Archive for Economics & Fundamentals

Bitcoin Rockets to Multi-Year High of $1,132 as Winklevoss ETF Nears SEC Decision

By Jason Hamlin, Bitcoin was one of the best performing assets that you could own during 2016. The price rocketed from $428 to $968, an advance of 126%. It has since continued higher and just hit its second highest price ever at $1,132 today. In fact, bitcoin has topped $1,000 for the longest stretch in history over the […]

EUR/USD: As we had expected, FOMC minutes were not so hawkish

By Macroeconomic overview Many Federal Reserve policymakers said it may be appropriate to raise interest rates again “fairly soon” should jobs and inflation data come in line with expectations, according to the minutes of the Fed’s last policy meeting released yesterday. Fed Governor Jerome Powell, one of the voting members at the central bank’s […]

Markets digest balanced Fed minutes

Article by ForexTime Global markets were relatively unmoved during late trading on Wednesday after the slightly hawkish minutes from the Federal Reserve failed to convince participants of a March interest rate hike. Although many Fed members have repeatedly voiced that it may be appropriate to raise interest rates again “fairly soon”, it is the lack […]

Brazil cuts rate 75 bps, sees easing to 9.5% end-2017

By     Brazil’s central bank lowered its benchmark Selic rate by another 75 basis points to 12.25 percent and reiterated its guidance that further rate cuts and possible changes to the pace of easing will continue to depend on the forecast and expectations for inflation.    The Central Bank of Brazil has now […]

USD bears strike on FOMC minutes

Article by ForexTime FOMC day is always a big one and the market was not shy about its views after the dollar rise and then retreated sharply as it expected a more positive view on the possibility of a rate rise. While the view was that a rate rise would be “fairly soon” it’s not […]

Global optimism revives risk-on sentiment

Article by ForexTime The renewed optimism over global economic growth has rekindled investors’ risk sentiment, resulting in global equities lurching to all-time highs this week. Asian markets were firmly bullish during trading on Wednesday with the risk-on trading mood encouraging participants to propel European markets to uncharted territories. Wall Street may be set to benefit […]

Will Trump Policies Strengthen or Weaken the US Dollar?

By Taylor Wilman The foreign exchange market is driven by among other factors; the economic policies adopted by a country, geopolitics, normal demand and supply of a given currency for international trade as well as speculation by forex traders. Geopolitics and international trade are both again influenced by the economic policies a country adopts from […]

EUR/USD: Investors shrugged off Eurozone data, eyes on FOMC minutes today

By Macroeconomic overview U.S. Federal Reserve meeting minutes due later on Wednesday could either reinforce or undermine recent hawkish comments from central bank policy makers that have raised bets on a rise in rates as early as next month. Cleveland Fed President Loretta Mester said on Monday that she would be comfortable raising rates […]

EUR/USD: Eurozone economy gathers momentum

By Macroeconomic overview Cleveland Federal Reserve President Loretta Mester said on Monday she would be comfortable raising interest rates at this point if the economy maintained its current pace of performance. Mester, seen as one of the more hawkish Fed officials, said the economy was on a “sound footing”. She also cautioned against asking […]

Global risk appetite remains strong

Article by ForexTime The Australian economy continues to be a roller coaster for any Aussie bulls, but one thing is certain the markets are not paying too much attention at present with the AUDUSD being one of the stand out performers in 2017 so far. However, markets should be paying attention to what is going […]

Will currencies continue to diverge from fundamentals the week ahead?

Article by ForexTime Monetary policy guidance, and strong U.S. data failed to provide another push higher for the greenback last week. Fed Chair Janet Yellen made a blunt statement in her testimony before Congress that it would be unwise to wait too long to tighten monetary policy, and several of her colleagues followed by similar […]

Beijing 2022 and China’s Second ‘Coming-Out Party’

By Dan Steinbock After a decade of huge international events, many Chinese people suffer from ‘gala-fatigue.’ So has the case for Beijing Winter Olympics 2022 dimmed as well? Not necessarily. When the International Olympic Committee (IOC) awarded the 2022 Winter Games to Beijing, in a joint bid with the city of Zhangjiakou in North China’s […]

NZD looks to weaken

Article by ForexTime The New Zealand dollar has found itself under pressure in recent days as the market has started to hedge a little while it waits on the next steps for the US economy. Trumps term has seen large speculation around fiscal stimulus and tax changes, which so far have not materialised and in […]

Robust U.S. data fails to lift the greenback, what’s wrong?

Article by ForexTime The strong growth in U.S. retail sales and the surge in consumer prices were expected to continue pushing the U.S. dollar higher on Thursday, but what happened was exactly the opposite, leaving many traders questioning the greenback’s uptrend. The past 24 hours were very interesting in currency markets, not just on the […]

Hawkish FED does little to damage equity appetite

Article by ForexTime The US economy is making waves as usual with Yellen’s speech to the Senate today showcasing that the FED is expecting to make some large moves this year. One of the key points from Yellen was that the FED could indeed (as expected) lift rates more than a few times this year, […]

GBP/USD: Long for 1.2700, Yellen in the limelight

By Macroeconomic overview British consumer prices rose 1.8% yoy, slightly below expectations for a 1.9% rise. The Bank of England forecast earlier this month that inflation will rise above 2.7% in around a year’s time as Britain’s vote to leave the European Union pushes up the cost of imports. Excluding oil prices and other […]