Forex Previews


Week Ahead – Trading to wound down ahead of Easter; dollar to seek support from Fed speakers

Posted on March 23, 2018 at 3:42 pm GMT

After a busy week filled with central bank activity and political developments, there should be some restoration of calm in financial markets over the coming week as trading activity wounds down ahead of the Western Easter celebrations. Data releases out of the United States look set to dominate the calendar, with the core PCE price index for February likely to be the most closely watched item. Fed policymakers may steal the headlines however, as they return to the podium following [..]


Japanese inflation not yet at target and the yen is not helping – Forex News Preview

Posted on March 22, 2018 at 5:10 pm GMT

Inflation in Japan has still some way to run to reach the Bank of Japan’s price target and Friday’s consumer prices are likely to prove that once again. The core CPI, the BoJ’s preferred inflation measure, stood at 0.1% when the central bank decided to impose a negative-rate policy at the beginning of 2016 to incentivize banks and businesses to lend money and therefore increase inflationary pressures in the economy. But instead of seeing the core CPI rising at a faster pace, the measure dropped [..]


Canada’s CPIs and retail sales may help the loonie regain some poise – Forex News Preview

Posted on March 22, 2018 at 1:05 pm GMT

Canada will see the release of its inflation and retail sales data on Friday at 1230 GMT, with forecasts pointing to an acceleration in price pressures and a sharp rebound in consumer spending. While such prints would be pleasant news for the Bank of Canada (BoC) and could benefit the loonie, the currency’s broader direction will also depend to a large degree on how the NAFTA talks progress in the coming weeks. The BoC has gone to great lengths to [..]


Australia set to post another record on jobs growth but RBA could be indifferent – Forex News Preview

Posted on March 21, 2018 at 2:14 pm GMT

Australia will see the release of employment data this week on Thursday at 0030 GMT, with the figures expected to show that the Australian labor market is in a good shape. Analysts believe that the number of jobs created continued to rise in February, posting the longest streak of employment gains since the Australian Bureau of Statistics began its monthly series in 1978. But once again, this is not what aussie traders want to hear most. The path of the unemployment rate and [..]


Forex News Preview – Brexit transition deal gives BoE go-ahead for May rate hike but UK data poses dilemma

Posted on March 21, 2018 at 11:44 am GMT

Bets for a Bank of England rate hike in May received a major boost this week after the United Kingdom and the European Union reached a deal on a 21-month transition period that would come into effect when Britain officially leaves the bloc at the end of March 2019.  The positive development is likely to sway BoE policymakers in favour of signalling a rate increase in May when they convene on Wednesday and Thursday for a two-day monetary policy meeting. [..]


Eurozone PMIs expected to point to further cooling of economic activity – Forex News Preview

Posted on March 21, 2018 at 10:22 am GMT

The eurozone will see the release of flash PMI figures for the month of March on Thursday at 0900 GMT. All three readings – for manufacturing, services, as well as the composite measure that blends the two sectors – are anticipated to slow down relative to recent releases, though still comfortably remain above the 50 threshold that separates sectoral expansion from contraction.  March’s flash manufacturing PMI is projected to stand at 58.1, recording its third straight monthly decline. In February, [..]


RBNZ meeting: Will the song remain the same? – Forex News Preview

Posted on March 20, 2018 at 2:26 pm GMT

The Reserve Bank of New Zealand (RBNZ) will announce its rate decision on Wednesday at 2000 GMT, and policymakers are widely anticipated to stand pat. Given the lack of major developments recently, the Bank seems unlikely to alter its neutral tone, and the financial community appears to view this meeting as a “non-event”. With very few expecting the RBNZ to say anything new though, the Kiwi may be at risk as even small language changes could have a market impact, [..]


Fed widely expected to hike rates; forward guidance to move the dollar – Forex News Preview

Posted on March 20, 2018 at 10:05 am GMT

The Federal Reserve will be completing its two-day meeting on monetary policy on Wednesday, with an interest rate decision being made public at 1800 GMT. The world’s most powerful central bank is widely anticipated to deliver a quarter percentage point interest rate hike, with market focus falling on the Bank’s forward guidance. Moreover, this will be the first meeting that new Fed chief Jerome Powell will preside, something which perhaps renders his press conference following the decision all the more [..]


UK CPIs the first of several risk events for sterling this week – Forex News Preview

Posted on March 19, 2018 at 1:17 pm GMT

It is going to be a crucial week for the British pound, with a Bank of England (BoE) policy decision on Thursday and an EU summit that will determine whether the UK will finally obtain a transitional Brexit deal. Ahead of these events though, the UK will also release a raft of key economic data that could affect expectations around monetary policy, with the first on the list being the nation’s CPI figures for February, due out on Tuesday at [..]


Japan releases trade figures as yen increasingly challenges multi-month high versus dollar – Forex News Preview

Posted on March 16, 2018 at 3:19 pm GMT

Japanese trade data for February will be made public on Sunday at 2350 GMT. Exports are anticipated to grow for the 15th straight month on a yearly basis, albeit at a much slower pace relative to previous months, and imports are expected to expand for the 14th consecutive month. Yen pairs will be gathering attention as the figures hit the markets, especially in light of the latest developments on the trade front. It is those developments though that seem to have [..]

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