3 reasons why the GBP may fall even lower – Deutsche Bank

Pelle

“1. Purchasing power parity, which evaluates the exchange rate equivalent to the price of “Big Mac”, between the two countries. Britain is experiencing a shock, which suggests that the GBP will reach the extreme historical undervaluation. 2. An alternative metric – a fundamental effective exchange rate. It estimates the rate needed to restore the country’s current account deficit to equilibrium, which we define as 20-year historical average, or in absolute annual terms, around 40,000,000,000 GBP, or 2.5% of GDP. 3. The main value of the assets. What exchange rate will…

Read More

Something strange is happening in the closing market time

Pelle

The stock market bounced after the unexpected decision of Britain to leave the EU. Does this mean that investors are willing to take risks again? Hardly. Strong traders risk in the day, but avoid risks overnight. Credit Suiss drew attention to the daily trading volume on the closing market . On average, the volume increased from 8.4% to 9.8% over the last 2 years, which means that traders cut positions before the market closes. There has been a lot of changes overnight The stock market is driven by macroeconomic events that…

Read More

The British Pound continues to suffer after Brexit

Pelle
Check out the latest Forex trading news, reviews, and bonuses from top Forex brokers!

The British pound fell to a new 31-year of minimum on Wednesday, amid fears of a political vacuum and exit of the country from the EU. The currency slipped to $ 1.2796, the lowest level since 1985, after closing at $ 1.2960 on Tuesday. Analysts are concerned that political uncertainty will have an impact on capital inflows and force companies to delay investment, pushing the economy into recession. The Bank of England has taken preventive measures to support the economy and stimulate lending by loosening capital requirements for banks. “As…

Read More

Gold will continue to rise – BlackRock

Pelle

Gold offers an excellent opportunity to hedge, which means that the metal will show significant growth, says Russ Koesterich of BlackRock. With the fall in bond yields, investors rushed to the precious metals, and gold has added 28% since the beginning of the year. “We are in the middle of sluggish economy and increased volatility. In such circumstances it is necessary a insurance for the portfolio, which is ideal for gold, “- he said. Since the “yellow metal” does not imply yields, investors will suffer considerably if real interest rates start…

Read More

LSE shareholders approved a merger with Deutsche Boerse

Pelle

On Monday, shareholders of London Stock Exchange Group Plc (LSEG), the operator of the London Stock Exchange (LSE), almost unanimously (99.89%) have approved a merger with Deutsche Boerse AG. The merger would create Europe’s largest securities market operator securities with a market capitalization of more than $ 27 billion. However, there remains uncertainty associated with the position of European Regulators in relation to the merger of two leading stock market operators. Thus, Berlin has insisted that after the decision of the British withdrawal from the European Union (Brexit) the headquarters…

Read More

Oil prices are beginning to stabilize – Minister of Saudi Arabia

Pelle

The global oil market is moving towards equilibrium, and oil prices are beginning to stabilize, said Saudi Oil Minister Khalid Al Fatih. According to the Saudi news agency SPA, the Minister held a meeting with the new Secretary General of the Organization of Petroleum Exporting Countries (OPEC) Mohammad Barkindo, to discuss the role of OPEC in maintaining the stability of the oil market. According to Khalid Al-Fatiha, Saudi Arabia with the help of OPEC is committed to continue to play an important role in providing the world’s growing demand for…

Read More

Australia’s trade deficit increased in May

Pelle

In May, Australia’s trade balance deficit widened to A $ 2.22 billion, against $ A1.79 billion in April, said the Australian Bureau of Statistics, while analysts had expected that it will be $ A1.7 billion. Exports rose by 1.0% and imports – by 2.0%. Retail sales gained 0.2% in May, while economists were expecting 0.3% gain. Meanwhile, April’s increase was revised down to 0.1% from 0.2%.

Read More

Goldman Sachs fires traders again

Pelle

Bank reduced the fixed income for 30 traders in the New York division, reliable sources claim. We remind you that the securities division has already been reduced in May and earlier in June were fired another 100 employees in New York. Banks have begun downsizing as a result of failure of the first half year. Especially disappointing was the first quarter. Managing Director of Goldman Sachs high-yield loans division, Erik Kramer, has decided to leave the bank. In addition, this week it became known that Joseph Mauro, head of fixed income division,…

Read More

The Bank of Japan may take new stimulus measures

Pelle

As it became known on Friday, consumer prices fell in May the maximum rates since 2013, nullifying the efforts to revitalize the central bank inflation. Core consumer prices, not taking into account food products, fell by 0.4% in May, compared to the previous year, confounding economists’ expectations. Business sentiment, meanwhile, remained unchanged. However, this survey was conducted before the referendum in the UK. The Japanese yen continues to rise, as investors flee to “safe haven”, after the decision of the UK to leave the EU. The dollar / yen was…

Read More