Fundamental Analysis

The UK and EU agree a Brexit transition deal after May backs down on Irish border

The UK and EU agree a Brexit transition deal after May backs down on Irish border

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The United Kingdom and European Union have reached a political agreement on the terms of a post-Brexit transition deal after the UK agreed to a "backstop solution" which would keep Northern Ireland signed up to EU rules after Brexit. ...
What to Expect From the Fed’s March 21 Meeting

What to Expect From the Fed's March 21 Meeting

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At the meeting this week of the Federal Open Markets Committee, the first with Jerome Powell as chairman, the Federal Reserve is likely to raise interest rates by 25 basis points, renew its commitment to two more hikes of similar size in 2018, and reaffirm the plan to gradually reduce the size of...
Forex Week in Review – 19 March 2018

Forex Week in Review - 19 March 2018

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Last week was a mixed affair for the world’s major stock markets. In Europe over the course of the week, the FTSE was down on last week’s close by 0.84% at 7164.1; the Dax ended at 12390, 0.35% up on last week’s close; the CAC was up by 0.16% to end the session at 5282.8.…
Botched Assassination Likely To Generate Sanctions

Botched Assassination Likely To Generate Sanctions

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In a bizarre case that would normally be expected to grace the pages of an espionage thriller, a Russian double agent and his daughter were found in medical distress on a park bench in Salisbury, UK on 4/3/18. They were taken to a local hospital for treatment, but it was quickly determined that foul play…
USD Is Falling Despite Prospect Of Fed Hike

USD Is Falling Despite Prospect Of Fed Hike

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By Kathy Lien, Managing Director of FX Strategy for BK Asset Management. On Wednesday, the Federal Reserve is expected to raise for the first time this year but instead of strengthening into the monetary policy announcement, the weakened against most of the major currencies leading investors to wonder what’s behind the move. First and foremost,…
U.S. bans transactions with Venezuela’s digital currency

U.S. bans transactions with Venezuela's digital currency

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President Donald Trump on Monday signed an executive order barring any U.S.-based financial transactions involving Venezuela’s new petro cryptocurrency, as U.S. officials warned that it was a “scam” by President Nicolas Maduro’s government to further undermine democracy in the OPEC country. “The ...
Inflation Rebound Signals China Is No Longer a Source of Global Disinflation

Inflation Rebound Signals China Is No Longer a Source of Global Disinflation

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Strong Chinese Consumer Price Index (CPI) data for February suggest the world’s second-biggest economy will no longer be a source of global disinflation. China’s CPI rebounded by 2.9% year-over-year (YoY) in February, the strongest rise since 2013. Although the Chinese New Year holiday boosted fo...
Global risk conditions now a weaker driver of global liquidity

Global risk conditions now a weaker driver of global liquidity

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Global factors, including the monetary policy of advanced economies and global risk sentiment, are important drivers of international capital flows (Forbes and Warnock 2012, Miranda-Agrippino and Rey 2015, Cerutti et al. 2017a, Cerutti et al. 2017b). But how does the sensitivity to such global...
Fed set to raise rates as Powell gives 1st news conference

Fed set to raise rates as Powell gives 1st news conference

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The Federal Reserve’s first meeting under Jerome Powell’s leadership will likely end Wednesday with an announcement that the Fed will resume its modest interest rate hikes. But investors will be most attuned to what Powell signals at his first news conference about whether and how he might steer ...