CCY Effects on China Central Bank Rate Move

As we all know by now that the financial markets since the past few years has been dominated by central bank policy makers. Reading, analyzing and interpreting language and intentions for clues of direction can be taxing, confusing to a certain point of uncertainty.

Today's move by China central bank in increasing their central rates by a 0.54% points have given another surprising blow to currency traders. Although, our take on this move have apparently been more subdued to the fact that China's central bank would really have some difficulty to relinquishing control and hold of this powerful tool to take control of their economy. Aside from the fact that it would a great pride for China whenever the IMF would recognize the Chinese Renminbi (Yuan) to be part of the basket as a global reserve currency.

 USD vs.Chinese Yuan as of Nov 02 Asia Trading Session

This move is currently the biggest gain since the previous devaluation which was interpreted as as way for China to stay afloat and be more fairly competitive in the global markets. The present move would have a positive effect; not only for China's economy which has been claimed to be reaching stability along side with the global markets. Click to continue

N225 Continues Strength: Justifies Market Call

Focus on Asia Market

With the Bank of Japan staying on the course of its monetary policy, the renewed strength of the N225 have been a steady climb contrary to its short-lived daily market correction from it recent high @19746.20 dated the 25^th of March until the 1^st of April 2015. This simply means that the next continuing leg higher was in the making. Thus, seeing a new found high currently @19845.53 to this writing, have made it clear that the next leg is well in place from the previous call made last Feb. 20, 2015 (Market Insight: Dow Indices ETFs).

N225 Continues Strength: Justifies Market Call

CCY Corner - EURGBP XRate & DXY

The Euro's decline continues as the ECB reports on QE have already been confirmed with an expected boost with a total amount of USD1.2T or an equivalent of 60B Euros monthly until September 2016. This has been the driving force of the markets where the highlights of market moving events have been dominated by central bank moves. A list of CBs monetary policies entering the 2015 is seen as a follow through were efforts of central bank decisions to control EU deflation or tame global inflation played well. 

Prices in the foreign currency market have been driven by these fundamentals more than a real free-flowing market. As we have mentioned that these are exceptional times with the US Dollar taking the lead currency pair in value among all of its global counter currency pairs. 

With that said, the choice of the EURGBP Xrate for the start of the year have seen a gradual decline because of the market's critical price levels and tensions created from the ECB QE program. And much to these Central bank moves; China's market talk of a similar move from the SNB would eventually curve a niche to stay competitive in value and keeping in check with global trade against declining foreign currency value. Somehow CCY value would have to find an equilibrium levels until such time when the USD would have to adjust from its current strong value.

CCY Corner - EURGBP XRate

Why Forex Majors & Cross Rates?

The popularity of trading the Foreign Exchange market has exponentially grown over the past three decades since we could remember. Having encountered countless traders, where the majority are so familiar and more knowledgable when it comes to the Forex majors.

With a globally linked trading mechanism in place when discussing about the Foreign exchange market, the Majors currency Pairs has always been in the limelight. This has been the priority & most basic information for any financial institution providing feeds or a varity of financial news coverage in the market. The obvious reason is simply that majority of businesses and economies in different parts of the world runs under their respective currency flagship. The assortment of industry levels that deals with trade in a global perspective will always be concentrated with a balance between nations currency values.

Traders have always asked...Why go beyond the Major Currency pairs, while majority of the trades nowadays are made simple towards the majors?

Why FX Majors & Cross Rates?

GBP Reinforced Trend

Post UK Unemployment: GBP Rebounds 

With the UK Unemployment rate figure dropping to 7.1% as reported today alongside the BoE minutes on its monetary policy, the GBPUSD currency major jumping to as high as 1.6580 in the early morning sessions of the US market.

In the past statements made by the Bank of England is that it would only consider raising rates when the unemployment figure would decline to a 7% low. And this has been the threshold or may even be set as the BoE benchmark before any movement on rates would be made. However, traders were quick on the draw and helped push Cable to its recent highs.

And this price action may find support in the price momentum and a considerable follow through when volume build up and more likely a new set of forward rate guidance to anticipate that the BoE may start considering its move ahead of time.

GBP Reinforced Trend