention without eating into foreign exchange reserves. By auctioning currency hedges, the central bank can use derivatives such as dollar swaps to intervene in the spot market. Banxico has been struggling to defend the Mexican peso, which has [..]

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Forex News – Eurozone business activity hits 6-year high but euro sags

Posted on February 21, 2017 at 11:54 am GMT

Economic activity in the euro area expanded at the fastest pace in nearly six years in February according to Markit’s flash PMI readings. The surprise surge in output was broad based with both the services and manufacturing sectors performing strongly, and new orders and employment also rising sharply over the month. The flash estimate of the Eurozone manufacturing PMI rose from 55.2 in January to 55.5 in February, beating forecasts of 55.0. This was the highest figure in almost six [..]

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Week Ahead – FOMC and RBA minutes in focus; UK GDP, PMI data due

Posted on February 17, 2017 at 2:48 pm GMT

The economic calendar for the upcoming week is relatively quieter following a busy flow of data releases this week. The FOMC minutes and Fed speakers will attract the market’s attention, while PMI data and the second estimate of fourth quarter GDP for the UK will most probably be noteworthy economic reports to look at.   UK GDP in focus First up next week will be the UK’s Rightmove House Price index due on Monday. It will be a good indication [..]

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Forex News – Australian jobs report mixed; Aussie eases after initial jump

Posted on February 16, 2017 at 1:20 pm GMT

Australia’s unemployment rate unexpectedly declined in January, significantly boosting the Australian dollar against other major currencies. However, a more careful look into the details underpinning the data painted a more of a mixed picture and led to the aussie dollar easing off from earlier gains. Delving into the numbers, January’s unemployment rate fell to 5.7% from 5.8% the previous month. Expectations were for the rate to stay put at 5.8%. The economy added 13,500 jobs in January, far higher than [..]

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Forex News – Higher US inflation and retail sales boost chance of March Fed rate hike

Posted on February 15, 2017 at 3:32 pm GMT

The dollar extended gains after US inflation and retail sales data, which bolstered the case for higher interest rates, perhaps as soon as next month. The annual headline inflation reading came in at 2.5 percent for January, the fastest pace in five years. It was up from a previous 2.1 percent and beat forecasts for a 2.4 percent increase. The month-on-month CPI figure also saw a big jump to 0.6 percent in January from December’s 0.3 percent rise. Higher gasoline [..]

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Forex News – Dollar lifted by hawkish Yellen but odds of March hike remain low

Posted on February 15, 2017 at 3:07 pm GMT

Expectations of a near-term Fed rate hike were bolstered on Tuesday after Janet Yellen, the Chair of the Federal Reserve, gave an upbeat assessment of the US economy in her semi-annual testimony to Congress. Speaking before the Senate Banking Committee, Yellen said “waiting too long to remove accommodation would be unwise”, adding that any delay in raising rates could disrupt financial markets and drive the economy into recession if rates were to rise too rapidly at a later stage. While [..]

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Forex News – Pound hurt by softer UK inflation number

Posted on February 14, 2017 at 1:31 pm GMT

Sterling weakened sharply after the UK headline inflation number rose less than expected in January. The 1.8 percent year-on-year inflation rate was below the forecast of 1.9 percent but higher than the previous 1.6 percent rate. The reason the pound fell was mainly because today’s number was below the Bank of England’s target inflation rate of 2 percent and would reduce the chances of an interest-rate hike this year. The British currency dropped sharply against the dollar soon after the [..]

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Week Ahead – Inflation and Japan GDP in focus; Yellen testimony also eyed

Posted on February 10, 2017 at 4:17 pm GMT

Inflation will be the most watched data next week as China, the UK and the US report their monthly CPI figures. Japanese GDP numbers will also be important as Japan’s economy continues to show increasing signs of strength, while the Riksbank’s latest monetary policy meeting will likely attract attention too. However, the week’s highlight could come from Fed Chair Yellen’s testimony in Congress, which will be the first since Trump took office. Japan to post fourth straight quarter of growth [..]

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Forex News – RBNZ signals rates to stay low for considerable period

Posted on February 9, 2017 at 3:32 pm GMT

The New Zealand dollar weakened sharply early on Thursday after the Reserve Bank of New Zealand signaled that it may keep rates at record lows for at least the next two years. The RBNZ kept the overnight cash rate (OCR) unchanged at 1.75 percent in today’s policy meeting after having previously been in an easing mode and cutting the OCR three times in 2016. The Bank’s forward guidance remained neutral and RBNZ Governor Graeme Wheeler did not want to encourage [..]

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Forex News – RBA holds monetary policy unchanged; lowers market’s rate cut expectations

Posted on February 7, 2017 at 2:27 pm GMT

The Australian central bank held its main cash rate steady at a record low 1.50 percent today in its first monetary policy meeting for 2017. The move was as expected and as a result the interest rate has remained unchanged since the 25-basis point cut at the August meeting. The Reserve Bank of Australia signaled it remains upbeat on the global growth outlook but noted that some uncertainties remain. As far as the domestic economy is concerned, it was positive [..]

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