Articles

Trade from an informed place. We cover news, political events and market analysis plus product updates.

Articles

Trade from an informed place. We cover news, political events and market analysis plus product updates.

NAFTA Update – Have US Negotiations Progressed?

It’s been one year since the trade renegotiations on the North American Free Trade Agreement (NAFTA) between Canada, the United States and Mexico began. Since then we have seen tough rhetoric on how the agreement should look like moving forward from each country, especially the United States. But are we finally getting closer to an agreement? Ab...

August 16, 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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China Taking Stock Of US Trade Deficit Figures

The US official trade deficit number with China is $375.2bn in 2017. But According to China Customs General Administration, this number should be $275.8bn. Notice there is a vast gap between the versions from two sides. So, which version is closer to the facts? Firstly, let’s start this debate by looking at the US perspective. Previously in the...

August 9, 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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Lacklustre Gold Weighing Heavy On Markets

Free-falling gold prices The latest weekly chart for gold does not look favourable for the precious metal. Below we can see that in twelve of the past sixteen weeks, gold prices have ended down and is one of the worst runs for the metal in decades. What is surprising is that the demand for gold continues to fall despite an increasingly volatile ...

August 7, 2018
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Are the bond markets overwhelming or intimidating?

By ​Deepta Bolaky The intermarket relationships between commodities, currency, equity and bond markets are key in understanding the way the markets interact and move. Some markets will move with each other while others will move against each other. There are different types of bonds but for the purpose of this article, we will use the U.S Treas...

August 7, 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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Bullish Technical Reversal Trend

By ​Deepta Bolaky “Buy the Dips” and “Sell the Rallies” are widely followed strategies by new or experienced traders.  Buy-the-dip strategy is becoming increasingly popular based on the theory of market fluctuations. It takes into consideration that the market will eventually rally up at pre-dip prices at some point. “Nowadays, trade...

July 31, 2018
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World’s Largest Stock Exchanges

Almost every country in the world has a stock exchange with some countries having multiple exchanges. There are over 60 major exchanges across the globe with the total market cap of over $85 trillion. But only 18 of those are in the so-called ''$1 trillion club''. The top 18 stock exchanges have a total value of $77 trillion which makes up around 9...

July 30, 2018
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Snapshot – NZDCAD, EURUSD, USOIL

NZDCAD - Daily To begin with, let’s take a look at the NZDCAD. Admittedly not the liveliest minor pair but in this instance, I think it is worth a mention. On the daily time frame, we can see the price is hovering around the critical support zone of 0.8850, an area that has been tested three times already this year but has failed to mount any ...

July 27, 2018
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Monitoring Volatility and Spotting Trading Opportunities

US Markets With relatively sound fundamentals driven by strong earnings growth so far in this earning season, US equity markets have continued their bullish trend. The S&P500 bounced back strong from its 100-day moving average in early July, and by going over the 2800 level, it seems to be on track to reach its all-time high of 2870,  possibly...

July 25, 2018
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