Andrea ForexMart

U.S. Treasury Yields Soar with Strong Dollar  The U.S. Dollar reached a six-month record high on Monday's Asian trading session because of Trump's planned fiscal policies and goals to drive growth. The uncertainty brought by the so called “Trumponomics” has made the financial market to buy dollars and sell U.S.  Treasuries which is expected to persist for some time. Although there might be correction near Thanksgiving.  For five years, the U.S. Treasury yields have reached a highest two-week gains. This includes all types of maturities which is an after-effect of U.S. Presidential election. People waiting what will happen next after Trump's victory has further boosted the greenback to thirteen and half year highs compare to basket of currencies.  Â

Asian Stock Market Traded Mixed Due to Dollar Easing  The Asian market were trading mixed yesterday morning as the U.S Dollar strengthen along with the bond yields that increased as well, consequent to the victory of Donald Trump that  further stimulated fund flows from various developing markets.  Despite of the softening of the yen, the Japan's Nikkei 225 rose up to 0.51% on the back of the broad based strengthening of the greenbacks after the election. While the benchmark Kospi Index of South Korea were able to bounce back and gain 0.05% following the prosecutor’s affirmation that President Park Geun-hye is associated in the political scandal.  On the other hand, the Chinese shares is in an upbeat as its global benchmark, Shanghai composite expand to 0.65%. The Hang Seng Index of Hong Kong  moved higher up to 0.46%. While Major economic news were released on Monday morning as the trade data of Japan for the month of October had dipped, the exports declined and the imports dropped 16.5%. The South Korea’s exports for the first 20 days of November had decreased with 0.25, imports plunged to 3.1%  While the petroleum products and other commodities made an upward momentum, the crude add up 0.83% and the Brent grew by 0.9%.  Â

The Number of Jobless Claimants in UK Grew by 9.8K Â The office for National Statistics of UK presented mixed data of unemployment rate which fall to 4.8% from the previous 4.9%, it is considered the lowest since the third quarter of 2005.. The Claimant Count Change presented a negative outlook as the number climb up to 9.8k in the month of October, the result is greater than the expected which is 2K only. Â Moreover, the data released last September got affected and modified as it rise to 5.6k with only 0.7K on the previous result. This occurrence showed some signals about the worsening conditions in the labor ministry. This complication further stirred the GBP/USD as it insignificantly slid downside. Â Â

Dollar Falls, Bonds Increase, Asian Stocks Fluctuate Prior to Yellen Statement  The USD lost a significant amount of its value as compared to other major currency pairs while Treasury yields surged and Asian stocks experienced fluctuations prior to the release of the US inflation data, as well as a testimonial from Fed Chairwoman Janet Yellen which is expected to determine market expectations on the US interest rate. Meanwhile, the EUR edged higher after a nine-day slump as the dollar index reverted back from its highest level reached in nine months. New Zealand and Australian stocks extended its gains, while benchmark Treasuries also inched higher. Crude oil prices fell as American stockpiles incurred more gains in the market.  Â

 US Dollar Drops, Asian Stocks Bounce Back as Trump Victory Shock Fades  For the first time in nearly four days, Asian stocks increased in value while the USD dropped from its five-month high against the Japanese yen due to investors questioning the possible overreaction of the financial market to Donald Trump’s recent win during the US elections. The MSCI Asia Pacific Index increased due to energy shares after crude oil prices rose to its highest levels in seven months after the OPEC finally agreed on proposed output cutbacks. For the major currencies, the KRW had the most gains after rebounding from its near-record lows since June 2016. The Japanese 10-year bond yields were also able to maintain its zero value after staying within negative territory for a total of eight weeks.

 The Highest-Ranking Russian Official Accused for Receiving $2M Bribe  The Economy Minister of Russia, Ulyukayev were accused for accepting payments after he approved the takeover of 50% stake of Bashneft to a giant oil company, Rosneft. According to the investigators, the Russian minister collected $2m (£1.6m) worth of bribe, however, Ulyukayev pleaded not guilty on the allegation.  Alexei Ulyukayev is considered to be the highest-ranking Russian official to be dismissed and arrested since the failed coup in 1991.  The minister was arrested Tuesday morning and expected to face eight to 15 years of imprisonment but he continued to denied the blame and described it as  “an act of provocation against a state official”. Moreover, the court allowed him to take a house arrest until January 15. President Vladimir Putin take an immediate action and impeached Mr. Ulyukayev since the 60-year-old minister broke the trust of Putin. The acting economy minister recently appointed was Yevgeny Yelin.

Morgan Stanley Bank Gained $10m After Stocks Rallied  Morgan Stanley acquired more than 10 million U.S. dollars equivalent to 8 million pounds of shares after Trump’s victory in U.S. presidential election. Stocks rallied in effect of post election and the bank, Morgan Stanley collected as much as a fifth of their collated earnings as their highest for more than a year.  After the election, this has been the best performance as stocks recovered from 2008 to 2009 financial crisis. The market sees Trump’s campaign to elevate inflation of infrastructures and Federal Reserve’s fiscal policies that further boost banks turnover.  Â

Chinese Industrial Production Rose But Retail Sales Slowed Down  The economic activity of China was presumed to stabilize last month, however, retail sales fall off due to worries about the outlook of the US-China trade frictions under the administration of President Donald Trump. Moreover, the industrial sector performed a better-than-expected 6.1% growth in the month of October while the retail industry dropped an estimated 10% sales.   China’s fixed-asset investment further acquire 8.3% increase for the past 10 months of the present year, this result exceeded the expectation from January to October seeing the government allocated infrastructure expenditures in order to reinforce growth as shown in the official data on Monday. Â

Better Global Economic Standing Despite Rise in Unemployment Rate  Recent data showed a 3% growth but this was because of short-term fleeting factors. The unemployment rate stayed low while the underemployment and long-term unemployment has increased with weakened nominal wage and inflation. This is in contrast of unemployment rates released by IMF saying that it increased were majority part-time.  Australia's economic status is performing better than other countries and it would get stronger if there will be more investments and invigorate business confidence. However if the investments remained subtle, company earnings would be affected and be in tension. Also, the consumer consumption would stay low if the job earnings would not increase.  The RBA should keep interest rate slow and maximize infrastructure spending to increase in employment rates in current global economic environment. Â

Higher Volumes of Exports Boosted Japan's Economy  The Japan's economy have seen greater improvement from the month of July until September due to a higher number of international trades. The country's GDP escalated to 2.2% within three months. Japan is greatly concern about the anti-free trade rhetoric supported by the newly-elect US President D. Trump since it is expected that this campaign would bother the Japanese region.  Subsequent to the results of the U.S elections, the yen curtailed versus the dollar. Hence, the country's good became cheaper in abroad, this brought positive talks for the foreign exporters. The world's third-largest economy accumulated a better-than- expected result of 0.5% while the forecast showed 0.2% only. However, some analysts who stated that the nation is relying much on exports and considered that these are windfalls only.  Â

U.S. Dollars Strengthens Unabatingly That May Lead to Inflation  Greenback continues to surge with the unexpected win of Trump that signals inflation to take place sometime in the future. It climbed as high as 99.247 on Monday during Asian session from 97 handle prior to election. His principles advocated during his campaign such as protectionism, changes in immigration, infrastructures and debt spending set inflation back to the market at the same time, this would cause the U.S. Dollars to further appreciate in value. The U.S. 10-year Treasury yield rose more than 2 percent from 1.80 percent before election. This surge is expected to continue with short-term trend moves up, it is anticipated for U.S. Dollars to get stronger.  Â

The current contest has already started on November 14, 2016 and will end on November 18, 2016. You can register for the next competition which will take place from November 21, 2016 to November 25, 2016. Note: Registration for the next competition finishes 1 hour before the contest starts.

Rise in U.S. Employment Growth Impact on Fed’s Next Rate Hike The employment rate in US has a significant increase that would finalize the decision for the December rate hike from Federal Reserve. Nonfarm payrolls also added 175,000 jobs in the month of October higher than the 156,000 jobs in September. It is predicted that the unemployment rate will decline by one-tenth of a percentage point to 4.9%. The Labor Department will release its employment report this Friday morning. Though the US central bank is expected to implement a rate hike this december, the results of the U.S. Presidential election will still have a weigh on the decision. On Wednesday, Fed announced that the interest rates will not be changed but there is higher probability for the next rate hike. Â

The current Money Fall contest has already started on November 7, 2016 and will end on November 11, 2016. You can register for the next competition which will take place from November 14, 2016 to November 18, 2016 Note: Registration for the next competition finishes 1 hour before the contest starts.

 Gold, CHF Surges, Stocks Drop Amid Heightened US Election Anxiety  The stock market plummeted to its lowest levels since July, while the CHF surged along with gold prices due to an increase in market anxiety with only a week left before the US presidential election commences. As Trump edged past Clinton in the presidential polls, the prices of equities experienced a selloff with regards to high-risk assets, while the Mexican Peso (MXN) caused massive losses among the major currencies, especially since this particular currency is now seen as a gauge for the market’s sentiment with regards to the results of the elections. Safe haven currencies such as the CHF and JPY surged after traders sought to avoid high-risk investments. Treasuries held fast to its gains, while gold prices increased and reached its highest levels in over a month.

 Inflation Rate is Expected to Soar in 2017  The inflation rate is said to increase up to 4% in the second half if 2017. It is even higher than the forecast last August but the Bank of England is expected to further increase the rates. Although, there are obstacles in the economy that limits the growth.  The Consumer Price Index grew by 1% in September even higher than 0.6% increase in August, This has been the highest rate for almost two years caused by the higher costs of clothing, oil and hotel and is expected to increase the consumer prices in the next months to come that would only be transient. The last CPI inflation was back in 2011 that increased up to 4%. In effect, households will undergo changes in their standard of living which is worsen by the fall of pound. Moreover, this would suppress the consumer purchasing power.

Demand for Manufactured Capital Goods Weakened  The manufactured capital goods from America fell by 1.2% in September despite three consecutive months of gains. The demand for computers and other electronic products slowed down which is expected to affect business spending in the last quarter of the year.  Demand for new heavy machineries has been reduced because of the predominance of used construction equipments while the demand for transportation equipments declined by 0.8% that impelled durable goods lower by 0.1%. On the other hand, orders for electrical equipments and machineries including appliances has risen last month. However, this may shift course to a better predicament since the dollar appreciated as well as the oil and gas drilling activity has improved in the past months. Â

China Reassures Investors to Impede a Six-year Low  Chinese Yuan is depreciating nearing a record low in six years. The government is finding ways to hinder the process and recover from this impending threat. However, the deputy Governor of People’s Bank of China (PBOC) said that there is no grounds for a relentless decline and they stopped it from happening.  China is giving off signs that the currency is being carefully monitored and investors should be careful in their trading positions against the currency. Despite this information, this would have much of an impact considering past connotations to the problem since the driving force is the appreciation of dollar.  The PBOC is saying if volatility arises, investors should not be agitated as they would definitely do something to stabilize the situation. China has already eased the local bonds and abandoned the necessity for inbound investment program quotas. Â

EU Exporters Could End Up Paying Higher Tariffs to EU Than Vice Versa  EU enterprise exporting goods would pay higher tariff to Uk compared to the other way around. Around £12.9 billion are to be paid by EU enterprises just on tariffs alone after UK leaving EU and should Britain come in terms with the World Trade Organization. In exchange, UK enterprise exporters has to pay around £5.2 billion for tariff in a year. This implies the significance for both parties to settle their post-Brexit trade deal. A study has been conducted showing 22 out of 27 EU members are found out to pay higher tariffs regarding exports to UK.  Additionally, the act of Belgium to not agree regarding the Comprehensive Economic and Trade Agreement (Ceta) between EU and Canada which has been an issue recently. Nevertheless, a representative of the campaign, Chris Grayling, said that this would not be a hindrance to settle an agreement with the British trade deal with EU. Â

 The current contest has already started on October 24, 2016 and will end on October 28, 2016.  You can register for the next competition which will take place from October 31, 2016 to November 4, 2016 (Terminal time)  Note: Registration for the next competition finishes 1 hour before the contest starts.

Weak Trades in China Slows Down Economic Growth  The exports and imports in China fell short of expectations as it dropped by 10% and 1.9% respectively in US dollars. This was triggered by a weak demand both domestically and internationally affected by the price hike in oil. Although in China’s perspective this became an advantage with higher returns. For analysts this is a sign for a slow growth in the economy but it is still inconclusive to say unless there is another substantial report that confirms slow development. Â

Volkswagen Plans to Reduce Workforce Yearly  Top management of Volkswagen may reduce around 2,500 jobs every year for the span of 10 years through early retirement. This is a step for the plan to cut expenses as a future strategy without dismissing thousands of workers abruptly.  On the other hand, they are in need of additional workforce for “software development and mobility services” to counteract the Diesel Emission scandal saying they cheated on their pollution emission tests in US. Â

The current Money Fall contest has already started on October 10, 2016 and will end on October 14, 2016. You can register for the next competition which will take place from October 17, 2016 to October 21, 2016 (Terminal time). . Note: Registration for the next competition finishes 1 hour before the contest starts.

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The current Money Fall contest has already started on October 3, 2016 and will end on October 7, 2016. You can register for the next competition which will take place from October 10, 2016 to October 14, 2016 (Terminal time). . Note: Registration for the next competition finishes 1 hour before the contest starts.