Forex News

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Forex News – RBNZ maintains accommodative stance; kiwi jumps

Posted on June 22, 2017 at 7:39 am GMT

As widely expected the Reserve Bank of New Zealand decided to maintain its accommodative stance by keeping its benchmark interest rate at record low levels, adding that it would continue doing so for a “considerable period”. Specifically, the central bank’s official cash rate was held at 1.75%. It has been at this level since November 2016, the last time the Bank engaged in a quarter percentage point rate cut. The RBNZ Governor Graeme Wheeler said that “policy may need to [..]

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Forex News – Oil back in bear market after latest sell-off; Commodity currencies fall only modestly

Posted on June 21, 2017 at 10:53 am GMT

Crude oil prices fell by 2% on Tuesday as investors continued to fret about the lingering oversupply, which is showing no sign of easing despite 6 months of output restrictions by major producers. The recovery in prices from the 2014-15 downtrend stalled in January when they peaked at 1½-year highs. WTI crude has since fallen by 22% from $55.24 on January 3 to a 7-month low of $42.75 a barrel yesterday. Brent crude is also down sharply, declining from $58.37 [..]

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Forex News – Sterling slides after Carney says now not the time for rate hike

Posted on June 20, 2017 at 1:07 pm GMT

The pound came under pressure on Tuesday after the Bank of England Governor, Mark Carney, appeared to rule out a rate hike anytime soon. Speaking at a breakfast event in Mansion House, London, Carney struck a more cautious tone than the surprisingly hawkish language used at the Bank of England’s policy meeting last week. Markets were shocked last Thursday when three Monetary Policy Committee (MPC) voted to raise rates by 25 basis points. The unexpectedly close vote had helped sterling [..]

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Forex News – Macron secures comfortable majority in parliament; euro boosted

Posted on June 19, 2017 at 8:16 am GMT

The French President Emmanuel Macron has won the strong parliamentary majority he asked the people of France to give him and can now proceed with the reforms he campaigned for, aiming to revive the French economy. Given his pro-EU rhetoric, his success could translate into success for the rest of the EU and perhaps more specifically the Eurozone. Macron’s centrist party, La République en Marche, and its fellow centrist ally, Modem, secured a comfortable majority in the National Assembly, the [..]

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Week Ahead – Brexit talks begin; RBNZ in focus; PMI data on tap; Fed speakers to be closely scrutinized

Posted on June 16, 2017 at 2:20 pm GMT

Brexit negotiations finally begin in Brussels on Monday. New Zealand’s central bank will be in focus next week while flash June PMI surveys out of the Japan, the Eurozone and the United States will also be on investor’s watch list. Various FOMC members are due to give speeches. French President Emmanuel Macron’s Republic on the Move (REM) party is set to win Sunday’s legislative elections. Brexit Negotiations Brexit negotiations are due to start on Monday June 19 with Brexit Secretary David Davis [..]

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Forex News – Bank of Japan maintains massive stimulus; yen declines

Posted on June 16, 2017 at 8:06 am GMT

The Bank of Japan held steady on its accommodative stance as its two-day meeting came to an end. At a time when major central banks around the world have either started normalizing rates or signaled that they’re on a path of doing so, the BoJ’s current stance is expected to add downside pressure on the Japanese currency. As anticipated, the BoJ maintained the 0.1% interest it charges banks for holding reserves with the central bank. Moreover, it made no changes [..]

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Forex News – Sterling jumps after hawkish BoE; rate hikes could come sooner

Posted on June 15, 2017 at 2:41 pm GMT

The pound jumped after the Bank of England (BoE) policy announcement today, erasing earlier losses against the dollar. The BoE was more hawkish-than-expected and the Monetary Policy Committee (MPC) vote count indicated a surprisingly tight decision. The Bank left its benchmark interest rate unchanged at a record low 0.25%. While this was widely expected, the 5 – 3 vote for a rate hike was not anticipated, suggesting the central bank was coming closer to raising rates. The result sent sterling [..]

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Forex News – Upbeat Australian job report boosts aussie dollar; unemployment rate at 4-year low

Posted on June 15, 2017 at 10:51 am GMT

The Australian economy added significantly more jobs in May than forecasters predicted, spurring hopes that labor market strength will start feeding into the overall economy. Specifically, the number of jobs added to the economy reached 42,000 in May, far outstripping expectations of 10,000. This is the third month in a row that the level of hiring surprises to the upside, confirming the formation of a positive trend for the Australian labor market and consequently the economy overall. Last month’s figure [..]

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Forex News – New Zealand GDP surprises to the downside; Kiwi falls

Posted on June 15, 2017 at 7:39 am GMT

The New Zealand GDP figures released today showed the country’s economy expanding at a slower pace than projected by analysts during the first quarter of the year. The New Zealand dollar fell relative to its US counterpart as the data hit the markets. Regarding the actual figures, first quarter GDP grew by 0.5% on a quarterly basis, falling short of expectations for 0.7% growth but slightly above the respective growth rate during the fourth quarter of 2016, which stood at [..]

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Forex News – Fed raises rates, expects one more hike, outlines balance sheet reduction plan; dollar off lows

Posted on June 14, 2017 at 9:07 pm GMT

The US Federal Reserve stuck to its existing rate hike path by raising the federal funds rate by 25 basis points at the end of its two-day monetary policy meeting on Wednesday. The latest move – the second this year – takes the target range for the fed funds rate to 1.00-1.25%. With today’s tightening already fully priced in by the markets, the focus was on the future direction of monetary policy as the Federal Open Market Committee publishes its [..]

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