Archive for Economics & Fundamentals

How the French Elections May Affect the Financial Markets

By Admiral Markets On 18 March, the Constitutional Council of France announced that 11 candidates had fulfilled the conditions to participate in the first round of presidential elections, due to be held on 23 April. The Constitutional Council noted that the first round candidates will be François Fillon (The Republicans); Benoît Hamon (Socialist Party); Emmanuel […]

The Real Story of China’s Strong First-Quarter Growth

By Dan Steinbock After the solid first quarter performance, the central government may be in the unique position to achieve its growth target –  even while tightening. In the first quarter, China’s economy grew 6.9 percent; slightly faster than expected and led by strong expansion at factories. What the first quarter data reflects is solid […]

The Australian Dollar is back to its weekly lows. Overview for 18.04.2017

Article By The AUD/USD pair is falling significantly on Tuesday after the RBA’s comments. The Australian Dollar found itself in a weak position against the USD on Tuesday. The current quote for the instrument is 0.7545. This morning, the RBA published its April Monetary Policy Meeting Minutes. on the whole, the report was pretty […]

The Philippine Peso Squeeze

By Dan Steinbock In the first quarter, the Philippine peso depreciated against the US dollar. Internationally, this was attributed to President Duterte’s policies. In reality, it has a lot to do with the expected US rate hikes. But there is a reason why misguided geopolitics now overshadows Philippines. In the recent quarter, the Philippine peso […]

Optimism for China economy as Trump Trade continues to fade

Article by ForexTime Reaction to China GDP data Optimism over the underlying momentum of the China economy in 2017 has continued to improve, following official figures showing that GDP output grew by 6.9% over the first quarter of 2017. This represents stronger growth than what was expected and does point towards the China economy making […]

EUR/USD: Trump shows that Draghi is not the only jawboning master

By Macroeconomic overview: President Donald Trump said that his administration will not label China a currency manipulator, backing away from a campaign promise, even as he said the U.S. dollar was “getting too strong” and would eventually hurt the economy. The United States last branded China a currency manipulator in 1994. Under U.S. law, […]

Brazil cuts rate 100 bps, sees rate at 8.50% end-2017

By     Brazil’s central bank cut its benchmark Selic rate by 100 basis points to 11.25 percent and said the higher pace of monetary easing was appropriate in light of forecasts that point to a policy rate of 8.5 percent by the end of 2017 with the rate remaining at that level until […]

Argentina raises rate 1st time this year as inflation rises

By     The Central Bank of Argentina (BCRA) raised its monetary policy rate by 150 basis points to 26.25 percent, the first change in the rate since it was introduced this year, saying it considers it “appropriate to tighten liquidity conditions to ensure that the disinflation process in the coming months is consistent […]

Trump, Sterling and Gold in focus

Article by ForexTime Ongoing geopolitical tensions across the globe and heightened political risk in Europe have limited appetite for riskier assets this week, with global stocks now on the back foot. Asian share concluded in the red on Wednesday, as the uncertainty from world events left investors on edge. Although European markets have displayed some […]

The Trump-Xi Summit Paves the Way to New Realism in US-Chinese Trade

By Dan Steinbock Despite preliminary pessimism, the Trump-Xi Summit showed greater trade pragmatism than initially expected, even though it was overshadowed by a raw display of US military power. President Donald Trump says he developed a “friendship” with President Xi Jinping at Mar-a-Lago. However, U.S. missile attacks against Bashar al-Assad’s forces in Syria overshadowed the meeting. Apparently, the White House hoped […]

Sterling volatile as UK inflation holds steady

Article by ForexTime Sterling was volatile on Tuesday, with prices oscillating between losses and gains after markets digested the UK’s steady 2.3% inflation figure for March, which was the highest level since September 2013. The ongoing currency weakness created by Brexit, coupled with rising oil prices has elevated inflation above the Bank of England’s 2% […]

Geopolitical concerns boost save havens

Article by ForexTime Investors are dumping risk assets early Tuesday as geopolitical tensions remained the key catalyst shaking the markets. The move by China to send 150,000 troops to North Korea border over fears that Trump may strike Pyongyang and comments from White House Press Secretary Sean Spicer that additional U.S. intervention could be triggered […]

US Dollar and Chinese Renminbi: Mysteries Revealed

By Dan Steinbock The Trump administration’s exchange-rate hawks contend that the US should designate China as a “currency manipulator.” In reality, the problem is the strengthening dollar, despite massive debt US owes to foreign countries. Before the Trump-Xi Summit, the White House has often warned about “currency manipulators” while targeting US trade deficits. After the […]

Your Weekly Fundamental View (Apr 10–14)

By Admiral Markets Need to know The main focus of this week is on CAD. The BOC (Bank of Canada) will decide the overnight rate followed by a rate statement. This event should bring volatility to CAD currency basket. Let’s take a look at the important fundamentals events this week. The BOC is expected to […]

Geopolitical risks, additional factor to consider the week ahead

Article by ForexTime A U.S. missile strike in Syria, a weaker than expected jobs report, and Fed planning to shrink its balance sheet, all did little to move markets significantly last week. U.S. stocks fluctuated between gains and losses throughout the week, Treasuries traded in a similar pattern, gold erased gains after jumping to a […]

Investors on edge ahead of NFP

Article by ForexTime A strong sense of unease infiltrated the financial markets during trading on Friday with investors staying clear of riskier assets after reports were released that the U.S military launched an airstrike on Syria. The possible threat of geopolitical tensions heightening from the airstrikes has created a risk-off trading atmosphere which left Asian […]