Tuesday , October 24 2017
Home / Forex-News

Forex-News

Bank of England keeps us waiting 3 weeks – 3 reactions

Bank of England

The Bank of England decided not to cut rates in a move that surprised many and boosted the pound. However, it kept us waiting for the next decision, just three weeks away. Here are three reactions: Here is their view, courtesy of eFXnews: BoE On Hold As We Expected; Paving The Way To An August Rate [...]

The post BOE keeps us waiting 3 weeks – 3 reactions appeared first on Forex Crunch.

Read More »

Canada loses 0.7K jobs – USD/CAD up (also on NFP)

Canadian Dollars

A mixed jobs report from Canada: the nation lost 0.7K jobs instead of gaining ones. However, the unemployment rate dropped to 6.8%. The participation rate slides to 65.5%, and that explains the drop in the unemployment rate. All in all, a slightly disappointing publication from Ottawa.  USD/CAD is at 1.3030, up, but that’s mostly because of the great [...]

The post Canada loses 0.7K jobs – USD/CAD up (also on NFP) appeared first on Forex Crunch.

Read More »

Bank of Japan preparing for losses – Nikkei

Bank of Japan

According to an article from Nikkei, the Bank of Japan set funds aside for the first time in order to prepare for losses from its purchase program that could take place once the easing program ends in the future.

Key Quotes from the article:

“The Bank of Japan likely set aside funds for the first time to prepare for losses on its huge holdings of Japanese government bonds should the central bank end its monetary easing policy in the future.”

“The bank is thought to have reserved about 450 billion yen ($4.07 billion) for the year ended in March. The amount will become known when the BOJ releases financial statements as early as next week.”

“Though BOJ Gov. Haruhiko Kuroda has indicated that the bank could expand easing if it faces difficulty achieving its inflation target, the creation of the reserves is a move to prepare for an exit from monetary easing.”

“The BOJ pays most of its net income to the government, and this payment will decline if the bank sets aside reserves. Furthermore, the central bank's profits have suffered from the lower value of foreign-currency assets due to a stronger yen. As a result, payments to the government are estimated at 400 billion yen for fiscal 2015, down sharply from 756.7 billion yen in the prior year.”
For more information, read our latest forex news.

Read More »

UK data ahead: Carney and GDP – Lloyds

Bank of England governor Mark Carney

Analysts from Lloyds Bank point out that next week main events in the United Kingdom will be the testimony of Mark Carney on Tuesday and the second reading of Q1 GDP on Thursday.

Key Quotes:

“In the UK, Bank of England Governor Carney (Tue) will appear before the Treasury Select Committee to answer questions on the latest Inflation Report. He will no doubt face questions about the economic forecasts, including his views on the potential risks surrounding the EU referendum.”

“Data wise, we expect the second estimate of UK Q1 GDP (Thu) to be unrevised at 0.4%q/q, though there will be the first expenditure breakdown of the figures which should show consumer spending remaining firm and a rebound in investment after the contraction in Q4.”

“The GfK consumer confidence index (Fri) will provide a more up-to-date indicator of sentiment in the current quarter. The index fell to a 16-month low of -3 in April, though we look for stabilisation at the current level in May. BBA figures on house purchase loans (Thu) will also be watched to gauge the impact of the Chancellor’s stamp duty levy on second homes which began in April.”
For more information, read our latest forex news.

Read More »

Low oil prices put strains on Gulf currency pegs

Gulf Currency

Weak oil prices pose a threat to Gulf Arab states’ currency pegs against the dollar, but the energy-rich region is unlikely to abandon the policy yet, analysts say. Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates all keep the values of their currencies fixed against the greenback, while ...

Read More »

ISIS ‘making millions’ by gaming forex markets

FILE - This undated file image posted on a militant website on Jan. 14, 2014, shows fighters from the Islamic State group marching in Raqqa, Syria. T (AP Photo/Militant Website, File)

The militant group that calls itself Islamic State (ISIS) is exploiting national banking operations in Iraq and could be making up to $25 million a month in Middle Eastern money markets, according to experts. Speaking to a U.K. parliamentary subcommittee set up to examine how Britain could help disrupt ISIS ...

Read More »