What Lies Ahead For Japan

In the midst of Wednesday afternoon's global bond sell-off, we saw government bond yields rise across the board and in one particular 10-year bond we saw a significant level approached and then surpassed. Japanese Government Bond – 10-year yield The Japanese government's 10-year bond yield rose to and then surpassed 0.145 percent, a significant...

October 5, 2018
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The Most Traded Currencies In The World

The Forex market is the largest in the world with around $5 trillion average daily trade volume. It dwarfs the daily trade volume of the New York (NYSE), Tokyo (TSE), and London Stock Exchange (LSE) which stands at around $22, $18 and $8 billion respectively. In this article, we will take a look at the top 5 most traded currencies in the world. ...

September 28, 2018
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Global Financial Markets: Dispersions and Catalysts

On GFC’s 10-year anniversary, one cannot help but wonder about the current dispersion in the financial markets. Developed Markets (DM) equities are now divided between US and non-US, with the US outperforming every other major market. S&P is hovering around its all-time highs whereas DM are still well below their 2018 highs. S&P 500 (Whi...

September 26, 2018
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Countries Using The US Dollar

The US Dollar is the most traded currency in the world and paired with all other major currencies. It acts as the intermediary in triangular currency transactions, held by almost every central bank around the world. Unofficially, US Dollar utilization occurs in over 30 countries worldwide and officially; it gets used as a legitimate currency in ...

September 19, 2018
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EURUSD, GBPUSD and AUDUSD Forecasts

All three pairs had a volatile year. Trade and geopolitical tensions have put significant bearish pressures on those pairs. EURUSD, GBPUSD and AUDUSD have seen new lows in 2018, and if the negative environment persists, we might see fresh lows. EURUSD Fundamental Analysis The EURUSD pair was able to find some support on Brexit news and some posi...

September 11, 2018
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Emerging Economies – Growth Potential

  GDP Dominance The United States dominates the world when it comes to having the largest economy by Gross Domestic Product (GDP), however, there are countries around the world which are showing major signs of economic growth and expected to overtake current world economic leaders, such as the United States and the United Kingdom. As mention...

September 5, 2018
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Jackson Hole Symposium: Why Is It Important?

All eyes will be on the Jackson Hole in Wyoming this week, where the annual Jackson Hole Economic Symposium will be held by the Federal Reserve Bank of Kansas City. This years symposium will take place from 23rd until the 25th of August and the topic for the upcoming event will be “Changing Market Structure and Implications for Monetary Policy”...

August 22, 2018
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August No Ordinary Month For GBPJPY

As Brexit concerns continue to weigh heavy on Pound Sterling crosses, there's not much to discuss from a technical perspective. Evidence of an overall bearishness sentiment dominates the charts with a few corrective moves thrown in for good measure. However, sifting through the layers of Sterling sameness, I uncovered something interesting relatin...

August 20, 2018
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Another Blow to the Emerging Markets

Emerging Markets (EMs) are being dragged down by the deepening crisis in Turkey. The collapse of the Turkish Lira has rattled the financial markets, ripped through the emerging FX markets and brought down the stocks markets at the start of the week. Fears have gripped the EMs over various issues at once. EMs have received not one but several pun...

August 15, 2018
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No Turkish Delight – Is A Currency Devaluation Of 40% Justified?

Most political scientists believe that all problems in the world are related to politics, and most economists believe that all problems are rooted in economics. However, what’s happening in Turkey now seems to be a combination of both as I'll explain. Firstly, investors have always regarded Turkey as one of the Emerging Markets with good economi...

August 14, 2018
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The New “Lows”

By ​Deepta Bolaky Trade and geopolitical risks were at the forefront of the meltdown that rattled the markets on Friday. Turkey’s currency crisis prompted a massive sell-off across the markets hitting the European banking sectors the hardest. Fears began to mount as investors freted its rippling effects on the global markets. The current risk...

August 13, 2018
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GBPAUD – Brexit ‘No Deal’ To Spark A 1000 Pip Move?

Since September last year, the British Pound has enjoyed a relatively easy time against the Australian Dollar, often described as a solid bull run. However, many fundamental drivers have turned sour for the Sterling crosses, and with GBPAUD in particular, we may be in for a significant price reversal. What's Driving the Pound Aussie Pairing? The...

August 13, 2018
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Venezuela – The New Zimbabwe?

Venezuela: A Latin American Crisis Venezuela’s economy has been in turmoil in recent times with its inflation skyrocketing and with no signs of slowing down, the situation may worsen. The political tensions have also been rising in one of the OPEC (Organization of the Petroleum Exporting Countries) member country whose economy has been slowly de...

August 8, 2018
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Emerging Markets and a Hawkish Fed

In 2018, we have seen a growing interest in the Emerging Markets (EM) as a lot of advisers or asset allocators have been upbeat about these markets. The emerging countries are improving on different factors such as stability of employment, growth in money or opportunity for innovation which make the overall outlook for EM promising. However, the...

August 8, 2018
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Snapshot – AUDNZD, EURUSD, USOIL

AUDNZD - Point & Figure Chart AUDNZD - As we approach the upcoming policy meetings this week, the expectations for both central banks (RBA and the RBNZ) is to keep their respective interest rates on hold. The only difference is that the New Zealand camp appears to be more dovish concerning fiscal policy going forward. We could also mention th...

August 6, 2018
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