Market Overview

26 May 2020 13:33

Mark Goichmann

The Chinese Yuan climbed close to the 2020 highs, resting at 7.14 Yuan vs the US Dollar amid US-China trade tensions that has been flared up by the US administration. The Yuan/Dollar rate serves as a mirror of US-Sino relations and acuity of the dispute between the two largest world economies. The situation with the Chinese currency exchange rate may bear rather political reasons behind it, a kind of the last warning from Chinese authorities to the United States and the rest of the world.
20 May 2020 07:40

Mark Goichmann

The rise of crude prices in the beginning of this week was fueled by the global ease of the pandemic and hopes for a gradual economic recovery, as well as increasing demand for crude. The optimistic signals of increasing business activity embolden by US Federal Reserve's (Fed) Chair Jerome Powell who waved an expectation of economic recovery in the second half of 2020, helped oil prices. China shows rising demand for crude after reopening the economy in April. The crude refining in China was up by 11% in April compared to March, and even 0.8% above April 2019 levels.
13 May 2020 07:15

Mark Goichmann

Brent crude prices bounced from the bottom of $16 and settled around $30 per barrel, which seem to be a physiologically strong resistance level. This balance may sustain as many contrary factors affecting crude prices. From the demand side, there is a positive factor of a certain easing of restrictions imposed against the pandemic in many countries. Signs of business activity are emerging andthe driving season is close to opening. But there are also worries that the recovery in demand will be slow and it will not reach 30% of its fall or 30 million bpd.
8 May 2020 10:17

Mark Goichmann

A new swing in US-China relations over accusations from the US authorities concerning the covering up of important information on the origin or spread of the COVID-19 infection by China could potentially become a determining factor for markets. The White House, according to the media, is considering writing off part of the $1.1 trillion US debt owned by China. Washington sees the damage from the coronavirus pandemic that is to be compensated by China to be at as much as $160 billion. It seems that the US authorities have an enticement to turn this amount in its own favour.
5 May 2020 13:12

Mark Goichmann

Market risks associated with the pandemic are becoming more or less balanced as new coronavirus cases seem to stabilise. But the almost forgotten reason for worries is now reborn. The US-China trade tensions, now associated with the alleged concealment of information known to Beijing authorities on the harmful potential of the coronavirus in the early stages, have resumed. The treat of rising tariffs on Chinese imports came just as fragile signs of recovery are most haunted to restore global trade and communications.
30 April 2020 11:12

Mark Goichmann

Brent crude prices are coming up from the bottom of last week's prices which were below $16 per barrel to above $26. The emersion of crude prices may also be inflated by existing factors in May. These factors may be the decline of the pandemic that crashed the demand for oil. New case dynamics is weakening and many countries are preparing to ease the quarantine restrictions gradually or even substantially. A majority of European countries have already announced such plans. This may lead to an increase in business activity and the demand for oil. The overall inclination to risks has increased.
27 April 2020 10:22

Mark Goichmann

Gold is increasing its traditional role as a safe haven asset while a lot of fears have seen to squeeze markets and perhaps as a result, investors have sought protection amid uncertainty and high risks. The pandemic supports the mood for risk off and increases demand for hedge instruments. The decline in new cases of infection in most countries only strengthens the appetite for safe haven assets while economic indicators and released data are still reflecting a severely negative picture. The rise in gold prices is fueled by the Federal Reserve (Fed) and other central banks' policies.
22 April 2020 08:43

Mark Goichmann

The unprecedented plunge of oil prices at the beginning of this week triggered the weakening of the Canadian Dollar against the Greenback. But this factor is just one of the many that has hit the Loonie. USD/CAD hit 1.4264 yesterday and rolled back 1.4160 on Wednesday afternoon. The reason why the US Dollar straightened is due to a safe haven stance of the Greenback in times of the pandemic that provides significant advantage to the American currency.
17 April 2020 09:51

Mark Goichmann

The US Dollar is continuously reclaiming itself as the safe-haven asset as the Dollar-denominated assets like US Treasuries and other fixed income assets are considered most trusted assets in time of virus turmoil. It is no coincidence that huge additional liquidity poured by the Federal Reserve (Fed) and the US Treasury is being easily absorbed by the market that is suffering from a lack of Dollar liquidity. This is widely supported outside the US and strengthening the position of the US Dollar as a No 1 currency in the world.
15 April 2020 09:37

Mark Goichmann

The International Monetary fund (IMF) forecasted that the global economy would decline sharply by three % in 2020. The decline is much steeper than in 2009, which was a time of Global financial crisis when it fell by 2.3%. If this forecast is correct, the economy may have a hard landing, the hardest since World War II. It may be worth remembering that the IMF forecasted a growth of 3.3% of the world's GDP in January 2020 when the coronavirus already broke out in mainland China. Recent cataclysms drastically differ from the standard cyclical crisis, even the one suffered in 2008-2009.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

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Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.55% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.