Archive for Economics & Fundamentals

Brazil cuts rate 25 bps, easing in May seen appropriate

By        Brazil’s central bank lowered its benchmark Selic interest rate by another 25 basis points to 6.50 percent and said additional easing at the next meeting of its monetary policy committee would be “appropriate” as this would mitigate the risk that inflation would not meet its target.       However, the […]

Neutral FOMC leads to dollar sell-off

Article by ForexTime Governor Powell did his first FOMC today and to nobody’s surprise rates were lifted to 1.75% (1.50% prev), this lift of 25 basis points was in line with expectations, but the real show was on the question time and statement shortly after it all.  Many in the market had been expecting Powell […]

UAE raises discount rate, repo rate 25 bps

By      The central bank of the United Arab Emirates raised its rates on benchmark certificates of deposits and the repo rate on short-term borrowing by 25 basis points each, in line with the U.S. Federal Reserve’s 25 point hike in its fed funds rate earlier in the day.     The Central Bank […]

Kuwait raises rate 25 bps in first hike since March 2017

By       Kuwait’s central bank raised its benchmark discount rate by 25 basis points to 3.0 percent, its first rate hike since March 2017, following the U.S. Federal Reserve’s rate hike earlier in the day.     The Central Bank of Kuwait (CBK), whose currency is pegged to the U.S. dollar, said the […]

Fed raises rate 25 bps, sees 3 hikes in 2018 and 2019

By      The Federal Reserve, the U.S. central bank, raised its benchmark federal funds rate by another 25 basis points to 1.5 – 1.75 percent, as widely expected, and retained its forecast for raising the rate by a total of three times this year and also expects to raise the rate three times […]

The Economic Moral Hazards of the International Criminal Court – and the Philippines Withdrawal

By Dan Steinbock   As the Philippines is withdrawing from the International Criminal Court, ICC is blaming the Duterte government. In reality, the withdrawal is still another example of the erosion of the ICC’s credibility, its failure at judicial independence and gross bias against the emerging world. In February, the ICC said it was investigating […]

Trading the Fed’s interest rate decision

Article by ForexTime Investors across all asset classes are cautiously awaiting the key risk event of the week; the Federal Reserve monetary policy decision. Markets are almost certain that the Fed will be raising interest rates by 25 basis points later today, suggesting that a rate hike has been already priced in. Instead, the focus […]

Its Fed day! But keep an eye on UK jobs report

By Orbex Blog Daily Forex Market Preview, 21/03/2018 The U.S. dollar was seen pushing higher on the day reversing the gains from Monday’s declines. Investors were seen bracing for the Fed meeting due later in the day. Although the markets have fully discounted a 25 basis point rate hike, the Fed’s dot plot and economic […]

Chile holds rate, sees lower inflation from strong peso

By       Chile’s central bank left its monetary policy rate at 2.50 percent but said inflation will be lower than expected due to a strengthening of the peso and it would be monitoring this situation “with special care,” as this may jeopardize the convergence of inflation to its target.      On […]

Powell to lead first FOMC

Article by ForexTime It’s a great time to be a trader tomorrow as the new era of Governor Powell comes into full force and markets are expecting the first FOMC he chairs to bring about a rate hike, lifting the current one of 1.25% to 1.50%. This would be a polarising move and certainly set […]

AUD Still under Pressure

The Australian dollar keeps going down. RBA meeting turned negative for the AUD. With no other important stats and info, the Aussie remains under control of the bears. The AUD is again going down against the US dollar after taking a short break. The Aussie was unable to get stabilized even after the RBA meeting […]

Morocco maintains rate and raises growth forecast

By       Morocco’s central bank left its monetary policy rate at 2.25 percent, citing a positive reaction of financial markets and institutions to the introduction of a more flexible exchange rate system in January along with an improving economy and moderate inflation.      The Bank of Morocco, or Bank Al-Maghrib (BAM), […]

How Transparency International’s Corruption Perceptions Fail

By Dan Steinbock The conventional view is that advanced economies have subdued corruption, which burdens mainly emerging countries. An alternative view is that dominant corruption indices are biased against emerging economies. In the most recent Corruption Perceptions Index (CPI), the rankings are topped, as often before, by the tiny Nordic countries, Western Europe, the US […]

Tajikistan cuts rate 75 bps, sees no need for tight policy

By       Tajikistan’s central bank lowered its benchmark refinancing rate by another 75 basis points to 14.0 percent, saying it no longer needs to continue with a tight monetary policy due to the lower risk of inflation and a gradual stabilization of the external economy.       The National Bank of Tajikistan […]

EU-UK strike transitory Brexit deal

By Orbex Blog Daily Forex Market Preview, 20/03/2018 The U.S. dollar was on the back foot yesterday. The euro was seen retracing it’s the gains strongly which gains came amid investor uncertainty ahead of the FOMC meeting due on Wednesday. Developments from Brexit included the EU and the UK striking a transitory deal. According to […]

Tech selloff drags down global equities

Article by ForexTime The steep losses in U.S. technology stocks were carried into Asian markets today with all major indices tracking Wall Street declines. Facebook made the headlines on Monday as reports over the weekend claimed that data from 50 million users was accessed without their permission. The stock fell 6.8% and wiped out almost […]