About ForexMart!

[luisforexmart]

US Treasuries Whipsaw as FOMC Minutes Shifts Focus on USD and Fiscal Policies
US Treasuries careened between losses and gains after the minutes from the FOMC meeting last December showed that majority of the Federal Reserve’s officials have shifted their focus on slowing down the frequency of interest rate hikes. The minutes also revealed that various risks from the central bank’s fiscal policies is seen as a catalyst for speedier economic growth. The minutes of the FOMC showed a docile hawkishness but lacked any dovishness in its stance.

[luisforexmart]

Inflation rate in the Eurozone Rack Up
The inflation rate in the European region had increased, reaching its highest pace after three years. The surge is driven by the price hike for alcohol and tobacco, energy and food.
Based on the report from the Eurostat, the inflation percentage for December gained 1.1% which is notably higher from November’s result of 0.6%.
The highest rate occurred last 2013 in the month of September by which the result is also 1.1%. The final outcome is higher-than-expected which made the ECB’s target less than 2%.
The energy prices surge by 2.5% yearly, while the value of food and intoxicants grew by 1.2% year over year. Moreover, the energy costs rose due to OPEC’s resolution to decrease the production output.
The sharp jump lessened the fears of Europe regarding the possible deflation which could weakened the eurozone’s economic growth. Meanwhile, other core prices compelled by world markets had a limited rise from 0.8% to 0.9% only, this little progress would mean that the December’s inflation is “short-lived” according to analysts.

[luisforexmart]

Countermeasures of China to Curb Yuan in 2017
Yuan rallied this year especially the offshore trading and China is creating its contingency plan to curb the capital outflows for 2017. The offshore yuan climbed 0.9 percent to 6.8958 against U.S. dollar which is the highest increment since January 2016.
This plan was thought to counter recovering U.S. dollar while country’s capital outflow increases. Moreover, the ongoing threat from changes in U.S. policies regarding exports under Trump’s presidency. China might also sell U.S. Treasuries this year if necessary to secure the currency. This is predicted to expand the supply for foreign exchange within the onshore market and in return would support yuan in the short term.

[luisforexmart]

Pound Surges, USD Plummets after Trump, May Comments
The sterling pound finally increased in value after a long slump after UK PM Theresa May outlined her plans for the hard Brexit process, therefore clearing up some of the Brexit-related confusions and placating investors. Meanwhile, US president-elect Donald Trump has recently commented on the strength of the dollar, saying that the USD’s current value might be “too strong” for the US economy to handle. This has then prompted USD investors to vacate the dollar and move to riskier assets such as stock markets and has caused the dollar to drop in value.

[luisforexmart]

India’s Demonetization Impacts the Economy

India presented consecutive growth for less than 7 percent in the past three-quarters during December 2012 and June 2013 based on the statement from an India economist at Soc Generale, Kunal Kumar Kundu.
SocGen also mentioned the fiscal growth rate of the country for 2017 is 6.6 percent versus the previous result of 7.3 percent. The bank further expects for a 7.2 percent, lesser than the earlier prediction of 7.7 percent, for the fiscal year 2018 which will end on March 2019.
India laid out its demonetization program since November with more than 50 days from now, causing an 86% impact on the currency circulation within the country.
The 500 ($7.35) and 1,000 ($14.70) rupees were replaced with 500 and 2,000 rupee notes.
The Jakarta-based investment firm reviewed the research from All India Manufacturers' Organization (AIMO), which showed that there are 35% job losses within the small scale and micro industries and suffered 50% decline in the revenue, 34 days after the demonetization program is set forth. However, in March 2017, the figures will likely drop into 60% in employment while 55% reduction in revenue as stated by AIMO, it’s because these sectors are highly dependent on cash transactions.

[luisforexmart]

Chinese Government’s Countermeasure for Decline in Home Prices
Residential property in Guangzhou climbed by 0.7 percent in December according to the report from Bureau of Statistics’ data. It is the only city who opposed the deflation program of residential properties in China.
Twenty local and provincial officials have seeked out counter measures to control loans and restrict second-home buyers to lessen the risk of elevated prices that may lead into dire repercussions. When this countermeasure has been implemented home prices from first and second tier cities steadied implying a positive change for the economy. As for the city of Beijing, he pledged that the prices of new homes will be kept unchanged for this year.

[luisforexmart]

Fed's Yellen Says Future Rate Hikes Dependent on US Economy
Federal Reserve Chair Janet Yellen has stated that the Fed might consider implementing a Fed rate hike in the near future provided that the US economy maintains its presently positive economic outlook. However, with the incoming Trump administration, Yellen has reiterated that the FOMC has yet to see the incoming administration’s policies and how these could alter the Fed’s current outlook. This particular statement has created support for the US dollar in the past trading sessions, while Treasuries dropped in value.

[luisforexmart]

January 19, 2017
Australia’s Increase in Employment
The Australian Bureau of Statistics released an official data on Thursday showing an upsurge in employment. The number of people employed increased by 13, 500 which is higher than the expected figures of 10, 000. The number of people who work full time expand by 9, 300 and the participation rate reached 64.7% in December while 64.6% for November.
Annette Beacher, Chief Macro Strategist of Asia-Pacific Research at TD Securities, mentioned that there were about 92,000 additional jobs created last year. However, these jobs are only part-time because full-time occupation declined in 2016.
Moreover, the stability of the labor market will be based on the actions of the Reserve Bank of Australia for 2017, according to an economist at Morgan Stanley, Daniel Blake.On one side, there are few analyst who believes on the positive impact of the employment statistics.

[luisforexmart]

Bundesbank posts two percent Inflation rate for Germany
Based on the report of Deutsche Bundesbank, inflation is predicted to surge for this month. Earlier in December, the consumer price index rose together with the high energy cost which began 5 years ago. The German inflation marks two percent according to the report of Bundesbank published on Monday. The recent steep increase in the average prices of the oil products caused for the inflation to escalate to two percent for January.
However, the European Central Bank targets with an inflation rate below 2% because it is the most suitable percentage in order for the euro economy to further develop.
On the previous month, the price level of consumer expenditure grew by 1.7% after three and a half years which resulted for high-priced petroleum products. This also made oil companies including the OPEC to imply for production cuts in order to improve the price of the basic material for oil.
On the other hand, analysts predicted for 1.8% inflation in 2021. The German economy continued to improved according to Bundesbank as the country’s industry remained “favorable”. The 2016 GDP expanded to 1.9% after five years and for this year, the bank expects for the same result.

[luisforexmart]

USD Drops as Trump Begins Pulling Out US from Trade Agreements
The US dollar continued its losing streak after President Trump signed an Executive Order which will pull out US from the Trans-Pacific Partnership. Next in line could possibly be NAFTA, which Trump stated is now undergoing renegotiations in addition to implementing a high-rate border tax in spite of losses incurred after a Fed official stated his preference for high-frequency rate hikes in order to prevent the Fed from lagging behind in terms of economic movement.

[luisforexmart]

Mexico Faces New Probable Risks From New U.S. Policy
Mexico cautions that changes in policies under the new U.S. administration increases risks obstructing production chains between the two countries. This could lead to a drop in exports and direct foreign investments according to the Mexican Central Bank Governor Agustin Carsten.

Although it is not expected to have higher risks for an inflation due to racked up demand curbing the convergence of the headline inflation rate with the Central bank’s target in 2018. At the same time, the easing in fuel prices could have a transient effect to the economy but it could be worse and drastic impact on inflation.

[luisforexmart]

Slow Economic Growth for South Korea in Fourth Quarter
The Bank of Korea confirmed on Wednesday the economic growth of the sovereign state fell back during the fourth quarter of the previous year. Further sharp decline took place in the construction spending and personal consumption expenditure as the political upheaval intensifies.
The period got affected by the illegal involvement of President Park Geun-hye regarding the corruption scandal. Park got impeached by parliament of South Korea, pronouncing their judgment in a court proceeding. This political instability triggered fears for the probable “policy paralysis” and caused for the Consumer Confidence Index to slump for the third time up to this month.
The growth is approximately 0.4 percent based on Seasonally Adjusted Annual Rate (SAAR), quite from the 0.6 percent result in September and 0.8 percent surge for the month of June.
While the construction investment grew less with a seasonally adjusted 1.7 percent from October to December. On the other hand, the private consumption gained 0.2 percent only and remained lesser by 0.5 percent during the September quarter. Moreover, the annual GDP rate increased by 2.3 percent in the last quarter but comparatively lower from 2.6 percent hike in third quarter.

[luisforexmart]

US Stocks Deliver Mixed Signals as Dollar Strength Returns

US stocks stopped its rallying trend during Thursday’s trading session after investors gathered a string of corporate data which created ambiguities with regards to the overall state of the US economy. Meanwhile, the Mexican Peso dropped in value after arguments regarding the building of a Mexican border heated up during the past few days. Meanwhile, US Treasuries managed to recover from its slump during the previous session. The recent bullish tones exhibited by the financial market had somewhat eased following the rising dangers of the economic tension between US and Mexico, which is currently threatening to damage one of the biggest trade relationships in the world.

[luisforexmart]

Japan’s December Retail Sales Fell Short from Expectations
The Bank of Japan is scheduled to set its monetary policy after a two-day meeting, ending the speculation of its reduction of rates and its economic stimulus after its years of policy changes.
The results of Japanese retail sales did not meet the expectations released on Monday. It climbed 0.6 percent last month which is lower than the median market forecast increase of 1.3 percent.
Tenuous consumer spending continues to beleaguer Japan’s economy although for the past third quarter for the whole July to September driven by high demand for exports despite low domestic activity. Japan’s Core Consumer prices declined to its slowest pace for almost a year signaling possibility for inflation and domestic demand to recover in the succeeding months.

[luisforexmart]

BB to keep rates on hold, Kabir Said
The central bank of Bangladesh maintained its key policy rates on January 29, Sunday according to Governor Fazle Kabir, noting the comprehensive Macro stability coupled with a stable inflation forecast. As mentioned by the bank’s governor, the predicted average inflation was estimated from 5.3 to 5.6 percent in June which is lower than the 5.8 percent goal for the fiscal year of 2016-17.
Kabir also added that the increasing value of the global commodities for this year would probably weigh an upward pressure on the domestic prices, he said in a press conference, marking the quantitative measure of the monetary policy from the month of January to June. Moreover, the Bangladesh Bank (BB) have trimmed its interest rates with a half percentage point in January 2016.
The average rate of inflation reached 5.92 percent during the fiscal year 2015-2016 which is the lowest recorded in 12 years. It is because of the steep decline in the commodity prices and the output in agriculture from South Asian countries, approximately 160 million individual.