Economic and company news by ForexMart

February 16, 2017

BoE Proposed Revisions for Interbank Lending Benchmark Rate

The Bank of England re-evaluated its proposal to revise the lending rate benchmark for interbank exchange to prevent manipulation of reference point for financial contracts. Also, they intend to put on hold the changes between March and April next year, instead for this year.

In particular, they will change the procedure and apply the “trimmed mean” approach for calculating the Sterling Overnight Index Average (SONIA) which is used alternatively for some contracts with the global London Interbank Offered Rate (LIBOR). An estimated total of $450 trillion contracts were affected by the market scandal which BoE takes responsibility.

February 16, 2017

Kazakhstan Mulls Over $6.5 bln to Support Banks

Kazakhstan intends to provide 2.1 trillion-tenge ($6.5 billion) worth of government budget in strengthening the bank's condition covering the expenditures for the budget deficit and concerns about oil wealth fund. The Minister of Finance Bakhyt Sultanov presented this proposal to the Cabinet last Monday. Based on the report from Bloomberg, Timur Suleimenov the National Economy Minister mentioned that the administration intends to execute a major transfer for the national oil fund amounting to 1.5 trillion tenge ($4.6 billion) with a similar allocation to the deficit.

The biggest landlocked state considers backing the Kazkommertsbank which is the country’s largest asset lender. The private bank struggled due to severe debts upon the duplicated defaults within the BTA Bank in 2014. The same year when the crude prices stalled and further weighed to tenge, weakening the Kazakh economy. The central bank has amplified emergency loans approximately by 400 billion tenge last February 9 and half of the said amount were pinned to Kazkommertsbank.

February 16, 2017

USD Rallies after Hawkish Statements from Fed

The US dollar was able to reverse its losses and reach its highest value for this month as Fed Chair Janet Yellen’s comments came out to be very hawkish. The Fed chair stated yesterday that the timing is right for the central bank to implement another rate hike in the coming months, and that it would be impractical to hold off this particular event any longer. This increased the probability of a rate hike this March, and lent support for the USD’s value which has been gaining momentum during the past week.

February 20, 2017

Thai Economy Records Slowest Annual Growth as Consumption Wanes

Thailand’s economy recorded its slowest growth rate in over a year during the previous quarter as the country’s private consumption waned. Thailand’s GDP data showed an expansion by 3% during the past quarter, its slowest annual recorded move. Thailand’s economy surged by 3.2% in 2016 as compared to 2.5% two years ago. This slow GDP growth was mainly attributed to the death of the Thai king followed by a major crackdown on illegitimate Chinese tourists, which also caused the country’s private consumption to drop. However, the Thai baht was among the best-performing currencies in Asia after it grew by over 2% against the USD.

February 20, 2017

Greece Fears Economic Collapse amid Debt Crisis

Greek people have withdrawn money from their accounts which exceeds to £2billion as they fear the news regarding economic crash which will took place within 45 days. The Hellenic republic was alarmed about the possible scarcity of money in a period of five months because the country is affronted with repayments with an estimate of more than £5.1bn (€6bn), thus the country is unable to pay the total amount without any aid or restructuring.

Greece citizens were forbidden to take more than £1,540 (€1,800) every month from their accounts, however, the currency had continuously deplete at a very fast rate. There are speculations that the Government will fail to pay for the next settlement due in July.

Individuals which involves tourists were strained to wait in line in order to obtain cash from their respective banking machines.

February 20, 2017

Investors Attracted to Stable Returns of Emerging Markets

Emergings markets are attracting more investors to invest in infrastructures hoping for higher returns compelled by the rise in priced within the developed markets. This was based in the recent annual survey, around 41 percent of investors seek their interest in Asia-pacific, significantly higher than the 28 percent result last year. On the other hand, the demand for the Central and Eastern Europe climbed to 30 percent and 27 percent for Latin America from the previous 22 percent and 11 percent respectively.

Investments in toll roads, airports, and ports have gained interests from investors for steady returns and much more predictable cash flows with would be ideal for long-term liabilities. The demand for these assets is too high affecting the bidding. However, despite the low competition found in emerging markets, the currency risks had pushed the investors for investors to withdraw.

February 21, 2017


Brazil Eased Inflation Rate Less than 5 percent in February


Brazil lowered its inflation rate less than 5 percent halfway February for the first time since 2012. This was done to recuperate the economy after its two-year-long recession. The inflation target of Central bank comes in at 4.5 percent and they are open for further price easing. This would also be a big help for President Michel Temer who is seeking support in Congress.


On one side, the consumer prices slowed down quicker than expected which could force the authorities to ease their target for 2019. The reports will be publicized on Wednesday morning (1200 GMT) and at the same time, the central bank is anticipated to curtail its rates by 75 basis points from a two-year low of 12.25 percent.

February 21, 2017

U.S Gasoline Supply Piled Up

Crude oil prices stayed in the holding pattern as it awaits for a much clearer data regarding the possible consequences. OPEC have largely complied to support and keep prices away from debts while the increasing oil manufacturing in the United States serves as a counterbalance. Another problem had risen as the gasoline inventories unexpectedly rack up towards a surprising level.

According to EIA, the US crude production recorded 259 million barrels, reaching its highest level upon tracking back its data in 1990, making the worst gasoline glut after 27 years. The glut is caused by high volume of production by which the manufacturing in U.S. continuously expands towards a range of 9 to 10 mb/d.

The rising stocks for oil emerged due to the possible offline maintenance by the refiners, however, it is much more expected that the stockpile would decline. While the current case is that the inventories for refined products and crude both climb higher, therefore, the market has something to worry about. Moreover, the increase helped sustain the rising demand for oil.

February 21, 2017
UK Policymakers Clamor for more Transparency in Offshore Territories
Policymakers in the UK are pressuring UK PM Theresa May to increase transparency with regards to the business guidelines for offshore territories, including the British Virgin Islands. A total of 80 Parliament members are clamoring for amendments to the Criminal Finances Bill which is slated to be returned to the House of Commons next week. According to these Parliament members, the lack of transparency with regards to the business dealings within offshore territories such as Cayman Islands and Bermuda might be used by criminals as an advantage to hide ill-gotten assets as well as curb tax policies.

Launch of “Analytical Reviews” section


Dear clients!

We are glad to inform you about the launch of “Analytical Reviews” section on our website. Since then you won’t have to look for financial analytics on third-party resources – you just need to visit the relevant section on the ForexMart website.

In this new analytical section it will be possible to find up-to-date information about popular currency pairs, trade ideas and recommendations, as well as analytical reviews, forecasts, charts and overall description of the current market situation.

We hope that this innovation makes your trade more convenient and pleasant. Stay tuned and remain abreast of the latest economic trends with ForexMart!

February 22, 2017

Hong Kong Ex-Chair Tsang Charged with Misconduct, Faces 20-Month Jail Sentence

Donald Tsang, the ex-chief executive of Hong Kong, has just been charged with grave misconduct while in office and has been sentenced to 20 months’ worth of imprisonment. This recent event is now being tagged as a conclusion for a downfall of a former person of political power who helped Hong Kong get through its worst financial crisis some time ago. Tsang has been charged of failure to properly disclose a certain conflict which appeared after Tsang rented out a luxury apartment whose owner was then applying for a broadcasting license in Hong Kong.

February 22, 2017

Singapore-Britain Deeper Collaboration

The sovereign states, Britain and Singapore held yesterday the renewal of their bilateral ties proving their dedication for stronger links with regards to economy and business. The partnership was signed by the countries representatives, Lim Hng Kiang, Singapore’s Minister for Trade and Industry and Liam Fox, the Secretary of State for International Trade from Britain.

Mr.Lim stated that this joint commitment will fight against protectionism and will continue to implement the free and open trade policy. He added that they will further work for an environment that allows for an open global trading.

The arrangement supplemented new programs which involve building trade policy capacity and creating an appointed committee that supports greater collaboration regarding trade and investment of the two countries.

February 23, 2017

Decline in Australia’s Business Investments

Business investments in Australia dropped for the fourth straight quarter as miners lessened while other sectors had increased their plan for expenditures for the year giving a hint of recovery. On Thursday, the report from the Australian Bureau of Statistics showed the decline up to 2.1 percent for the fourth quarter amounting to A$27.6 billion equivalent to $21.18 billion, higher than the expected downturn of 1 percent.


This was mainly influenced by the mining sector where spending has declined by 9 percent despite the recent increase in investments in the manufacturing sector. Even if the expenses on equipaments, factories and machineries which could boost the economy, were not sufficient after an unexpected decline in the last quarter. It is anticipated for figures to reach 0.6 to 0.7 percent economic growth in reports next week.

February 23, 2017

Venezuelan Food Expenses Affected by the Economic Crisis

A couple of years later the negative growth in the economy of Venezuela continues which brought about depressing stories regarding scarcity and difficulties every month. A particular news was published that according to the yearly national survey, almost three-quarters of the citizens stated for suffering weight loss with an average of 19 pounds during 2015 up to 2016.

The National Survey of Living Condition were supervised by three major universities in the country together with other groups of researchers. Further results include that respondents cut their meals and apt to ate less than 2 meals per day with a percentage rate of 11.3 in 2015 up to 32.5 percent in the previous year with an equivalent of 9.6 million individual.

The economic tailspin in Venezuela started in 2014 due to recession in oil prices worldwide coupled with the unexpected government fiscal policy and excessive dependence towards imports which caused the economy to make an abrupt stop.

February 23, 2017

Fed Officials Not Too Eager on Implementing Rate Hike in March

Contrary to the general market sentiment, the FOMC is not so keen on raising interest rates this coming March and might wait until such time that the market feels right enough to actually implement a rate hike. The central bank is more keen than ever to implement at least three interest rate hikes this year but its officials are not losing their patience just yet to actually impose a rate hike anytime soon. However, this could change depending on the release of subsequent economic data in the coming days, as these will become indicators on whether there is an actual need for an interest rate hike from the Fed.

USD/CAD Technical Analysis: February 24, 2017

The greenbacks softened versus the loonie. The focus were turned to the Consumer Price Index of Canada which is projected to exceed the possible result.

The USD was unable to contain its reversal the other day. The uptrend lost its steam within the region 1.3190 by which the spot met renewed offers.

The USDCAD remain being offered in the market on Thursday. Sellers was able to lead the price towards 1.3120 from the barrier 1.3190. The commodity-linked pair reached 200-EMA which became the support of the major as described in the 4-hour chart. Moreover, the 100 and 50-EMA were in the neutral zone while the 200-EMA descended. The USD attempted to reclaim the trend during the EU session. Resistance entered 1.3190, support settled around 1.3120. The MACD weakened which favored strength for the sellers. RSI headed to the downside.

The technicals featured an extension lower except for preserving the 1.3120 range. The 1.3090 mark is possible to retest upon moving under the mentioned range. Inability to surpass the mark will direct the pair towards 1.3190.

February 27, 2017

Expected Shift in Crude Futures as Much as $2B Will Put an End to Oil Glut


In the upcoming week, the passive investment funds are expected to rise to $2 billion from long-term to short-term crude futures, while the energy market surges after OPEC output reduced its supply. This is expected to put an end to global oil glut accumulated over two years of price war. Excessive oil supply in international inventories drove the prices to multiple year lows.


The Brent contract LCOK7 price established at $56.31 a barrel on May, while the LCOM7 price settled at $56.55 a barrel in June.On the other hand, the limit for the West Texas Intermediate crude remains the same. The gap between the first month and the subsequent month on Brent contracts LCOc1-LCOc2 has tightened from 79 cents down to 5 cents. However, both June and December contracts LCOM7-Z7 traded closely on Friday.

February 27, 2017

Macri’s Reforms Showed Signs for Economic Resurgence in Argentina

The economy of Argentina beefed up by 1.6% during the month of December compared with last month result according to the data from the government. This growth provided hints about the country’s possible expansion for the fourth quarter subsequent to an extensive economic depression. The Argentine Republic declined to 0.1% in December on an annualized basis and down by 2.3% in 2016 versus 2015. However, the current President of the country, Mauricio Macri executed several market-oriented reforms with a purpose of economic liberalization and inspiring additional investments which further influenced rampant inflation in the short-term.

The monthly development took place in December demonstrates the projected rebound of the economy in Q4 of 2016 following the four consecutive worst quarters. The INDEC, national statistics agency based in Buenos Aires, said the GDP data for Q4 is scheduled to release immediately after the nearby month.

GBP/USD Fundamental Analysis: February 28, 2017

The GBP/USD took a heavy hitting during the previous session as the pair’s bulls were unable to create a continuously good run for the pair since every time a bounce in the pair manifests, the pair immediately drops as it is met with major selloffs. There are still overshadowing concerns with the currency pair since the Brexit process is still ongoing, and this ensures that the GBP/USD pair will be unable to go higher for quite some time.

The GBP/USD pair was hit even more harder yesterday after rumors that Scotland is currently planning to implement another referendum in their favor in order to discern whether it would still be beneficial for them to continue becoming part of the UK. If this happens, then this would be disastrous for the UK economy since other parts of the UK might also be encouraged to do the same. This is probably the worst that could happen to the UK, especially since Scotland had initially voted to remain part of the European Union but was outvoted by the majority of UK members. But then further confirmation of this particular rumor never happened, and this caused the GBP/USD pair to bounce back from 1.2400 and is currently trading at just under 1.2450 points.

There are no major news releases expected from the UK today but the US will be releasing its Preliminary GDP data and consumer confidence data. The currency pair would most likely remain under pressure for today, with the 1.2500 barrier presenting a possibly limit to any kind of uptrend in the pair.

USD/CAD Fundamental Analysis: February 28, 2017

The USD/CAD had a strong bullish trade during the previous session after the bulls were able to regain its dominance over this particular currency pair. The bulls had previously attempted last week to gain control over the pair after the release of a dismal retail sales data from the Canadian economy but was eventually unable to do so after the release of a very strong CPI data. The bulls had also attempted to break through yesterday but has failed from last week’s range highs.

The currency pair’s strong resistance and support barriers of 1.3060 and 1.3000 respectively has led the market to believe that the USD/CAD pair is in for some major uptrend and is evident of the importance of the support barrier with regards to the struggle between the pair’s bulls and bears. Since the bears have constantly failed to break through this pair, the pair’s bears are currently in full dominance of the USD/CAD. The USD/CAD was previously consolidating within the 1.3100 barrier but a surge in the value of the USD helped in boosting the currency pair following’s Trump’s statement that he will be adding up the country’s infrastructure spending. The pair eventually increased in value after oil prices somewhat dropped in value.

This drop in oil prices could cause trouble for the USD/CAD pair in the short and medium term since Canada is very reliant on oil prices. The pair’s bears could become seriously affected once the dollar strength and weak oil prices come together since this could trigger the pair to move significantly upwards.

There are no major news coming from the Canadian economy today but the pair could get some volatility from the US consumer confidence data and Preliminary GDP which will be released today. The USD/CAD could possibly consolidate within 1.3100-1.3200 points with a bullish undertone.

EUR/USD Fundamental Analysis: February 28, 2017

The market saw a very dismal durable goods data reading while Trump continues to further delay his long-awaited tax cut policies, thereby contributing to the further dwindling of the value of the US dollar. As a reaction to this particular phenomenon, the EUR/USD pair was able to reach 1.0630 points in a matter of a few hours and seems poised to move further.

However, the US dollar suddenly reverted its losses for no apparent reason at all and this caused the EUR/USD to drop further to 1.0600 before settling at just over 1.0580 points. Some market analysts are crediting this sudden surge in the dollar’s value to Trump’s previous statements regarding the infrastructure increases, a favorite campaign topic of Trump during his candidacy. Previously, there have been rumors swirling around that this infrastructure policies would not come into effect until 2018, but since Trump has already re-discussed this particular proposal, the market has since then been speculating that the increase might be implemented within the year which could help in keeping the buoyancy of the market. The USD has been able to revert its losses as a result but the real determinant here would be the rate statement next month as well as the FOMC rates.

Now that the market is slowly shifting its focus from Trump’s policies towards the move of the Federal Reserve, it is highly likely that the market’s movements will be relying on the Fed’s decision on when they will be implementing the next rate hike.

There are no major releases coming from the eurozone today but the US will be releasing its consumer spending data as well as its Preliminary GDP data today which could bring in added volatility to the USD and affect the EUR/USD pair. The currency pair is expected to continue consolidating with bullish undertones for today.

February 28, 2017


Consumer Confidence of the Eurozone Plummeted

The consumer confidence of UK for this month declined while the British currency weakened. The prices rose and wage growth dwindled which influenced the Britain’s economic powerhouse.

The monthly household sentiment of GfK had a dipped and stayed below zero for the 10th month. The level for major purchases also decreased which implied that British citizens probably controlled their expenditures.

Another assessment by YouGov coupled with the Centre for Economics and Business Research is the job security index which further decline reaching its lowest result three years ago.

After the Brexit referendum, the private consumption as well as the services industry have compelled the economy, however, it set out some signs of economic strain. During the EU exit, the inflation increased as the energy cost climb higher together with the 16 percent cut in the sterling pound.

Furthermore, the growth of credit had a steep decline in December whilst retail sales inched up at its slowest pace since January 2014.

February 28, 2017

Steady Economic Growth of Australia as Exports Rises

The Australian economy is assumed to have recovered after surge in demand for exports and increase in spending from consumers and government. It is predicted that GDP report to be released on Wednesday with grow by 0.7 percent in last quarter after a decline of 0.5 percent in previous quarter. Companies’ earnings rallied as much as 20 percent in fourth quarter driven by an almost 50% boost from miners.


Rise in money flow from exports has a big impact to country’s income and its nominal growth. This signals Australian economy to surpass technical recession as it continues to move optimistically.

March 7, 2017

Brexit Supporters Push May to Examine EFTA Comeback

UK Prime Minister Theresa May is recently being urged by a panel of Brexit-supporting lawmakers to consider bringing the country back into the European Free Trade Association, a four-country organization which UK left way back in 1972 as a means of a starter to its trade negotiations which immediately follows the Brexit process. UK was one of the founding members of the said organization in 1960 but eventually left the EFTA in order for the country to become part of the European Union. Rejoining the EFTA could mean that the UK would be able to make use of the several free trade agreements created within the said organization.

March 7, 2017

Australia's Interest Rate Remained on Hold

Australia kept its interest rates steady on Tuesday, March 7, because the property prices of Sydney continued to increase its risk which exceeded a much lowered inflation rate. The Governor of Reserve Bank of Australia Philip Lowe concluded together with his board to remain the cash rate at 1.5 percent after a positive growth and optimistic performance in trading for the last three months of 2016.

According to the poll led by Bloomberg, the decision were already projected by all 29 economists.

Moreover, the housing demand in Sydney remained stable since buyers settled a property in the city which further ratcheted up debt records.

The central bank decided to maintain its policy despite of an extremely high house prices which partially stirred by the increasing population size coupled with the absence of family dwellings constructions.

Furthermore, the country’s economy rose by 1.1 percent in Q4 versus the past three months and the 2.4 percent gained from a year ago.