Posts belonging to Category US Dollar



THE STOCK TO BUY



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Europe sets up scheme to get round US sanctions on Iran

Vehicle will allow European firms to trade more freely with Iran

France, Germany and Britain have set up a financial mechanism designed to avoid US sanctions against Iran and keep the 2015 nuclear deal afloat. Through the Instex trade vehicle, they hope to assert European economic sovereignty in the face of Washington’s determination to impose its foreign policy on Europe. The strategy would initially focus on trying to ease the flow of humanitarian supplies to Iran, the German foreign minister, Heiko Maas, said. Such supplies, including medicines and foodstuffs, are not supposed to be subject to US sanctions.

Eventually, the plan is for the vehicle to expand to allow European firms to trade more freely with Iran in a range of goods, including those subject to US sanctions, the EU foreign affairs chief, Federica Mogherini, said. Instex, which stands for “instrument for support of trade exchanges”, was registered this week, and will act as a proposed payment channel from Europe to Iran, and vice versa. It will not be fully operational until later this year. Iran will be expected to establish a parallel organisation. If the scheme works, it is likely to be most useful to small- and medium-sized firms with no links in the US.

http://theguardian.com

Machines driving a ‘fire sale’ is a top market risk in 2019

30-item list of the most important drivers of financial markets risks

Deutsche Bank has produced a 30-item list of the risks it thinks will be the most important drivers of financial markets next year. Produced by Torsten Slok, Deutsche Bank’s chief international economist, the list spans everything from a market “fire sale” driven by trading algorithms to Britain leaving the EU without a Brexit deal.

After a turbulent 2018, which has seen stocks swing violently, it is time to look ahead to what might be in store as we head into the new year. With 2019 less than two weeks away,

Obvious worries, like the US-China trade war and the Fed’s continued increases in interest rates, feature prominently, but more esoteric risks, such as a house price crash in Australia also appear.

Check out the full list.

http://businessinsider.com

All Venezuelan Oil Will Be Sold In Petro Cryptocurrency

Experts see El Petro as nothing but a scam 

Venezuela’s President Nicolas Maduro said on state television that Venezuela would put in place in 2019 a program to sell all its oil production in the Petro cryptocurrency, which the leader is touting as the first state-backed oil-backed digital currency.

Gradually, Venezuela will sell all its oil production in Petro, Maduro said during a visit to Russia. For 2019, Venezuela will have a timetable to sell all its oil production in the cryptocurrency, its president said. In this way, Venezuela will free itself from the currency used by Washington “to create economic pain” to other countries, and to “persecute countries, as it does with Venezuela, Cuba, Iran, and Russia”, Maduro said.

El Petro, however, is seen by analysts and experts as nothing but a scam and another effort by Venezuela to skirt sanctions and mask the inability to overhaul the ailing domestic economy.

http://www.oilprice.com

 

Democrats take control of the House of Representatives in the midterm elections

What the split Congress means for Trump’s economy

As Democrats are projected to take control of the U.S. House of Representatives, some investors may find investing in the United States a less appealing proposition, according to one strategist.
The liberal party appeared to have won control of Congress’s lower chamber during Tuesday’s election, marking a triumph that gives the Democrats real levers of power to check President Donald Trump and GOP lawmakers. Experts told CNBC that markets will be looking to see how if at all the elections could affect America’s foreign policy — particularly regarding the trade war with China — but shifts to the nation’s domestic policy will also be of interest to investors around the world.

Trump criticizes the rise of interest rates

The Federal Reserve has ‘gone crazy’

President Donald Trump knocked the Federal Reserve for continuing to raise interest rates despite some recent market turbulence. “I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president said after walking off Air Force One in Erie, Pennsylvania for a rally. Fears about rapidly rising rates helped cause the Dow Jones Industrial Average to drop more than 800 points Wednesday. The S&P 500 posted its worst day since February and clinched its first five-day losing streak since 2016.
“Actually, it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing,” the President added. The Fed has raised interest rates three times this year and is largely expected to hike once more before year-end.
http://www.cnbc.com

Why gold is plunging

Gold is supposed to be a haven

Why has the price fallen lately? Simply put, it’s the strong US dollar.

Expectations for more interest rate hikes by the Federal Reserve have helped lift the value of the currency.
A stronger dollar often is a bad thing for gold because it makes the metal more expensive for international investors.
http://www.cnn.com

Turkey could be the next emerging market to fall into crisis

The Turkish lira has now lost 27% of its value this year

Economists had been expecting the bank to hike rates to fight inflation, which topped 15% in June. Many observers said the unorthodox decision showed that President Recep Tayyip Erdogan, who supports lower interest rates, has increased his influence over the central bank.
http://www.cnn.com

FED raises rates

“The economy is doing very well”

The Federal Reserve raised interest rates on Wednesday, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession.
In raising its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75 percent to 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy “for some time” and signaled it would tolerate inflation above its 2 percent target at least through 2020.
“The economy is doing very well,” Fed Chairman Jerome Powell said in a press conference after the rate-setting Federal Open Market Committee released its unanimous policy statement after the end of a two-day meeting.

US and China to reach an agreement at trade talks

Package of  $200 billion

It will be very challenging for the U.S. and China to come to an agreement about trade this week, in part because the Trump administration has been “unclear in what it really wants,” a strategist said on Friday.
“On the one hand, the President remains very focused on the size of the bilateral trade deficit, and reportedly the Chinese has come to Washington with a package of about $200 billion worth of purchases that would certainly remedy a large portion of that deficit,” said Amy Celico, principal at the Albright Stonebridge Group, a global strategy and business advisory firm.
But on the other hand, the U.S. administration and Congress want China to change some of its behavior on unfair trade practices, and seek to put an end to subsidies for advanced technology industries and forced technology transfers.

https://www.cnbc.com/

America's oil exports are booming

Prices are climbing

The resurgence of the oil industry can be traced back to what happened in Congress one day in December 2015. That’s when lawmakers ended the 40-year ban on U.S. oil exports. Crude pumped in Texas, Oklahoma and North Dakota could suddenly be shipped overseas.
At the time, a glut of supply was wreaking havoc on the energy industry. Crude eventually crashed to $26 a barrel. But that glut is disappearing, thanks in part to booming oil exports from the United States. Crude that was once trapped inside the country is now going to Europe, Latin America and even China.
The United States exported a record 1.7 million barrels of oil per day in October 2017, according to the most recent stats from the Energy Information Administration. That’s four times as much as in 2015, when federal law prohibited shipping oil to most places except Canada.
http://www.cnn.com…  January 29, 2018

What is Blockchain?

Bitcoin and Blockchain explained in detail

This explainer will offer simple definitions and analogies for blockchain technology. It will also define Bitcoin, Ethereum, blockchain broadly, and initial coin offerings, and highlight promising use cases for the technology. (For a deep dive into how Ethereum works, you can read our What Is Ethereum explainer.)
Lastly, this report will make clear the distinctions between distributed ledger technology and blockchain, and highlight where these technologies have an application – and where they do not.
http://cbinsights.com/… Wed., 03  January 2018

Bitcoin Futures Launch Sees Price Spike

CBOE Website Crashes

The Chicago Board Options Exchange (CBOE)’s website became unavailable just as it launched its first bitcoin futures contracts at 6 p.m. EST on Sunday.
The website downtime – which CBOE attributed to significant traffic around the futures launch in a post on Twitter – coincided with a sudden surge in the price of bitcoin, which jumped from $14,509 at 22:59 UTC to $15,732 at 23:06 UTC according to CoinDesk’s Bitcoin Price Index (BPI). Yet as of press time, CBOE’s website is becoming more available – delayed information about the contracts being offered can be found here – and the price of bitcoin has maintained a somewhat steady pace since that initial jump, trading at $15,226.29 per the BPI.
The data coming in thus far suggest that buyers are indeed moving to purchase contracts. Activity has been largely centered around the first contract to expire, dated January 17, 2018, with social media posts pointing to purchases of contracts scheduled to expire on March 14. According to CNBC, 672 January contracts have been sold as of 7:10 pm EST, with the news service reporting a price of $15,800.
http://www.coindesk.com… Mon., 11  December 2017

Bitcoin Rockets Above $12,000

Billion-Dollar Crypto Unicorns Swell to Nineteen

The cryptocurrency markets made another advance on Tuesday, fueled by continued bullishness over the impending launch of regulated bitcoin futures contracts on Sunday. Buoyed by this factor, the bitcoin price rose within striking distance of the $12,000 milestone, and the flagship cryptocurrency’s market cap came within a hair’s breadth of the $200 billion marker. Meanwhile, altcoins reaped the gains of a bullish market, and the number of cryptocurrencies with billion-dollar valuations swelled to a new all-time high of nineteen.
http://www.cryptocoinsnews.com… Wed., 06  December 2017

What is the future of Money?

Bitcoin, Dollars or Gold?

Type “Bitcoin is a Bubble” into Google and you’ll get 31,800,000 results, a clear indication of how many times people have, incorrectly so far, called a top in the price of the worlds most famous cryptocurrency. We’ve been studying it for years and have summarised our thoughts in a detailed report; “Bitcoin, Dollars, Gold: What is the Future of Money”
We see numerous potential tailwinds for Bitcoin, and for blockchain especially. Capital is flowing into the sector, millennials love it, and we also think governments and commercial banks are supportive of digital currency, as they have a general disdain for physical cash. Blockchain’s potential to disrupt multiple industries is also another tailwind. For those who want further evidence of its potential, we suggest reading “Banking is only the Beginning: 30 Big Industries Blockchain Could Transform”.
Finally, for as long as central banks the world over engage in the monetary largesse we’ve become accustomed to in the “post” GFC environment, more and more people will look for alternative monetary solutions.
http://www.livewiredmarkets.com… Mon., 04  December 2017