In Asia today, the focus of news from China-recent strict measures taken by the state concerning large banks and private companies to contain risky borrowings abroad, led to riots in the financial sector. The active sale of shares continues, and the head of the Commission on the Regulation of Banking Activities of China Guo Shuking announced his likely resignation. Such a development could lead to a rapid fall in the national currency. Nevertheless, the companies that touched on the above-mentioned events are trying to calm investors by noting that these are only standard procedures, the purpose of which is to ensure the security of the national currency. Continue reading
This week will bring a lot of fundamental news that will cause market fluctuations and create excellent trading opportunities for traders. We identified 3 main events of this week:
1. The Reserve Bank of Australia will release their Cash Rate and Rate Statement on Tuesday. The interest rate charged for the transfer of overnight transactions between financial companies, according to preliminary forecasts, will remain unchanged: 1.50%. Such a result is laid in market prices, therefore any surprises will lead to fluctuations in the national currency rate: the rate hike will help the Australian dollar to grow, and the reduction will help it to fall. The decision on the interest rate will indicate the views and concerns of the RBA. Continue reading
Among the first will be published the Index of the business climate IFO Germany with a preliminary forecast of 112.9. The index will show the degree of confidence of producers, construction companies, wholesale and retail trade enterprises in the future of the country and the EU as a whole, since Germany is the largest economy of the euro area. If the publication exceeds expectations, then the confidence of entrepreneurs has increased, which will contribute to the growth of the euro. The disappointing indicator will become an indicator of the decline in confidence, against which the euro’s rate will fall.
In the UK there will be a Hearing Report on inflation, which is of particular interest to traders, as they are able to give markets an idea of the economic climate in the UK after Brexit. Continue reading
The week ahead has many a fundamental news release and events to look forward to, and the numerous trading opportunities they create. Let us take a look at our top 3 picks:
1. Tuesday is considering the release of the inflation report in the UK, which will outline the views of the Bank of England on the current state of inflation and growth in the UK economy. The stock indices of GBP and UK are volatile during the publication of the report, which, if it is significant enough, will lead to a long-term asset movement. If the report shows that the UK economy is growing and inflation is at least stable to growth, we will see a positive impact on the pound, while the report that the UK economy is cooling will lead to a pound sale.
Since the elections in the UK will take place literally within a few weeks, the two main parties are fighting for dominance, as they hope to take the lead in the elections and guide the countries to the future. In its present form, Article 50, the formal initiation of Brexit negotiations took place, and the two sides split in how to conduct the business. The current Prime Minister, May, took a strict approach to the negotiations, hoping to play ball. She stated that she would get the best possible deal for the UK or not at all, all by marginalizing Wales and Ireland, without considering their views on how Braxit should be handled.
On the other hand, the Labor Party adopted a more general position, implying that they see the role of positive relations between the EU and the United States in promoting the best solution that is acceptable to both sides and does not take an aggressive all or nothing position.