Forex Previews

Bank of Canada to hold rates steady but loonie could drift lower – Forex News Preview

Posted on January 21, 2020 at 4:31 pm GMT

The Bank of Canada is widely expected to hold interest rates steady on Wednesday at 14:00 GMT and set a new tone for 2020 as a layer of global uncertainty on the trade front has been removed. Markets, however, may have overpriced the positive developments, exposing the loonie to a downside correction if the BoC governor delivers cautious comments about the country’s 2020 performance. Yet, a rate cut in 2020 might not work in policymakers’ favor as household remain highly [..]

Bank of Japan to likely keep policy unchanged as risks subside – Forex News Preview

Posted on January 20, 2020 at 12:07 pm GMT

The Bank of Japan will be the first of the major central banks to hold its first monetary policy meeting of 2020 on January 20-21.  The Bank will also be releasing its quarterly Outlook Report together with its decision on Tuesday. Those hoping for some fireworks would have better luck holding out for the Bank of Canada’s and European Central Bank’s meetings later in the week as the BoJ is not expected to alter policy or its language. However, the [..]

Week ahead – ECB, BoJ, and BoC meet before crucial European and UK PMIs

Posted on January 17, 2020 at 1:41 pm GMT

It’s going to be an action-packed week, with three major central bank meetings and a storm of economic data likely to keep traders glued to their screens. The European Central Bank is unlikely to signal anything radical, so the euro might be driven mainly by the bloc’s PMI data. The Bank of Japan meeting could also be a snoozer, though there is a case to be made for the Bank of Canada to adopt a more dovish tone. In Britain, [..]

China’s GDP growth expected to stabilize as Phase One deal completed – Forex News Preview

Posted on January 16, 2020 at 2:35 pm GMT

China will report GDP numbers for the fourth quarter on Friday 02:00 GMT alongside industrial output and retail sales figures for December. After growth slowed to a three-decade low in the third quarter, will the optimism around the ‘phase one’ trade deal in the final three months of 2019 be enough to kick start the economy? No rebound expected just yet Economic growth in China has been steadily decelerating since 2010 and stood at just 6.0% year-on-year in the third [..]

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ECB minutes: Doves vs hawks in a framework review – Forex News Preview

Posted on January 14, 2020 at 4:10 pm GMT

The minutes of the latest European Central Bank (ECB) meeting are due at 12:30 GMT on Thursday. Investors will look for any details about the central bank’s framework review, and specifically, about whether the inflation target may be changed. ECB President Lagarde will speak a few hours later, at 18:00 GMT. As for the euro, the outlook still looks bleak, with economic growth barely positive and the risk of an escalation in US-EU trade tensions looming. Don’t celebrate yet The [..]

US inflation and retail sales data to drive dollar – Forex News Preview

Posted on January 13, 2020 at 3:31 pm GMT

It might be an interesting week for the greenback, with the latest CPI inflation numbers hitting the markets on Tuesday at 13:30 GMT, ahead of retail sales figures on Thursday. Overall, these are likely to confirm the American economy remains in good shape, reinforcing the Fed’s ‘on-hold’ stance. As for the dollar, its strength is unlikely to abate anytime soon, as there’s little alternative for investors seeking higher interest rates alongside safety. A decent house in a bad neighborhood The [..]

Flurry of UK data due as pound grapples with rate cut risks – Forex News Preview

Posted on January 10, 2020 at 12:30 pm GMT

It’s a busy data week in the UK, with GDP numbers for November hitting the markets on Monday at 09:30 GMT, before inflation figures on Wednesday and retail sales on Friday. The pound seldom reacts to economic data nowadays, but that may change now that the Bank of England (BoE) is considering cutting rates. In fact, markets may be underpricing the possibility of a rate cut, implying that the risks surrounding the pound may be tilted to the downside from [..]

Week Ahead – US and China set to seal Phase One deal ahead of Chinese Q4 GDP release

Posted on January 10, 2020 at 11:13 am GMT

The United States and China will finally put pen to paper on the hard-fought ‘phase one’ deal on January 15, ending months of trade uncertainty and hostilities. However, it will be too early for the ebb in trade tensions to have benefited China’s export-heavy economy in the fourth quarter and GDP numbers due out of the country will likely leave markets underwhelmed. It will be an important data week in the UK and US as well, with monthly industrial output, [..]

Loonie braces for Canadian jobs data and Poloz’s speech – Forex News Preview

Posted on January 9, 2020 at 1:25 pm GMT

The latest employment figures out of Canada will be released at 13:30 GMT on Friday. Recent data have been disappointing, which puts extra emphasis on the upcoming numbers to either confirm that the economy is losing steam or dispel such concerns. As for the loonie, the risks surrounding its reaction seem asymmetric, with any disappointment generating bigger losses compared to the corresponding gains in case the data beat expectations. Separately, BoC Governor Poloz will speak today at 19:00 GMT, and [..]

NFP could be less exciting in December but dollar may not care – Forex News Preview

Posted on January 9, 2020 at 11:15 am GMT

The US is scheduled to publish its final Nonfarm payrolls report (NFP) for 2019 on Friday at 12:30 GMT and despite the ups and downs during the year and a potential slowdown in employment growth this week, the labor market is expected to have maintained a robust profile, reducing the odds for a more accommodative monetary policy. The dollar, though, may consider the data outdated, probably showing little volatility in the aftermath. NFP forecasts Sharp dips in employment growth during [..]

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