Forex Previews

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Week Ahead – Eurozone and US inflation eyed; RBNZ meets; low hopes for Brexit deal at EU summit

Posted on June 22, 2018 at 12:24 pm GMT

Inflation data will be watched in the Eurozone and the United States as both countries make progress towards their price targets. GDP numbers will also be in focus as final estimates are released in the US and the United Kingdom, while Canada publishes monthly growth figures. Central bank activity will come from the Reserve Bank of New Zealand, while an EU summit is sure to make the headlines as European leaders meet to discuss Brexit. Eurozone CPI to hit 2% [..]

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Japanese inflation to confirm Bank of Japan remains long way from policy normalization – Forex News Preview

Posted on June 21, 2018 at 2:08 pm GMT

Japanese inflation data for May are scheduled for release on Thursday at 2330 GMT. Overall, the numbers are expected to confirm that the Bank of Japan remains far off from its inflation target. Consequently, further monetary policy divergence between the Japanese and US central banks is to be anticipated moving forward, something which favors a stronger dollar/yen pair. Thursday’s figures out of Japan are projected to show headline inflation as gauged by the consumer price index (CPI) falling to 0.3% [..]

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Eurozone’s PMIs expected to lose more steam, keeping euro under pressure – Forex News Preview

Posted on June 21, 2018 at 12:42 pm GMT

The Eurozone will see the release of its preliminary PMI figures for June on Friday, at 0800 GMT. Forecasts suggest the surveys may signal a further slowdown in the Eurozone’s growth momentum, and although that may not be much of a surprise for ECB policymakers, it may be another factor weighing on the already-battered euro. It’s no secret the Eurozone’s economy has lost momentum since the beginning of the year. While growth rates are still decent, the currency bloc has [..]

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Canadian inflation data likely to add to dilemma for Bank of Canada – Forex News Preview

Posted on June 21, 2018 at 11:26 am GMT

Canada will see the release of monthly inflation and retail sales figures on Friday at 12:30 GMT. The data comes just under three weeks before the Bank of Canada holds its next policy meeting on July 11 when policymakers will ponder whether to raise interest rates for a second time this year. While strong numbers on Friday would boost rate hike expectations for next month, the Canadian dollar may struggle to find much support from the data amid a worsening [..]

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SNB: The song remains the same – Forex News Preview

Posted on June 20, 2018 at 11:19 am GMT

The Swiss National Bank (SNB) is widely expected to keep its policy unchanged when it meets on Thursday, at 0730 GMT. Markets will look for hints on whether the Bank is contemplating an eventual exit from its ultra-loose policies. Although Swiss economic data are painting a more colorful picture, it still appears too early for policymakers to signal an exit from negative interest rates. Continued dovish signals would argue for a weaker franc over time, absent any global risk-off developments. [..]

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Bank of England decides amid Brexit developments; MPC members to signal August hike? – Forex News Preview

Posted on June 20, 2018 at 10:13 am GMT

The Bank of England will be completing its meeting on monetary policy on Thursday, with its rate decision and meeting minutes scheduled for release at 1100 GMT. In the meantime, Brexit is again in the spotlight, having policy implications and thus the capacity to move the British currency. The BoE is widely anticipated to hold its policy rate unchanged at 0.5% upon conclusion of this week’s meeting on monetary policy. The upcoming meeting does not feature a press conference by [..]

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New Zealand GDP predicted to expand in slower pace while kiwi stalls near $0.70 – Forex News Preview

Posted on June 19, 2018 at 2:01 pm GMT

New Zealand will publish GDP figures on Thursday (Wednesday 2245 GMT) for the first quarter. Investors will be cautious for any clues as to whether the Reserve Bank of New Zealand (RBNZ) will raise or decrease interest rates. Economic growth is expected to have slowed down further in the first quarter of 2018. Analysts are estimating New Zealand’s economy grew by just 0.5% in the three months to the end of March, easing slightly from the previous two quarters of 0.6%. On an annual [..]

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Week Ahead – Central bank theme continues with BoE, SNB; OPEC to discuss output increase

Posted on June 15, 2018 at 1:34 pm GMT

The central bank theme will continue into the coming week as it’s the turn of the Bank of England and the Swiss National Bank to set monetary policy. Oil and energy stocks will also come into focus as OPEC and Russia meet to discuss whether to relax the oil output cap. It will be a quieter week for economic data, however, with Japanese inflation, flash Eurozone PMIs and New Zealand GDP likely to be the main headline grabbers. Loonie to [..]

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Bank of Japan: rate hikes not yet in the cards – Forex News Preview

Posted on June 14, 2018 at 2:22 pm GMT

The second quarter of the year did not enjoy a good start in Japan, with inflation and business indicators slowing down to warn policymakers that a move from stimulative monetary policies is probably not a good idea this Friday.  Early on Friday at a tentative time, the Bank of Japan will make an announcement on interest rates and deliver its rate decision statement. Policymakers are widely expected to refrain from raising borrowing costs, maintaining short-term interest rates at minus 0.1% and keeping their ultra-easy monetary policy in place. This also includes continuing to buy government bonds in order [..]

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China sees release of important data amid trade developments; aussie gathers attention – Forex News Preview

Posted on June 13, 2018 at 2:15 pm GMT

Chinese figures on fixed asset investment, industrial production and retail sales for May will be released on Thursday at 0200 GMT. Positioning might take place on the aussie as the numbers hit the markets, due to it being perceived as a liquid proxy for China’s economy by the investor community. Fixed asset investments in urban areas are anticipated to have grown by 7.0% y/y in the year to May, the same pace as in April. Meanwhile, industrial output is projected [..]