Articles

Trade from an informed place. We cover news, political events and market analysis plus product updates.

Articles

Trade from an informed place. We cover news, political events and market analysis plus product updates.

The Art Of War And Trading: Part 1

What Is The Art Of War? The Art of War is an ancient Chinese book on military tactics and strategy who written by Sun Tzu around 500 BC. These writings are considered by many to be the most significant literature on military tactics and wisdom that can be applied to everyday life ever conceived. In this multi-article series, we will be interpreting...

August 28, 2018
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Italy’s “First Budget” By the Populist Government

The newly-elected populist government in Italy will deliver its very first budget which will be pivotal to the Eurozone area. Italy has the second largest public government debt pile in Europe after the Greeks. The debt to equity ratio in Italy currently stands at 131.81% of its GDP, and market participants are questioning whether Italy will be a...

August 23, 2018
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Jackson Hole Symposium: Why Is It Important?

All eyes will be on the Jackson Hole in Wyoming this week, where the annual Jackson Hole Economic Symposium will be held by the Federal Reserve Bank of Kansas City. This years symposium will take place from 23rd until the 25th of August and the topic for the upcoming event will be “Changing Market Structure and Implications for Monetary Policy”...

August 22, 2018
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Greece’s Bailout Comes to an End – A Goodbye to the Troika

After eight long years of crisis whereby Greece endured stringent budget austerity programs, the country’s bailout will finally come to an end. Greece will therefore have to finance itself by borrowing on international bond markets. Before the bailout Greece was battling massive debt, loss of investment and huge unemployment. Nearly ‎€300b...

August 21, 2018
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August No Ordinary Month For GBPJPY

As Brexit concerns continue to weigh heavy on Pound Sterling crosses, there's not much to discuss from a technical perspective. Evidence of an overall bearishness sentiment dominates the charts with a few corrective moves thrown in for good measure. However, sifting through the layers of Sterling sameness, I uncovered something interesting relatin...

August 20, 2018
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Warning Signs Of An Economic Storm Front

In Economics, the difference between 10 Year and 2 Year Bond Yields is one of the leading indicators that help investors to observe any significant changes in the economy. Let's break things down a little further. Firstly, common sense dictates that if you want to make a term deposit in the bank, the rate you can get from the long-term deposit wil...

August 17, 2018
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NAFTA Update – Have US Negotiations Progressed?

It’s been one year since the trade renegotiations on the North American Free Trade Agreement (NAFTA) between Canada, the United States and Mexico began. Since then we have seen tough rhetoric on how the agreement should look like moving forward from each country, especially the United States. But are we finally getting closer to an agreement? Ab...

August 16, 2018
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Another Blow to the Emerging Markets

Emerging Markets (EMs) are being dragged down by the deepening crisis in Turkey. The collapse of the Turkish Lira has rattled the financial markets, ripped through the emerging FX markets and brought down the stocks markets at the start of the week. Fears have gripped the EMs over various issues at once. EMs have received not one but several pun...

August 15, 2018
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No Turkish Delight – Is A Currency Devaluation Of 40% Justified?

Most political scientists believe that all problems in the world are related to politics, and most economists believe that all problems are rooted in economics. However, what’s happening in Turkey now seems to be a combination of both as I'll explain. Firstly, investors have always regarded Turkey as one of the Emerging Markets with good economi...

August 14, 2018
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The New “Lows”

By ​Deepta Bolaky Trade and geopolitical risks were at the forefront of the meltdown that rattled the markets on Friday. Turkey’s currency crisis prompted a massive sell-off across the markets hitting the European banking sectors the hardest. Fears began to mount as investors freted its rippling effects on the global markets. The current risk...

August 13, 2018
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GBPAUD – Brexit ‘No Deal’ To Spark A 1000 Pip Move?

Since September last year, the British Pound has enjoyed a relatively easy time against the Australian Dollar, often described as a solid bull run. However, many fundamental drivers have turned sour for the Sterling crosses, and with GBPAUD in particular, we may be in for a significant price reversal. What's Driving the Pound Aussie Pairing? The...

August 13, 2018
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China Taking Stock Of US Trade Deficit Figures

The US official trade deficit number with China is $375.2bn in 2017. But According to China Customs General Administration, this number should be $275.8bn. Notice there is a vast gap between the versions from two sides. So, which version is closer to the facts? Firstly, let’s start this debate by looking at the US perspective. Previously in the...

August 9, 2018
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Venezuela – The New Zimbabwe?

Venezuela: A Latin American Crisis Venezuela’s economy has been in turmoil in recent times with its inflation skyrocketing and with no signs of slowing down, the situation may worsen. The political tensions have also been rising in one of the OPEC (Organization of the Petroleum Exporting Countries) member country whose economy has been slowly de...

August 8, 2018
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Emerging Markets and a Hawkish Fed

In 2018, we have seen a growing interest in the Emerging Markets (EM) as a lot of advisers or asset allocators have been upbeat about these markets. The emerging countries are improving on different factors such as stability of employment, growth in money or opportunity for innovation which make the overall outlook for EM promising. However, the...

August 8, 2018
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Lacklustre Gold Weighing Heavy On Markets

Free-falling gold prices The latest weekly chart for gold does not look favourable for the precious metal. Below we can see that in twelve of the past sixteen weeks, gold prices have ended down and is one of the worst runs for the metal in decades. What is surprising is that the demand for gold continues to fall despite an increasingly volatile ...

August 7, 2018
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