Forex News from InstaForex

[IFX Gertrude]

Fxwirepro: Singapore Dollar Erases Previous Gain Against US Dollar, Bias Turns Bullish



USD/SGD is currently trading around 1.3460 marks.
It made intraday high at 1.3580 and low at 1.3432 levels.
Intraday bias remains bullish till the time pair holds key support at 1.3432 marks.
A daily close below 1.3432 will drag the parity down towards key supports at 1.3357 (April 20, 2016 low)/1.3318/1.3302/ 1.3271 levels.
Alternatively, a sustained close above 1.3538 will tests key resistances at 1.3646, 1.3799, 1.3836, 1.3851(March 16, 2016 high), 1.4073 (20D EMA) and 1.4132(20D, 30D and 55D EMA crossover).
Important to note here that, 20D, 30D and 55D EMA heads down and confirm the bearish trend. Current downside movement is short term trend correction only.

We prefer to take long position in USD/SGD around 1.3450, stop loss 1.3410 and target 1.3502/ 1.3538 marks.

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[IFX Gertrude]

Nikkei surges to 3.6 percent



Following the rise of U.S. stocks, Japan's Nikkei share average surged to more than 3 percent and by mid-morning the currency topped to 3.6 percent. In wake of the landslide victory of the coalition, Prime Minister Shinzo Abe's win has produced market confidence and has also directed a message to foreign investors that his policies are a sign for future growth.

Everyone in the Topix was in a bullish mood. Continuing last week's profit, Nintendo Co increased more than 20 percent with optimism that their new Pokemon GO smartphone will produce better outcome. Panasonic Corp surged by 6.6 percent and anticipates its lithium-ion batteries from Tesla Motors Inc to boost annual sales in the following years. The demand for exports produced a 3.7 percent rise for Toyota Motor Co and 3.8 percent for Tokyo Electron Ltd. JPX-Nikkei Index 400 increased to 3.4 percent with 11,245.46

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[IFX Gertrude]

UK Like-For-Like Sales Slide 0.5% In June - BRC



Like-for-like sales in the United Kingdom were down 0.5 percent on year in June, the British Retail Consortium said on Tuesday. That follows the 0.5 percent increase in May. Overall sales were up just 0.2 percent. For the second quarter of 2016, overall sales were up 0.5 percent on quarter and 1.2 percent on year.

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[IFX Gertrude]

Citigroup’s Decline Worth 350 Million Dollars



Citigroup Inc. has lost almost $350 million since 2009 to provide for Chinese consumers. Started in April 2007 when they began acquiring deposits from Chinese households which used to be a form of triumph that they celebrated. However, despite overall profitable operations in China they have faced regulatory impediments among the way in a variety of sectors that also reflects commercial difficulties and have only held about 2% of total banking assets in the country.

The public interest of foreign banks in China are limited since Chinese banks have boasted that they are able to match them. Accelerated growth in customers and further build up of consumer deposits and loans continue since 2015. Despite the development, Citi executives are troubled that the payoff is taking longer than what they have initially expected. Concerns also arise with local competition since state-owned banks produce thousands of branches and are difficult to displace.

In an effort to contribute more clients, In 2012, Citi has decided to cut the minimum deposit by a third. Citi continues to aim for the groups of wealthy Chinese people that will demand Citi's advice and service.

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[IFX Gertrude]

Yen Rises Against Majors



The Japanese yen strengthened against the other major currencies in the Asian session on Wednesday. The yen rose to 114.92 against the euro, 103.95 against the U.S. dollar and 105.16 against the Swiss franc, from yesterday's closing quotes of 115.78, 104.67 and 105.83, respectively. Against the pound, the yen edged up to 137.69 from an early near 3-week high of 139.48. If the yen extends its uptrend, it is likely to find resistance around 110.00 against the euro, 99.00 against the greenback, 101.50 against the franc and 128.00 against the pound.

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[IFX Gertrude]

Oil Production Slump Adds To Inflation of Venezuela



Venezuela's oil production has severely dropped. In June it has barely produced 2.15 million barrels of crude oil per day which is recognized as the weakest since 2003. This crisis indicates that the nation is dealing with a financial situation since Venezuela's economy is dependent on oil as it accounts for 96% of exports. It is the only country aside from Iraq that has reduced production for the previous month. As reported by the International Energy Agency, Venezuela has managed to produce 2.4 million barrels per day last year. Analysts affirmed that the failure of Venezuela lies in the fact that they haven't invested enough money to the oil industry. The fact that the country is facing enormous inflation is a result of the country's currency decline. Companies have found it difficult to adjust with the higher costs. Even though prices have increased, the continuous decline of production will result in oil revenue dropping further than expected

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[IFX Gertrude]

Bank Of Korea Keeps Lending Rate Unchanged At 1.25%



The Bank of Korea's monetary policy board on Thursday decided to hold the nation's benchmark interest rate steady at the record low 1.25 percent. That followed last month's surprise rate cut by 25 basis points from 1.50 percent after 10 straight meetings without a move. The bank noted that the global economy seems fairly stable, although the aftereffects of the UK's withdrawal from the European Union are unknown. "The board forecasts that, while the global economy will maintain its weak recovery going forward, it will be affected by factors including uncertainties related to Britain's exit from the European Union, changes in the monetary policies of major countries, and financial and economic conditions in emerging market countries," the bank said. Low inflation allowed the bank the flexibility to hold fire as consumer prices were up just 0.8 percent on year for the second straight month. On a monthly basis, inflation was flat. Core inflation, which excludes the volatile prices of fresh food, climbed an annual 1.7 percent on year and also was flat on month. "The board forecasts that consumer price inflation will remain at a low level for the time being, and then gradually rise as the effects of the low oil prices diminish," the bank said. In addition, the South Korean government said recently that it has planned fiscal stimulus as the economy is forecast to grow less than previously projected amid risks from corporate restructuring and external uncertainties caused by the UK's decision to leave the European Union. The ministry plans to introduce additional KRW 20 trillion funds into the economy, which includes an extra budget of around KRW 10 trillion. The stimulus will be financed by tax revenues and various state-run funds, the Ministry of Strategy and Finance said. No treasury bonds will be issued to raise funds. Gross domestic product is forecast to grow 2.8 percent this year instead of the 3.1 percent projected in December, the finance ministry said in its biannual report. "The board will conduct monetary policy so as to ensure that the recovery of economic growth continues and consumer price inflation approaches the target level over a medium-term horizon, while paying attention to financial stability," the bank said.

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[IFX Gertrude]

China Pledges to Defend South China Sea Control



China pledged it would take all needed actions in order to uphold its authority over the South China Sea and declared its entitlement to impose an air defense zone over the area, after vehemently rejecting the Permanent Court of Arbitration in the Hague's decision rebuking its claims to the disputed waters. The Chinese state media called the international court a “puppet” of outside forces following its ruling that China had violated the Philippine's sovereign rights by threatening its ships and intervening in its fishing zones and oil projects. Beijing promised to undertake all the needed measures to secure its territorial control and maritime rights according to a front-page report on the state's official People's Daily. The Philippines responded carefully to the decision released late Tuesday, calling for 'restraint and sobriety'. Presidential spokesperson Ernesto Abella reported that the mood at President Rodrigo Duterte's cabinet meeting held on Wednesday was “upbeat.”

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[IFX Gertrude]

China GDP +6.7% On Year In Q2



China's gross domestic product expanded 6.7 percent on year in the second quarter of 2016, the National Bureau of Statistics said on Friday. That was unchanged from the previous month, and it topped expectations for 6.6 percent. It was also the figure for the first half of the year. On a quarterly basis, GDP advanced 1.8 percent - exceeding forecasts for 1.6 percent following the upwardly revised 1.2 percent gain in the three months prior (originally 1.1 percent).

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[IFX Gertrude]

Emerging company in Singapore is a potential digital landlord



A rising company in Singapore is gambling $1.7 billion on dominating Asia's digital services for technology hubs providing cloud services in the region.

AirTrunk Pte is currently working on building data centers in Sydney and Melbourne, along with the growing demand for cloud computing services. The company, who plans to compete by offering lower prices, is also set to close deals in Singapore and Hong Kong.

AirTrunk prides in its new cooling and electricity delivery system as an edge against bigger corporations. It will be investing $1.23 billion in Australia in the coming months and $350 million next year.

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