Forexmart's Forex News

Discussion in 'Forex - Currencies Forums' started by Andrea ForexMart, Jan 18, 2018.

  1. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 6. Brent rose to $114 per barrel

    The price of oil is rising on Friday on continuing concerns that the market will face a shortage of supply.

    The current Brent quote is $112.57 (the daily maximum is at $114 per barrel). WTI oil is trading at $109.56 (the daily maximum is $110.84 per barrel). Analysts note that since the beginning of the week, oil quotes have increased by more than 5% and may end with a strong increase for the third week in a row.

    OPEC+ countries yesterday agreed to maintain the plan to increase the production quota in June by 432 thousand barrels per day. However, despite a systematic increase in quotas since August 2021, OPEC+ cannot reach the permitted production level. It is noted that by the end of March, producers lagged behind by 1.45 million b/s.

    Meanwhile, European states are preparing to restrict oil imports from Russia. Earlier this week, the European Commission proposed to impose an embargo on Russian oil supplies to EU countries as part of the upcoming sixth package of sanctions. An additional impact on the dynamics of oil prices is the concern about demand due to the outbreak of coronavirus in China, as well as about the increasingly narrowing supply.

    Moreover, the US has announced its intention to start buying oil on the market to replenish the strategic reserve (SPR). It is expected that the Ministry of Energy will begin accepting applications from sellers this fall, although real deliveries will begin later.

    May 5. Bank of England hikes interest rates to 13-year high

    The Bank of England has raised interest rates to the highest level since 2009 to counter inflation, which could exceed 10% this year.

    The regulator raised the rate from 0.75% to 1%. Some representatives of the central bank called for an even greater increase – up to 1.25%, in order to eliminate the risk of inflation entering the economy.

    Today's Bank of England move represents the fourth consecutive rate hike since December – and the fastest increase in borrowing costs in 25 years.

    The regulator also did not rule out further tightening of monetary policy in the coming months.

    In addition, the Bank of England said that it is also concerned about the impact of China's policy to block Covid-19, which threatens to hit supply chains again and increase inflationary pressures.
     
  2. Benigna Mazzi

    Benigna Mazzi Senior Investor

    Joined:
    Jul 2020
    Posts:
    485
    Likes Received:
    11
    Risk management is such an important calculation here! By lowering leverage amount, using micro lot size, trading with low spread pairs, traders can mitigate their trading risk level. Risk management policy is essential for Forex trading. Even though Forex trading risky, there are ways mentioned above by which a trader can lower his risk level.
     
  3. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 13. Oil market shows signs of recovery

    The price of oil continues to rise on Friday amid uncertainty about the imposition of a European embargo on oil supplies from Russia. Some EU countries believe that it is necessary to postpone the embargo on Russian imports if Hungary still does not support this ban.

    An additional influence on price dynamics is exerted by the situation in China, where the incidence of Covid-19 has declined.

    The current Brent oil quote is $108.87 per barrel. The daily high was marked at $109.72. The cost of North American WTI oil is located near $107.30 (the daily maximum is $108.12 per barrel).

    Investors also drew attention to the forecast of the International Energy Agency (IEA), according to which the decline in the supply of Russian oil on the world market in the second half of the year may reach 3 million barrels per day. In April, Russia had already reduced production by almost 1 million b/d, which led to a reduction in global supplies by 710 thousand b/d (to 98.1 million b/d).

    At the same time, pressure on the oil market is exerted by fears that a rapid tightening of monetary policy by world central banks will provoke an economic downturn and a subsequent decline in demand for energy resources.

    May 12. Bitcoin has broken through the level of $26 thousand

    The bitcoin exchange rate continues its decline, which began yesterday. The current quote of the most popular cryptocurrency is $27.775.40, the daily minimum was marked at $25.845. The market capitalization of the asset decreased to $515 billion with daily trading volumes of $ 71 billion.

    The crypto market began to decline after the publication of inflation data in the United States. According to the US Bureau of Labor Statistics, consumer prices rose by 8.3% in April. This indicator turned out to be 0.2% higher than forecasts (8.1%) and approached the highs for 40 years.

    Such statistics somewhat scared investors who hurried to get rid of high-risk assets, including cryptocurrencies. According to experts, both stocks and crypto assets fell in price, which caused panic in the market.

    It is worth noting that bitcoin has already fallen below the level of $29 thousand twice in a week. Experts call the $30 thousand level a landmark reference point for bitcoin – until recently, the cryptocurrency rose above $40 thousand, but quickly returned back.

    Another event that had an impact on the cryptocurrency market was the news about the Terra project. Unexpectedly, the popular TerraUS stablecoin rapidly collapsed, its exchange price was much less than the declared $ 1. At the same time, it is known that the stablecoin was provided by other digital assets, including bitcoin.

    In addition to bitcoin, other cryptocurrencies have also fallen in price. The Ethereum exchange rate today is located at $1909.35 (the daily minimum is $1720.58). The cost of Binance Coin has lost 26%, XRP and Solana have become cheaper by 28% and 35%, respectively. The overall valuation of the cryptocurrency market decreased by 18.5% to $1.2 trillion.
     
  4. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 16. Gold fell below $1,800 for the first time since the beginning of February

    Today, the price of gold fell below the psychological level of $1,800 for the first time since the beginning of February. The daily low was fixed at $1,785.40 per troy ounce. The current quote for the precious metal is $1,815.87.

    Analysts note that at the end of the past week, the price of gold fell by 3.9%, a record pace since June 2021.

    Experts say that the main reason for the decline in quotes is the strong dollar and the growing yield of bonds, because against this background, gold, which does not bring interest income, loses its attractiveness in the eyes of investors.

    The ICE currency index, which shows the dynamics of the dollar against six major world currencies, is down about 0.15% on Monday after rising to a 20-year high last Friday.

    July futures for silver, meanwhile, are growing in price – up to $ 21.465 per ounce. Moreover, last week silver finished falling by 6.2%, the maximum since the end of January.
     
  5. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 17. Unemployment in Britain in the first quarter fell to the lowest since 1974

    According to statistics from the National Statistical Office (ONS) of Great Britain, unemployment, calculated according to the methodology of the International Labor Organization (ILO), in January-March 2022 fell to 3.7%, which was the lowest since December 1974.

    In the period from December 2021 to February 2022, unemployment was 3.8%. Economists expected the indicator to remain unchanged.

    ONS data indicate that the employment rate in the country continued to grow in April. The number of jobs increased by 121 thousand last month and reached 29.5 million, and the number of open vacancies reached a record 1.295 million.

    Analysts of the department note that for the first time since the calculations, the number of unemployed turned out to be less than the number of vacancies.

    The average salary of Britons in the first quarter of 2022 increased by 4.2% in annual terms. At the same time, adjusted for inflation, salaries decreased by 1.2%.
     
  6. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 18. Johnson Matthey: palladium market may face a deficit in 2022

    According to the review of the world's largest producer of materials for autocatalysts, the British company Johnson Matthey, the palladium market in 2022 may become scarce against the backdrop of a decrease in the output of the metal in South Africa and the risk of disruption in supplies from Russia.

    The palladium market was already in deficit in 2020 (about 650 koz), but in 2021 the situation has become relatively balanced.

    Johnson Matthey fears that in the current environment, Norilsk Nickel, the world's largest palladium producer, may not be able to supply all of its products to the market. Due to the uncertainty in this matter, it is very difficult to calculate the total supply in the palladium market.

    Another major supplier, South Africa, will cut shipments by more than 6% in 2022 compared to 2021, amid depletion of work-in-progress inventories and planned maintenance of processing facilities.

    Moreover, the situation in Ukraine created significant supply risks due to Russia's status as the world's largest supplier of palladium and a major producer of platinum and rhodium. At the moment, Russia provided about 28% of the total supply of primary and secondary palladium.

    Experts believe that net demand for palladium will grow by 3% in 2022 to 6.9 million ounces. Demand growth will be constrained by weak car production and cost-cutting programs on the part of metal consumers.
     
  7. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 19. Tether lost $7 billion: is it the collapse of stablecoins?

    According to CoinGecko, Tether's turnaround offer has dropped from about $83 billion a week ago to less than $76 billion dollars on Tuesday. Investors withdrew more than $7 billion from this stablecoin after it briefly lost its dollar peg.

    As you know, Tether is tied to the dollar – it should always cost $1. But last Thursday, its price dropped to 95 cents amid panic over the collapse of a competing token called Terra USD.

    Most stablecoins are backed by fiat reserves, which means that they have enough collateral in case users decide to withdraw their funds from them. However, the new generation of «algorithmic» stablecoins (such as Terra USD or UST) have a dollar peg based on a mathematical code.

    The loss of the dollar peg drew attention to the problem of reserves behind Tether. When the reserves data were last released, cash accounted for $4.2 billion. Another $34.5 billion consisted of unidentified Treasury bills with a maturity of less than 2 months, and $24.2 billion of assets accounted for commercial securities.

    Experts note that the destabilization of tokens has worried regulators in the United States and Europe. Last week, US Treasury Secretary Janet Yellen warned of risks to financial stability if stablecoins continue to grow unchecked. At the same time, she urged lawmakers to adopt laws regulating this sector by the end of 2022.

    France is also concerned about the situation in the cryptocurrency market, calling it a «wake-up call» for global regulators. According to the governor of the Bank of France, Francois Villeroy de Gallo, cryptocurrencies can destroy the financial system, especially stablecoins, if they are not regulated. As a result, the European Union plans to subject stablecoins to strict regulatory oversight through new rules known as Crypto Asset Market Regulation or MiCA.
     
  8. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 23. Experts believe that the EU will not be able to replace Russian oil

    The topic of the embargo on Russian oil is one of the main topics for discussion on the international market. At the same time, a number of analysts believe that the European Union will not be able to find a replacement for Russian hydrocarbons in the medium term in the event of a ban on oil supplies.

    Vagit Alekperov, ex-head of the Russian oil and gas company Lukoil, said that in the event of an embargo, Russia will be forced to reduce oil production and freeze wells, as it was at the beginning of the coronavirus pandemic in 2020. Therefore, a ban on oil from the Russian Federation would be a shock to everyone and the most negative scenario for all parties.

    Moreover, it will take years to build a new infrastructure to redirect Russian oil entering the European market today.

    Earlier, the European Commissioner for Economics Paolo Gentiloni said that the EU member states currently cannot agree on an embargo on the import of Russian oil – Hungary takes a firm position «against». The country insists on extending the transition period and/or withdrawing the country from restrictions. In addition to Hungary, other countries, including Bulgaria, do not agree with the embargo.

    It is worth noting that the introduction of an oil embargo against Russia in the EU has been actively discussed since the beginning of May, but so far the dialogue on this issue has not led to a consensus. In addition, it became known that the embargo on oil from the Russian Federation is not spelled out in the basic scenario of the European Commission's spring economic forecast for 2022-2023.

    May 20. Cisco shares collapsed 14% amid China lockdown

    Shares of network equipment maker Cisco fell sharply on Thursday after the release of a forecast for sales in the current quarter. According to the forecast, the indicator fell significantly due to the damage caused to the supply chain by quarantine restrictions in China.

    In particular, the company expects a decrease in sales in the fourth quarter of this fiscal year by 1-5% compared to the same period last year. Analysts, on the other hand, had expected growth of 5.9% to $13.9 billion.

    As a result, Cisco shares fell 14% to $41.36 (the lowest price since November 2020), and 24 million shares traded on the exchange exceeded the average daily sales volume of 22 million shares during the first hour of trading.

    The company said there was solid demand in the third quarter, but sales were hurt by coronavirus restrictions in China, which cut the company's revenue by $300 million, and a Russian special operation in Ukraine, which reduced sales by another $200 million. It’s expected that the quarantine in Shanghai will be lifted on June 1.

    Cisco's Q3 adjusted earnings were 87 cents per share on $12.8 billion in revenue. Analysts had expected 86 cents per share on $13.3 billion in revenue.
     
  9. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 26. Brent rises after the release of US data on stocks

    On Thursday, the oil market is showing a rise after the release of data from the US Department of Energy on crude oil reserves in the country, which showed a decrease in oil and gasoline reserves before the start of the automotive season.

    The current Brent quote is $111.60 (the daily maximum is at $111.86 per barrel). WTI oil is trading at $111.11 per barrel.

    According to the report of the Ministry of Energy, commercial oil reserves in the United States for the week ended May 20 decreased by 1.02 million barrels to 419.8 million barrels. Experts on average expected a decrease in reserves by 2.13 million barrels. Stocks at the terminal in Cushing decreased by 1.1 million barrels. Oil production remained at 11.9 million barrels.

    Gasoline stocks decreased by 482 thousand barrels, distillates – increased by 1.66 million barrels. Analysts expected a reduction in gasoline stocks by 2.13 million barrels and an increase in distillate stocks by 1 million barrels.

    Earlier this week, it was also reported that the administration of US President Joe Biden is considering restricting the export of petroleum products from the country to curb the rise in gasoline and diesel fuel prices.

    May 25. Russia and Iran switch to settlements in national currencies

    Russia and Iran held a meeting during which the countries agreed to switch to settlements in national currencies and discussed the possibilities of Shetab and Mir payment cards.

    The negotiators note that the relevance of the topic of financial and banking relations between countries, as well as the creation of conditions for mutual settlements and payments between legal entities and organizations is a huge step forward.

    In addition, the countries discussed swap supplies of oil and gas, as well as increased investments for the implementation of joint oil and gas projects in the republic. According to Russian Deputy Prime Minister Alexander Novak, cooperation between Russia and Iran in the current conditions is becoming one of the most key, including for the transit of goods from the Persian Gulf.

    The parties also agreed to accelerate the preparation of an agreement on a free trade zone. Currently, Russia has a free trade agreement with the CIS countries – it was signed on October 18, 2011.
     
  10. KostiaForexMart

    KostiaForexMart Senior Investor

    Joined:
    Mar 2019
    Posts:
    1,084
    Likes Received:
    2
    May 27. Gold shows a downtrend

    Gold quotes settled at $1,855 per troy ounce, which is 11% lower than the maximum value reached on March 8, 2022 ($2,078 per ounce).

    Since the beginning of May, prices have fluctuated in the range of $1800 – $1870. Analysts note that this trend is the result of a temporary decrease in the degree of geopolitical tension in the world.

    Economists predict that gold prices will average $1880 per ounce this year. At the same time, the main factor influencing the dynamics of precious metal prices will be the tightening of the monetary policy of the US Federal Reserve. And a further increase in the federal funds rate of the US Federal Reserve will help maintain the downward trend in gold quotes.

    However, analysts do not rule out a trend reversal. This may happen in the event of a more serious deterioration in geopolitics than the market currently predicts.

    It is worth noting that gold often acts as an important protective tool for developed countries. As a rule, wealthy EU citizens try to hedge the risks of financial market volatility and sharply increased inflation through investments in gold ETFs or bullion. Current interest rates are not very attractive and do not give Europeans the opportunity to protect their savings. Moreover, the EU countries are in close proximity to the military events in Ukraine, which also strengthens their motivation to invest in protective assets.

    At the same time, the demand for gold in China has decreased. Severe coronavirus restrictions negatively affect the physical ability of the population to purchase precious metals.

    Summing up the above, it can be assumed that attempts to stabilize the world economy, tightening the DCP and reducing the influence of the geopolitical factor will lead to a gradual decline in gold prices. However, it is worth remembering that a sufficiently high level of uncertainty in the short-term prospects will currently keep prices from falling sharply.
     

Share This Page