Month: May 2020

US Dollar May Rise as SGD Falls on US-China Woes

Chinese currency volatility is causing the US dollar to fall against other major currencies, and the US dollar may rise again in the wake of the ongoing USD-SGD (Singapore Dollar-SGD) crisis.

The markets fear that China's continued leverage has reached a point that it will lead to instability, including a serious shock to the financial system. Over two years of over-leveraged growth have brought about a fall in the exchange rate, and that decline may continue for several months.

On August 10, the USD/SGD plummeted to its lowest level since January 2020. With the USD/USD now well below the level at which it was valued during the Asian Crisis, the US dollar may rise again after the crisis subsides. Further weakening of the dollar is likely to cause further losses for the Asian currencies, including the Japanese Yen, Hong Kong Dollar, and South Korean Won. By September, the USD/SGD will have recovered somewhat from its recent lows.

US stock markets are expected to follow the trend and fall in response to the lower value of the US dollar. However, a more important reason for the decline in US stock prices is the uncertainty that the turmoil in the Chinese economy is creating in the US stock market.

Many investors are so concerned about the possible repercussions of the crisis in China that they are selling US assets. They are less concerned about what happens to US assets if China stays on the brink of default. This is why the fear of a recession in China has triggered large sell offs in US stock markets.

An economic downturn in China could prompt capital flight to lower the value of the US dollar, especially given the trade surplus with China and the strength of the US dollar. A worse outcome would see the US dollar fall significantly in relation to the greenback. An economic recession in China would see a dramatic increase in capital flight and forced capital outflows from Chinese institutions.

Capital flight from China is closely connected to the question of how the country plans to repay its debts. Capital flight from China is particularly worrying because the country's lenders are expected to respond very quickly in order to preserve their investments. The other major concern is that capital flight from China could potentially create a liquidity crunch that will cause further volatility in the financial markets.

China has been careful to avoid an external default, which is likely to lead to a rise in capital flight from China, but capital flight will be worse than normal. Many countries are facing capital flight as they look to raise additional funds to help them avoid default and maintain their current level of international reserves.

It is important to note that the fall in the value of the Chinese currency will only have limited impact on capital flight from China. The most obvious factor that will remain constant is that capital flight from China will still be funded by Chinese assets. Therefore, it appears that China's financial system remains resilient.

To the extent that capital flight is driven by the increase in the risk premium, however, this could be much more problematic for the Chinese banking system. Investors are increasingly inclined to accept the higher risk of owning a reserve currency. If the risk premium increases due to another financial crisis, it is likely that capital flight will increase significantly in the near future.

When capital flight is experienced by a large and diversified country such as China, it can lead to a serious financial crisis. In addition, China's capital flight may also be accompanied by a collapse in its currency.

Capital flight can also be considered a form of default, where a country is forced to withdraw reserves from the international banking system. By being forced to withdraw reserves, a country becomes dependent on the ability of other countries to maintain or increase their levels of capital, as it is unable to do so itself.

The potential for capital flight from China is likely to affect capital markets across the world. Capital flight may exacerbate currency movements and cause significant destabilization to the global financial system.

GBP/USD Under Pressure, EU-UK Trade Talks Need a Reboot

GBP/USD under pressure, EU-UK trade talks need a reboot - that is the headline you'll find on many currency exchange trading systems' graphs. This divergence in the behavior of the two major world currencies has been rising steadily and seems to be making traders "appear" to "see" it, which they are.

The European Union and the United Kingdom of Great Britain and Northern Ireland are headed for a "standstill" in their negotiations for the U.K. to leave the European Union. The net result will likely be a loss of trade opportunities for British businesses. It should be noted that even as the U.K. becomes more isolated in the world, the U.S. dollar is no longer weakening with respect to the euro.

A global financial climate that is full of uncertainties is not always a very good thing for investors. If the UK "goes", all the other members of the European Union might go, too. That means a strengthened U.S. dollar versus the euro - thus, more Americans buying more of the products and services imported from the U.K.

We're living in interesting times, indeed. The pound sterling is dipping against the dollar but hasn't totally collapsed yet. The only question mark for the market is how far the price of imports can be reduced when the U.K. will no longer be part of the single market, leaving it open to tariffs.

GBP/USD is now moving at a strong incline, following developments over the weekend. It is very likely that the current set of negotiations in Brussels between the EU and the U.K. will yield some kind of settlement agreement. In this article we will examine what it means and how investors should react to the latest development. However, we would note that it is not uncommon for the market to react very negatively to particular developments in the financial world, and indeed to this point this is just one of several very significant news stories.

There's no reason to be fearful of the outcome of the negotiations, of course. It should be noted that those who are urging the British to leave the EU would do well to read the tea leaves and watch the clouds. Again, the markets have not taken this latest development too well.

GBP/USD closed below the psychological level of 1.0894 and was now moving up for the first time in two days. All of the analysts who have recently issued technical analysis signal lines for this pair should be re-assessing their recommendations.

Traders in the European Union are feeling "under pressure" from the potential volatility created by the Brexit vote. The low-hanging fruit has already been picked by the Europeans and investors are understandably trying to take advantage of the situation to make more money.

That's one reason why the currency market has become so active recently. More currency pairs are showing signs of weakness, while a few have shown signs of strength. Here's a handy summary chart to summarize the dynamics:

In terms of the pound and the euro, the result of the British referendum vote is causing the two to move together in different directions. GBP/USD has already turned lower following news that the EU will impose tariffs on any UK exports that it considers to be subsidised.

GBP/USD is already moving up about half a cent after the European Commission announced that it will outline a plan for the U.K. to remain within the single market - without freedom of movement. The message to the pound is pretty clear: if you want to make some money, exit the EU.GBP/USD has been way too reactive recently to a complicated story like the currency negotiation in Brussels. If the market starts to calm down in the next couple of hours, it should be considered a buy or sell depending on how you like your risk profile.

British Pound (GBP) Latest: EUR/GBP Stable Despite German Court Ruling

The pound is likely to remain a benchmark in financial markets, despite the recent German court ruling, according to analysts. The high-profile case, involving a former high-ranking Bank of England official's allegation that Britain's monetary policy is to blame for the recent devaluation of the currency, continues to make headlines, even though it was decided against in February. Even so, the fall in the value of the pound was due in part to the British economy and the extent of its dependence on the banking sector.

Speaking at an event in London on Thursday, Martin Selmayr, the president of the European Central Bank (ECB), described the legal issue as a "distraction" for the wider issue of the role of banks in determining the value of the British pound. He said the German court decision "should have no impact on the credibility of our monetary policy" and expressed confidence that the ECB would eventually prevent the risk of a repeat of the last crisis. Mr Selmayr also suggested that the political debate over the future of the pound is likely to slow economic growth this year.

This in turn might mean that the rate of inflation will rise, especially as inflation expectations are being affected by this dispute. This may in turn affect the ability of the Bank of England to control inflation, despite the benefits of its quantitative easing programme. John Longworth, a currency strategist at J.P. Morgan in New York, says that although the current volatility will not affect the underlying fundamentals of the British economy, the debate over the future of the pound is likely to affect future conditions.

"It seems likely that it is the political sensitivity of the issue, which will act as a negative at the moment and help push down the rate of inflation, which we expect to occur this year," he said. "But from the current perspective, it looks to be possible that the political impasse will not remain a problem for quite some time. Once the political impasse has been resolved, I don't think that the underlying economic conditions will actually change as such." However, he says the Bank of England could decide to expand its stimulus programme later this year, if the political barriers are removed.

Sterling today, is trading at around $1.06, following Wednesday's weak open and stronger trades on Thursday. This suggests that the drop in value of the pound during the recent political crisis has already subsided.

Although there have been reports that the UK might leave the European Union and, consequently, the European Central Bank could print more money to prop up the euro, such a move would hardly have an impact on the competitiveness of the UK economy, according to David Blanchflower, the outgoing chief economist at the Bank of England. He says there is a "reasonable degree of justification" for the Bundesbank to put pressure on the Pound, which could still bring significant improvement to the country's trade position.

But with the crisis in the Eurozone and the uncertainties created by the continuing downturn in the global economy, it will take time to create a situation where all the economic circumstances are more conducive, according to Mr Blanchflower. In fact, as he put it, the current level of uncertainty in the UK will add to the level of uncertainty in the Eurozone. However, he adds that the political volatility is likely to strengthen the position of the British economy, but he also admits, "There is no guarantee that everything will go well".

Whether or not the UK leaves the EU remains unclear at this point, but, judging by the reactions of investors in the UK stock market, it is unlikely that this will happen any time soon. In this respect, it seems that the recent events in Germany have been largely ineffectual in weakening the UK economy. On the contrary, Mr Selmayr has gone further to declare that he believes that the current situation in Europe is good for the UK, as the recent European Council has been aimed at boosting confidence and solving a number of problems.

"The reason why this is good for the British economy is because that all the leaders are now talking about putting the Eurozone back together again, which will all contribute to better trade and growth," he said. While this may be the case, the recent scandals may also force the authorities to further tighten monetary policy, but Mr Selmayr says this could help reinvigorate the British exports.

ErisX Launches Physically-Settled Ethereum Futures Contracts

ErisX is developing software to deliver the functionality of Ethereum's ethereal computer. The software, which they call a 'smart contract,' will enable traders and developers to develop and launch an electronic exchange that will trade ether futures contracts.

Ether is the native currency of the ethereal computer. It has been said that ether's potential to create new economic value will cause it to surpass both the USD and the Euro as the world's "new money." Ether can also be traded as a derivative, such as stocks or bonds.

Ether is described as a virtual currency that represents one-eighth of the total value of a currency pair. In other words, ether (ETH) may be exchanged for another currency. As the ether dollar values fluctuate, it becomes more advantageous to sell ether for dollars.

Ether was created in 2020 as a virtual money backed by computer code. It can be used for transactions in peer-to-peer applications. There are millions of ether units being sold each day. It has skyrocketed in value and is even now more popular than gold.

Ether has a future as a currency. That future depends on its use as a medium of exchange. It can serve as a store of value, since its price fluctuates based on the demand and supply of others, as well as the economics of its development.

The ErisX Platform is creating software that allows users to program the way they want the ethereal computer to handle transactions. The platform will allow users to build custom decentralized applications that interact with the ethereal computer. Users can then exchange one type of contract for another using the platform.

Ether can be used as a store of value, since its price fluctuates based on the demand and supply of others, as well as the economics of its development. It can also be used to pay for transactions in peer-to-peer applications. It may be possible for it to surpass USD and the Euro as the world's "new money."

ErisX is building software to deliver the functionality of Ethereum's ethereal computer. The software, which they call a 'smart contract,' will enable traders and developers to develop and launch an electronic exchange that will trade ether futures contracts. Ether can be used as a medium of exchange.

More information on the site FIBO Group