Forex Previews

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Week Ahead – Dollar rally turns to US jobs report for refuelling; Loonie seeks direction from BoC and GDP data

Posted on May 25, 2018 at 1:08 pm GMT

US economic data will return to the forefront next week, with the nonfarm payrolls report being the main focal point. The Bank of Canada will be the only major central bank holding a policy meeting, while Canadian GDP figures will keep the loonie under the limelight. The other highlights will come from the Eurozone flash CPI release, Japanese and Australian capex data, and the latest PCE inflation figures out of the US. The week will get off to a slow [..]

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ECB minutes in focus; euro selloff to continue? – Forex News Preview

Posted on May 23, 2018 at 2:45 pm GMT

The official record of the European Central Bank’s monetary policy meeting in late April will be made public on Thursday at 1130 GMT. In FX markets, it will be interesting to see whether the release can put an end to the intense selling pressure the euro has been facing recently relative to majors including the dollar, yen and the Swiss franc. As recently as a few weeks ago, a “reasonable” expectation was for the ECB to soon start to conclusively [..]

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US Markit Manufacturing PMI to stay at its highest in over three years – Forex News Preview

Posted on May 22, 2018 at 3:45 pm GMT

US flash IHS Markit Manufacturing Purchasing Managers Index (PMI) will come into focus on Wednesday at 1345 GMT to indicate whether April’s upturn in the manufacturing sectors stretched into May. If this is the case, an upbeat report could provide evidence that GDP growth in the world’s biggest economy may rebound in the second quarter, as analysts’ project. According to initial forecasts, the US manufacturing PMI is said to remain unchanged at 56.5 in May, at the highest level recorded since October 2014 and above the threshold of [..]

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Dollar looks to Fed minutes for direction – Forex News Preview

Posted on May 22, 2018 at 3:32 pm GMT

The Fed will release the minutes of its May policy meeting on Wednesday, at 1800 GMT. Markets will likely look for insights on whether policymakers are willing to allow inflation to overshoot its 2% target without raising rates for a while, something they teased in the statement. A confirmation could push back on speculation for faster hikes this year, and perhaps diminish some of the dollar’s appeal. The Fed sent mixed messages when it kept interest rates unchanged in May, [..]

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Euro at risk of more downside as Eurozone PMIs unlikely to point to growth revival in May – Forex News Preview

Posted on May 22, 2018 at 9:51 am GMT

Flash PMI readings out of the Eurozone on Wednesday (due at 08:00 GMT) will be closely scrutinized by investors as they will be looking for signs that economic activity is picking up following a substantial slowdown between February and April. However, those hoping for an end to the soft patch are likely to be disappointed as the PMI indicators are forecast to fall further in May. After soaring to a near 12-year high in January, the euro area’s composite PMI, [..]

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Sterling in focus amid flurry of data, BoE speeches, and Brexit talks – Forex News Preview

Posted on May 21, 2018 at 3:30 pm GMT

This will be a decisive week for the British pound, as a raft of crucial economic data releases and remarks by BoE policymakers could make or break expectations around a potential rate increase at the August policy meeting. While economic forecasts are quite upbeat, other gauges of the UK economy are not as optimistic, which suggests that sterling may be at risk from these data releases. Brexit talks resume this week as well. The British currency has come under fire [..]

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Week Ahead – Euro looks to flash PMIs for bounce; Pound eyes UK CPI and retail sales data

Posted on May 18, 2018 at 1:01 pm GMT

As the US dollar continues to power ahead, the beleaguered euro and pound will be seeking for some reprieve from key economic indicators out of the Eurozone and the United Kingdom next week. With the US calendar being lighter in the coming seven days, the greenback may lose some steam, though the FOMC minutes could still keep the dollar bulls happy. In other data, trade figures out of Japan and New Zealand will be watched. Japanese exports eyed for Q2 [..]

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Canadian inflation to hold above 2.0%; retail sales to ease – Forex News Preview

Posted on May 17, 2018 at 3:58 pm GMT

Canada will see the release of both inflation and retail sales figures on Friday at 1230 GMT, with investors looking eagerly for signs of further economic recovery that could increase chances for a tighter monetary policy this year, given the Bank of Canada’s data dependence. Forecasts are for headline inflation to remain elevated above the mid-point of the BoC target range in April, while retail sales are expected to slip slightly in March. Still, with NAFTA talks on thin ice and household debt at elevated levels, a significant positive surprise may be [..]

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Japanese inflation to further ease; BoJ normalization cycle not yet visible – Forex News Preview

Posted on May 17, 2018 at 9:38 am GMT

Japan’s inflation figures for the month of April are due on Thursday at 2330 GMT. The numbers are expected to show an easing in core CPI, this being the measure targeted by the Bank of Japan in its policymaking, and point towards the direction of further monetary policy divergence between the Japanese and US central banks moving forward. This of course has implications for currency markets as well. Core CPI, the measure that excludes volatile fresh food items but includes [..]

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Australia’s wage and employment data under the microscope – Forex News Preview

Posted on May 15, 2018 at 3:54 pm GMT

In Australia this week, the main events will be the release of wage growth and employment data on Wednesday and Thursday respectively, both at 0130 GMT. Forecasts point to another set of decent figures, which may support the Aussie a little, but are unlikely to change the RBA’s neutral stance on policy. The Reserve Bank of Australia (RBA) held its policy unchanged for the 19th consecutive meeting in early May, marking a new record for keeping interest rates stable. The [..]