Economic and company news by ForexMart

November 24, 2016

U.S Dollar Gained Much Power Even Before Trump’s Victory

The greens continuously rise after Donald Trump won the American presidential election. However, these upsurge angst companies that imports their products to other countries which caused few investors to place the full responsibility to Trump for they earning less than their average gains because the dollar is too strong.

Moreover, these complaints were on the deck before the new U.S President-elect take his position. The squawks from companies point out that the cause of low earnings is due to the issues regarding the stronger dollar. Some of the large companies that the currency brought headwinds into their firms include Apple, Alexion Pharmaceuticals, Kraft Heinz, Procter & Gamble and Whirlpool.

According to the research made by the Pavilion Global Markets that current stance of the dollar is the top reason why companies earned worse than their expectations, followed by issues concerning Brexit, election, the Fed, and wages.

Nevertheless, Jim Paulsen from Wells Capital Management said in an interview that he predicts that the greenbacks will experience a decline for 2017 because of the increasing inflationary expectations.

November 24, 2016
Sluggish Trades Affect Germany’s Economic Growth
The economic growth of Germany slowed down by 0.2 percent in the third quarter even though both the government and consumer spending has significantly increased. Mainly due to the feeble foreign trading that brought an impact to Europe’s largest economy.
The Government spending rose by 1.0% while the Household spending climbed by 0.4%, both adding 0.2% to GDP economic growth. However, the net foreign trade deducted 0.3 percentage point from GDP growth since exports fell by 0.4% while imports ascended by 0.2%. This implies that the companies are withholding investments in the brink of low monetary policies of the European Central Bank.

November 25, 2016

Sluggish Economic Growth Supported by Economic Data



Japan undergoes slow growth reflected on the several economic indicators. Statistics from last year until early this year showed they have recovered but it is still not sufficient.
The industrial output slowed by 0.1 percent in October because of less foreign and local demand that affects production. The retail sales and household spending were also expected to slow down for 8 consecutive months after it declined by 1.2 percent and 0.6 percent respectively. The private consumption and unemployed also slowed down and moves at a steady rate.


There has been a positive results in the third quarter this year but a sustainable economic recovery is still questionable.

November 25, 2016
Pound to Take A Break as Investors Sees a Longer Effect of Brexit

After the EU exit on June 23, the sterling had a 16 percent dip which is feasible for a huge adjustment on its economic status. Two of the most renowned Scotland-based investment company have conveyed their advice for the pound to give the pound a rest.
The Kames Capital and Standard Life Investments inferred that the aftereffect of the referendum would last a decade.
According to Andrew Milligan from the Standard Life company, the market valuates in advanced as they expected that the British economy would endure enormous changes. While Stephen Jones of Kames described the pound as the “whipping boy” of the forex market because this is the consequence from the unpleasant Brexit event.
At present, the financial situation of U.K had a worse progression which caused the pound to remain as one of the poorest performing currency among Majors, in general, followed by the Mexican peso.

November 25, 2016
Japanese CPI Data Records Longest Losing Streak since 2011, Drops for Eight Consecutive Months

The consumer prices data for Japan has again dropped for its eighth straight month, recording its longest losing streak since 2009-2011. This losing streak in the nation’s consumer data shows just how far Japan is from reaching its inflation target of 2%. The Bank of Japan’s primary inflation measurement, which is consumer prices minus fresh food, decreased by 0.4% last October as compared to its data from the same period last year. Consumer prices minus food and energy increased marginally and had a reading of 0.2% and was previously forecasted to come in at 0.1%. Consumer prices in general increased slightly by 0.1% with a surge in prices for fresh food making up for the drop in energy costs.

November 28, 2016
Service Sector Affected by Low Optimism in the Economy
Low consumer spending and rise in wages affected the Service sector of U.K. for this month of November. This would bring negativity this Christmas season since pound has also depreciated. Companies rendering professional services are expected to decline in sales while it is the opposite for consumer services which is predicted to rise in sales in the next three months.


Even though, the consumer confidence has weakened, the employment growth remained steadfast. Consumer companies may allocate funds to training which will increase spending but cut down expenses on location, vehicles and machineries.

November 28, 2016
Base Metals Continued to Surge Due to Increase in Infrastructure Spending
Metals had a persistent improvement amid on the supposition on Trump’s infrastructure expenditure and weakness in the overall inventories. Copper was able to arrive on its one-week high after the extensive downfall of the base metals. In trading copper within Asia has reached $269.90. However, investors speculate that Trump’s fiscal investment is almost $1trn which is expected to be the driving force for growth but will lessen the supplies considering the fact that China’s yuan hedging. In light of this, the bullish impetus gives rise for the demand of the trend-following fund as it was able to surge the buying pressure. Furthermore, the industrial metals sustained an upward lift amid the strengthening of the U.S dollar compared to other currencies.
Despite China’s procurement of copper as a hedge to overcome yuan devaluation, the data issued specified a positive growth in supply. There is also an expected rally in prices of other base metals in order to raise an opportunity to replenish short trading commodities.

November 28, 2016
Gold Recovers from Nine-Month Slump as USD Drops
Gold stocks were able to recover from its recent nine-month slump as the USD’s strength which sent gold prices down and pushed silver into a bearish market finally fizzled out. As gold finally clocked in its first increases in four days, its weekly loss was cut back by up to 2%, while prices have all but decreased following the release of highly positive economic data and expected increase in national spending after Trump’s recent win increased market expectations of added interest rates. As a result, a lot of investors are now selling off gold-backed investments, the fastest selloff seen in three years.

ForexMart Launches Web Terminal for Traders
We have launched a trading web terminal which will be available to all ForexMart clients.
This is an online-based trading platform which will enable clients and partners to keep track and supervise their trades at any given period of time without the necessity of downloading the MT4 trading software from the site. The web terminal also has a user-friendly interface which can be customized by partners and clients in accordance to their preferences.
The launching of this web terminal is part of our continuous efforts to further improve our services and to consistently provide a better trading experience for both our clients and partners, as well as to create more opportunities for traders.
The web terminal can be used for both old and new ForexMart trading accounts. For further information or any inquiries regarding this new feature from ForexMart, you can visit <here> or you can contact our customer service at support@forexmart.com

December 5, 2016

Euro Drops, Bonds Surge as Italy Says No to Constitutional Reforms

The EUR plummeted along with Asian stocks while bond prices surged after the Italian government voted “No” on the referendum for constitutional reforms, which sparked concerns that this recent development in the country will induce instability in the Italian economy and boost nationalist organizations. The euro hit its lowest point in almost two years after Italian PM Renzi announced his resignation. UK-based stocks and Asian shares index futures also dropped, while government debt recoiled in Treasuries during Friday’s session.

December 7, 2016
GBP Hits Highest Level in Two Months as Market Hopes UK Government Loses Brexit Case
The sterling pound hit a two-month high after the UK Supreme Court recently concluded its second day of arguments with regards to discussing the right to commence the Brexit referendum, or the UK’s imminent separation from the EU. The GBP recorded its sixth day of increase against the USD, its second consecutive monthly gain since November. The UK government has already lost a Supreme Court case, which was about whether the Parliament should be first given the right to do a vote before the actual implementation of Theresa May’s Brexit strategies.

RBA interest rate decision remained at 1.5%
The central bank of Australia or also known as RBA has announced their final decision during the board meeting held every month. The Reserve Bank of Australia made a resolution to keep their rates unchanged with a record low reaching 1.50 percent.
According to a site whose purpose is to compare mortgage rates, finder.com.au have made a survey among 75 experts in the industry and most them expected that rates will still be consistent. Furthermore, they support the RBA’s decision as there is no reason to demand the bank to employ such changes. Many professionals from the industry anticipate that the next move of the Australian financial system will be on the upcoming February 2017.

Australia's Economy Weakened by 0.5% in Third Quarter 2016
The Australia’s economy declined more than the anticipated 0.5% in the month of September which is set to be the first recorded three months of low growth in the span of five years. The annual economic growth rate also declined from 3.3% to 1.8%


Global growth is also stagnant for this year and the labor market also weaker compared in 2015. An economist has stated that the economic growth was also dampen by the election campaign in the months of June and July that pulled the numbers to record highs brought by economic and political uncertainty. This has influenced the consumer and business activities although it has been forecasted that the the economy will regain in the last month of the year.

ForexMart at ShowFx World in Kiev
This coming December 17-18, 2016, ForexMart will be joining other exhibitors in the upcoming ShowFx World Exhibition to be held at the Hyatt Regency in Kiev, Ukraine. This particular event is dedicated to bridging the gaps between traders and brokers and will feature major brokerage firms and other prominent figures in the financial industry.
The ShowFx World Expo will give attendees the chance to attend various workshops and seminars spearheaded by some of the world’s top experts in the trading industry, learn the most effective personal finance managing tips from leading financial gurus, and win prizes from raffle draws and get giveaways from the organizers and participating firms.
Attendees to the said conference can also get the chance to get advice from participating brokers and learn more about the participants by getting introduced to their products and services, as well as their respective achievements. Admission to the ShowFx World Exhibition Kiev is absolutely for free.

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Japan’s Economic Growth Rate is Weaker for the Third-quarter

The Japanese economy presented a lower-than-expected data during the third quarter of this year. According to the country’s Cabinet Office, Japan obtained 1.3% growth for the past three months until September versus to the results of the previous year. However, the initial estimate is 2.2% which is comparably weaker to the final result. Included in the recently presented data is the investments from various companies which is also lower than the earlier evaluation. The CapEx dropped by 0.4% as of this quarter due to the lesser investments from the steel and real estate industries. Furthermore, another data have revealed that the services sector is developing along with the increase in consumer spending.

December 12, 2016
EU Stocks Surge, Extend its Longest Rallying Streak in Two Years
European stocks extended its longest rallying streak during Friday’s trading session, with EU stocks hitting its highest rallies in over two years following highly supportive projected policy plans from the European Central Bank. The Euro Stoxx 50 Index closed down the previous session within 0.7% of an impending bullish market, while the Stoxx Europe 600 Index increased by 1%. The Italian FTSE MIB Index meanwhile dropped by 0.7% after posting its highest three-day increase in six months.

December 12, 2016
Demonetisation of 100-Bolivar Notes
The Republic of Venezuela made its announcement regarding the official replacement of the country’s banknotes, it will be fill in with coins within 3 days. The government decided to remove the 100-bolivar notes in order to minimize the smuggling of various items including foods. According to Nicolas Maduro, Venezuelan President, the syndicates run their operations within the border of the country cannot execute the repatriation of the notes. The most recent amount of the former “highest denomination” bill - 100 bolivar note is 2 US cents (£0.015). Moreover, the so-called “terrestrial paradise” are now dealing with a severe crisis both in political and economic sector since the region are included in the list of the world’s highest rates of inflation.

Cut in Oil Production Lead to Oil Price Hike
Oil prices surged to new highs since 2015 after OPEC and other oil producers come up with an agreement to lessen output production to counterbalance the oversupply in the economy.


The agreement entails 1.0 million barrels per day reduction, lesser to the planned cut of 1.6 million barrels per day with the accrued 1.76 million barrels per day(bpd) from 24 countries. The former 52.6 million bpd equivalent to 54 percent of global oil supply. If the planned cut was followed, there will be higher risks involved.


OPEC aims to cut output by 1.2 million bpd on January 1st from the top exporter Saudi Arabia with a bid of 486,000 bpd to stop overproduction.

December 13, 2016

Oil Prices Surge to Highest Levels in Almost Two Years Following Production Cuts Pledges from Non-OPEC Countries

Crude oil prices rose to its highest levels in over 17 months following Saudi Arabia’s pledge to cut back on its oil production more than the previous agreement, as well as a pledge from non-OPEC countries to implement production cuts next year. Saudi Arabia’s Energy Minister has already stated that the country will be cutting back well below the predetermined target, and non-OPEC nations followed suit, with the said countries agreeing on cutting back by up to 558,000 bpd next year. This particular agreement is the first of its kind between OPEC members and non-OPEC members during a 15-year period.

December 14, 2016
USD Stabilizes as Fed’s Two-Day Meeting Commences
The USD had a somewhat muted trading session since traders are now closely monitoring Federal Reserve as the FOMC’s two-day meeting has already begun. The market is currently expecting the USD to have a somewhat inactive reaction to the Fed’s speculated 25-point interest rate hike, but could exhibited an increased volatility with regards to its price once Fed Chair Janet Yellen speaks on the press conference following the FOMC meeting. The market liquidity expected for this month has already been augmented by the results of the Fed meeting, especially since traders are now more concerned with the central bank’s future plans than with the Fed rate hike this month.

December 15, 2016
USD Surges to Highest Levels in Two Weeks as Federal Reserve Hikes Interest Rates
The USD surged to its highest levels in almost two weeks after the FOMC finally decided to increase its interest rates, with the funds target rate increasing by up to 25 bps. The central bank also opened its doors for a possibility of a total of three interest rate hikes this coming 2017, and while this is currently seen as a hawkish move on the part of the central bank, foreign exchange transactions exhibited less activity than what was initially expected during the trading hours following the said decision by the Federal Open Market Committee or the FOMC.

December 20, 2016

Italian Government Solicits €20bn to Support Their Struggling Banks
The Italian government waiting for parliamentary approval to borrow as much as 20 billion Euro equivalent to 17 billion pound to backed up weak banking sector especially Monte dei Paschi. This puts pressure to the newly elected Italian Prime Minister Paolo Gentiloni afraid to suffer losses regards to bailout rules of European Union.
He indicated that this serves as a preventive measure to protect savings. Also, Pier Carlo Padoan the Italian economy minister said that this would be used to induce liquidity in the banking industry to support troubled banks. They are looking for ways to pay losses incurred by retail investors.

December 20, 2016
Oil Ends Up Near $52 BPD as Investors Monitor Return of Libyan Crude
Oil prices ended up at nearly $52 barrels per day after investors shifted their focus to the possibility of Libyan crude oil supply returning as well as output cut returns in January following the recent agreement between OPEC and non-OPEC oil producers to cut back on oil production. The market is now expecting major cutbacks from major oil suppliers starting next year, with Saudi Arabia said to be planning to cutback smaller crude oil volumes being sold to Asia as compared to other regions.

December 20, 2016
German Business Climate Hit A Higher Level in December
The highly-regarded business climate index of the Germany published its data which showed an upbeat for the month of December, considering the economic indicator to attain its highest rate since February 2014. According to the quantification of Munich Institute for Economic Research (Ifo), the index amp up to 110.4 points last month and earned 111 points for December by which presented a better-than-expected result of the market and economists, the anticipated outcome is only 110.7 points.
The Business Expectations Index is designed to gauge various sentiments regarding the probable profits from businesses for the following six months have increased up to 105.6 for the last month of this year and exceeded the 105.5 expectations.
Clemens Fuest, President of the Ifo, said that the economic status of Germany had established a more stabilize position until the last month of 2016. The 48-year-old economist also mentioned that there is an increase in the indices of wholesale and industrial sales. In addition to it, various companies under the manufacturing sector also plan to expand its production for the following months.