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July FOMC Meeting – Will it be a non-event?

July FOMC Meeting – Will it be a non-event?

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Summary: FOMC meeting is due on Wednesday, July 26th There will be no press conference after the FOMC statement Fed officials are likely to communicate further on the plans to unwind the balance sheet Markets expecting a less than 10% chance of a rate hike this week Overall odds of a rate hike for the rest of the year stands just around 50% Fed unlikely to change much of its communication The FOMC meeting this Wednesday, July 26th is likely to pass off as a non-event as investors were seen not expecting much from the central bank this week. The fact that there is also no press conference following the FOMC statement potentially lowers the odds of any surprises from this week's meeting. The fact that the Fed funds futures rate hike probability has odds of less than 1...
New Zealand June quarter CPI expected to disappoint

New Zealand June quarter CPI expected to disappoint

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The consumer price index data for the period ending June for New Zealand is expected to released this week. The economists polled are forecasting a 0.2% increase on a quarterly basis. This would signal a sharp slowdown in inflation from the 1% gain in prices registered in the March quarter. The gains in March were led by a spike in food and fuel prices. The RBNZ's forecast for inflation stands at 0.3% for the June quarter, slightly above the consensus estimates. It is no secret that New Zealand's consumer price index is often influenced by temporary factors. On a year over year basis, New Zealand's consumer prices are expected to rise 1.9%, slowing from 2.2% year over year increased in March 2017. Weaker CPI expected due to lower food prices Food prices, which played an importan...
Bank of Canada joins in the Fed in hiking interest rates

Bank of Canada joins in the Fed in hiking interest rates

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Summary: Bank of Canada hikes interest rates by 25 bps as expected BoC becomes the second central bank among G7 nations to join the rate hike club Rate hike is the first in nearly seven years BoC held interest rates steady at 0.50% for nearly 13-months Markets expecting another rate hike before the end of the year The Bank of Canada became the second G7 economy to join the rate hike club, following in the footsteps from the U.S. Federal Reserve. As widely expected, the Canadian central bank hiked interest rates by 25 basis points to bring the short term interest rates to 0.75%. This was the first rate hike in nearly seven years. "Governing Council judges that the current outlook warrants today’s withdrawal of some of the monetary policy stimulus in the economy. Fu
Worst 10 mistakes of managed forex investors

Worst 10 mistakes of managed forex investors

Trading Articles
We all make mistakes, but ours do not cost as much as these guys’: Toshihide Iguchi As a bond trader for Daiwa Bank’s New York office, Iguchi lost the bank $1.1 billion over 12 years from 1983 and 1995. His trades were consistently making losses, but rather than own up to his mistakes, he sold off the bank’s assets worth $733 million and customers’ securities worth $377 million. These illegal trades were done in an attempt to recover the lost money from his investments. Nick Leeson Working as a trader for Barings Bank since 1989, he initially made good profits, but then his luck turned and he started making losses. Instead of reporting them, he hid the losses, which accumulated to £208 by 1994. The largest losses came in 1995 when the Kobe earthquake hit Japan while he was h
What is a Multilateral trading facility (MTF)?

What is a Multilateral trading facility (MTF)?

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Multilateral trading facility  or MTF is a regulatory term in Europe for non-exchange financial trading venue. A non-exchange financial trading venue is an alternative to the more traditional stock or futures exchange. For example, forex is often traded over-the-counter with no centralized trading exchange. However, orders can be executed and matched at an MTF venue. An MTF works in the same way as a stock or a futures exchange and brings together buyers and sellers. In the United States, it is also referred to as an Alternative Trading System. A multilateral trading facility or MTF can be used as a stand alone entity to the stock exchanges. An MTF isn't as complex as one might think and one of the simplest examples is that of LMAX Exchange, which is allows forex trader access to CFD