As the race for the next British PM is in the headlines and with Brexit uncertainty overshadowing other economic developments, many forex traders may ignore key inflation data which will be released this morning. The Bank of England has entered into a stealthy hawkish mode for an interest rate increase with commentary that Brexit will not dictate monetary policy and that elevated inflationary pressures would warrant an increase in interest rates for long-term stability of the economy. Most forex trading strategies don’t account for the...
Forex traders will get key inflation data out of the Eurozone today which is expected to show inflationary pressures remain absent. Some analysts question how long it will take the ECB to announce more stimulus as the Eurozone economy is cooling fast and with the US Fed poised to cut interest rates in the second-half of 2019. The Eurozone trade surplus is expected to shrink as a result of the global economic slowdown and today’s ZEW Survey is anticipated to show further deterioration in expectations. How will this impact the Euro after this...
At the beginning of the new trading week, the US dollar holds around two-week highs against major competitors in anticipation of an important meeting of the US Federal Reserve, which, as many expect, will lay the foundation for future interest rate cuts and maintaining the world's largest economy. While strong data on US retail sales last Friday reduced the already low chances of a weakening of the US regulator’s policy this week and raised the dollar, investors are betting that Fed Chairman Jerome Powell will leave the door open for future...
Forex traders will get a light economic calendar to start the new trading week and many may await the US Fed announcement this Wednesday. While no change in interest rates is expected, the announcement could see some significant changes in the text in order to communicate an interest rate cut as the economy is struggling with the Trump administration’s trade war with China. Despite the ongoing trade war, which is likely to escalate further with no deal expected at this month’s G-20 summit in Japan, the Swiss Franc has rallied as its economy is...
The Australian and New Zealand dollars fell on Friday, as interest rate projections undermined demand, while the G-20 meeting at the end of this month keeps investors from risky actions in the market. The Australian dollar fell by 0.24% to $ 0.6892 and fell 1.5% over the week, showing the largest decline since mid-May. The New Zealand dollar fell by 0.4% to $ 0.6529, a decrease of 2% over the week. Forex platform > The movement of futures for bonds suggest that the likelihood that the Reserve Bank of Australia will continue...
