Forex News

None of the blogs or other sources of information is to be considered as constituting a track record. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results. The forex market’s initial reaction to a news release usually lasts from 30 minutes to two hours, but the broader impact can last for days.

forex news

Also likely to have probed the pair sellers could be the latest shift in the market’s mood ahead of the key US data. In early Tokyo, IHS Markit reported a surprise rise in Caixin Manufacturing data. The economic data was released at 49.4 for Forex brokers November month vs. 48.9 as projected and October’s release of 49.2. Despite extreme lockdown measures in November by Chinese authorities to contain the COVID-19 epidemic, the economy has managed to display better-than-projected performance.


Gold kicked off the week on a positive note as unrest in China over Covid restrictions strained global sentiment. A growing sense of anticipation ahead of the US jobs report along with other top-tier data this week added to the overall caution, leaving investors on edge.

  • That said, a modest retracement in oil prices from a one-week high touched on Wednesday undermines the commodity-linked Loonie and lends support to the USD/CAD pair.
  • However, fears of a lengthy UK recession are still weighing on sentiment, with the pound down 10% this year.
  • The Canadian dollar has steadied on Tuesday, after starting the week with sharp losses.
  • Each morning, the People’s Bank of China sets a so-called daily midpoint fix, based on the yuan’s previous day’s closing level and quotations taken from the inter-bank dealer.

Aussie pair rallied the most in three weeks as Fed Chair Powell signaled easy rate hikes starting in December. On the Tokyo front, investors are keeping an eye on a speech from Bank of Japan Haruhiko Kuroda. The BOJ Governor is expected to dictate cues about the likely monetary policy action and growth projections. Recently, a Reuters poll dictated that more than ethereum 90% of economists have supported the view of phasing out monetary easing in the latter half of CY2023. Meanwhile, the German Unemployment Rate escalated to 5.6% against expectations and the former release of 5.5%. Accelerating interest rates by the European Central Bank has forced firms to use their current manpower optimally due to bleak economic projections.

US October PCE inflation & ISM Manufacturing PMI Preview: Seen through Fed’s eyes

As the Federal Reserve has decided to consider economic prospects too along with the foremost priority of bringing price stability, the US Dollar might lose its dictatorship ahead. USD/IDR rebounds from intraday low to $15,635 during early Thursday as downbeat Indonesia inflation numbers allowed bears to take a breather at the lo… Looking at data, don’t think now conditions will fall into place to exit easy policy any time soon. BOJ’s Noguchi teases pre-emptive withdrawal of stimulus to propel JPY of late…. China, EU should strengthen macroeconomic policy coordination and complementary advantages, jointly create new growth engines. Meanwhile, signs of the gradual opening of the Chinese economy led by relaxations in zero Covid-19 policy to return economic prospects on track have also strengthened the New Zealand Dollar. Don’t wait for any more to download the FXStreet mobile app and receive the best and analysis in real-time.

Fed Chair in his speech cited that it is not appropriate to ‘Crash the economy and clean it afterward’. This has confirmed that the Federal Reserve won’t continue the 75 basis points rate hike spell now and may shift to a lower rate hike to 50 bps.

The white metal retreats to the lower end of its daily trading range during the early European session and is currently placed around the $22.25-$22.20 region. The technical set-up favours bullish Forex traders and supports prospects for further gains. Furthermore, Bank of Japan board member Asahi Noguchi signalled chances of pre-emptive stimulus withdrawal if inflation overshoots expectations.

forex news

This brings overnight risk and may require you to pay additional holding costs. Therefore, traders should ensure that they have sufficient funds in their account to cover these costs.

Forex Market Map

Forex markets tend to respond the most to macroeconomic news – the kind of developments that reflect or impact broad economies. Generally speaking, forex traders can look at economic news to assess its impact on interest rates and monetary policy​. News that suggests a more hawkish central bank tends to push forex pairs up in value relative to other currencies, while dovish news can cause a currency to depreciate. In order to read news events, you should familiarise yourself with economic indicators​​, which are macroeconomic factors that have an impact on all financial markets, whether it be forex, shares or indices. These can include changes to interest rates, inflation, unemployment levels or retail income for a specific country and these all have a significant effect on the financial markets and overall state of the economy. Previously, Fed’s Powell stated that it makes sense to moderate the pace of interest rate increases while also suggesting that the time to slow the pace of rate hikes could come as soon as the next meeting in December. The commentary from Fed chair Jerome Powell has confirmed that the central bank is looking to slow down its interest rate hike pace.

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If the actual data is better than the forecast, the currency typically appreciates. If the release comes in worse than expected, the currency tends to depreciate. JP Morgan has extended its lead as top foreign exchange options dealer in the rankings for US mutual funds in the second quarter of the year. Volatility could be the name of the game over the next few days due to the protests in Forex brokers China, speeches from Fed officials including Jerome Powell, and top-tier economic data. By Harry Robertson LONDON – The pound has pulled off its biggest monthly increase against the U.S. dollar since July 2020 in November, although its rally was eclipsed by peers such as the yen and the Swiss franc. The week will have the biggest event in the US political process over the last two years.

Trading the news

It should be noted that the latest chatters over the likely policy tightening by the Bank of Japan in 2023 highlight today’s speech from BOJ Governor Haruhiko Kuroda. China’s official manufacturing PMI is seen lower at 48.9 vs. the prior release of 49.2. It is worth noting that China is the leading importer of oil and a slowdown in manufacturing activities in China could have a significant impact on oil prices.

Break below $1,766 could trigger a fresh downswing

Furthermore, Germany’s Unemployment Rate rose to 5.6% in November versus 5.5% market expectations and prior. ethereum price usd The details suggest that the Unemployment Change arrived at 17K versus 13K expected and 8K previous readout.

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