FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

FOMC, SNB And BoE Meetings

18 March 2019

A busy week for the financial markets is coming up.  Here’s a quick recap of the market-moving events we can expect.

Central Banks

The week ahead will see the US Federal Reserve and the Bank of England holding their respective monetary policy meetings. Both are expected to leave interest rates unchanged.

The Swiss National Bank is also due to hold its quarterly monetary policy meeting this week. We expect no changes here either, as the SNB will be maintaining the 3-month LIBOR rate at -0.75%.

Brexit & The Eurozone

Given that the UK parliament voted down PM May’s Brexit deal once again, the uncertainty continues. This could see the BoE focusing more on the Brexit outcome rather than monetary policy at the moment.

Meanwhile, Flash services and manufacturing PMI reports will be coming out from the eurozone. These will give us a glimpse into the business activity for the month of March.

New Zealand Growth

The fourth quarter GDP report from New Zealand will be coming out this Wednesday during the overnight trading session. Expectations show that the quarterly GDP growth rate was around 0.3%during the three months ending December 2018. The data is expected to show a slowdown in New Zealand’s economy through 2019 despite some temporary factors such as the energy sector.

The slower pace of growth for the country stands in contrast to the Reserve Bank of New Zealand’sforecast of a 0.8% increase. The RBNZ estimated this figure during the February monetary policy report.

In the September quarter, New Zealand’s GDP advanced 0.3%. On an annualized basis, New Zealand’s GDP for 2019 is expected to slow to a pace of 2.7% compared to 3.1% during the third quarter of 2018.

Besides the GDP data, the fourth quarter current account deficit report will be coming out a day earlier on Wednesday. Economists forecast that the current account deficit will widen to about 3.9% of the GDP, marking a six-year high. This comes amid lower terms of trade and higher import volumes.

FOMC Preview

The U.S. Federal Reserve bank will be concluding its two-day monetary policy meeting on Wednesday.The central bank will be releasing its monetary policy statement along with economic projections and the FOMC’s dot plot on interest rates. The Fed Chair, Jerome Powell will also be holding a press conference later in the day.

Expectations point to the fact that the Federal Reserve will be keeping interest rates unchanged at this week’s meeting. The Fed funds rate currently stands at 2.50% – 2.25%. The central bank last hiked rates in December 2018 and the March meeting will mark a full quarter where interest rates were not changed.

The decision to leave interest rates as they are comes as the latest data showed that consumer prices eased.

Headline inflation as of February slowed to a pace of 1.5% from 1.6% on an annualized basis. Core inflation was also eased to a pace of 2.1% from 2.2% previously during the same period.

Meanwhile, economic reports point to the fact that the US economy grew at a much slower pace compared to the fourth quarter of last year. According to the initial estimates, the US GDP advanced 2.6%during the three months ending December 2018.

However, data shows that this could be revised lower. The first quarter GDP expectations are at below 2.0% which would mark a slower pace of increase. As a result, Fed officials are likely to remain very cautious on forward guidance. Most likely, they’ll state that rate hikes will be data dependent.

Adding to the Fed’s woes, the February jobs report showed that the U.S. economy added only 20,000 jobs during the month. This marked one of the slowest pace of job gains in recent years.

Despite wages rising and unemployment falling, the weaker pace of job gains has dented sentiment. As a result, investors will be looking to forward guidance and the Fed’s projections on the economy.
Back in December, the Fed signaled two rate hikes in 2019, which will be closely watched for any changes to these projections.



The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

31 Oct 2022

XAU/USD juggles around $1,710 as investors await US NFP
XAU/USD juggles around $1,710 as investors await US NFP

Gold price (XAU/USD) is displaying topsy-turvy moves in a narrow range of $1,709.35-1,713.42 in the early European session. The precious metal is displaying a lackluster performance...

7 Oct 2022

Positive mood stalls on the “pivot” trade
Positive mood stalls on the “pivot” trade

USD slid against most of its major peers. The DXY closed a tick above its lows of 110.05. Resistance is at 110.76 while next support is 109.29. GBP gained for a sixth session in a row, a winning streak not seen since April 2021...

5 Oct 2022

OctaFX glances at current economic shifts - the good, the bad, and the strange
OctaFX glances at current economic shifts - the good, the bad, and the strange

Pandemics and health crises, political tensions, geopolitical tension flashpoints popping up, Western sanctions on significant European and Asian economies, and grave tensions between...

3 Oct 2022

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Editors' Picks

IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
MultiBank Group information and reviews
MultiBank Group
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.