xysoom's Blog

Friday, May 8th, 8:30(EST), US released April's Non-farm Payroll, which was much anticipated by the global market. Data suggests US non-farm payroll in April recorded the sharpest decline since 1939, down by 20.5 million (previous projection had been a 22 million decline). Unemployment rate rose to 14.7%, a record high, although little lower than the expected 16%.To get more news about WikiFX, you can visit wikifx news official website.
　　After the data was released, spot gold dipped shortly while the US dollar index spiked.
The positive market reactions such as the rise of USDX, boosted by data better-than-expected, were not surprising, even the sharp decline in the US non-farm payrolls in April was in line with expectation. The number of American jobs has been declining since the pandemic hit US, causing massive close-down of US companies. In the past seven weeks, the number of initial applicants for unemployment assistance in the United States totaled 33.48 million. Taking five weeks as a unit for calculation, this means that the US is seeing the worst unemployment situation in the past fifty years.
　　But in fact, with the surge in unemployment, the financial market digested this bearish factor before NFP data was released. Therefore, the financial market did not experience major fluctuations when the data turned out in line with, or even better than previous forecasts.
　　China's situation is completely the opposite to that in US. As the country gradually got rid of the epidemic, China's economy has begun to recover, with many of the key indicators rallying as well. China ‘s Caixin Services PMI for April released on May 7th recorded 44.4, up 1.4 percentage points from March; the April export data released by China ’s General Administration of Customs showed that April s exports increased by 8.2% year-on-year, significantly exceeding the expected 11% decline.Supported by rallying market confidence and economic data, the RMB exchange rate is currently going up-slope. With the improvement of the epidemic situation, several states in the US are ready to reopen economy and put people back to work. It is expected that dollar's liquidity shortage will eventually ease, and dollar may gradually decline in the future.
　　For more financial information and forex market updates, please visit WikiFX official website or download WikiFX App.

May 15th, from WikiFX. U.S. hedge fund tycoon David Tepper recently said that the current US stock market is one of the most overvalued markets he has seen, other than that in 1999.To get more news about WikiFX, you can visit wikifx news official website.
　　He believes that certain large technology stocks such as Amazon and Facebook may have been “fully valued”, saying that “the market is pretty high, and the Fed has put a lot of money in here”.
　　In addition, there has been various capital misallocations in the markets, and the estimated S&P 500 forward price-earnings ratio for the next 12 months has surged to over 20, the highest level since 2002. Tepper said his stance is “relatively conservative” and he remains “very cautious”. He currently holds about 10% to 15% of long positions in equities.
　　Relevant US statistics show that, the position allocation of retail investors shows that they are actually vigilant about the unusual rise in the stock market. Since the 1920s, the stock market has never been able to rise against the sluggish fundamentals during the recession, but investors began to believe in bottom-fishing strategies after the subprime mortgage crisis, and the stock market full of “bottom buyers” has seen faster but very unstable rally.

We know that the Central Bank of India always emphasizes that it will intervene in the foreign exchange market to curb any inappropriate fluctuations. However, the enthusiasm of investors and brokers for the Indian foreign exchange market has never diminished. Many brokers such as FXTM, FXPRO and XM have expanded their businesses in India in order to grasp the huge opportunity in retail forex brokerage.To get more news about WikiFX, you can visit wikifx news official website.
　　What are the restrictions on trading forex in India？
　　The Reserve Bank of India (RBI) stipulates that residents are allowed to open accounts for forex futures and options on stock exchanges under the supervision of SEBI, such as NSE, BSE and MCX-SX. However, the above-mentioned exchanges only offer futures and options on a few common currency pairs (USD/INR, JPY/INR, GBP/INR and EUR/INR) and popular cross currency pairs (EUR/USD, GBP/USD, USD/JPY).
Although forex trading in India faces multiple restrictions, it can't stop the pace of traders. It's not uncommon for investors to try to bypass the ban and use electronic wallets such as Neteller or Skrill to complete transactions with international forex brokers. These e-wallets are funded by credit cards or Indian bank accounts.
　　A few tips on electronic wallet transactions
　　Electronic wallets are favored by Indian investors because of their advantages in transaction speed and security. But despite the convenience in trading, investors should still remain alert. Whether it's an Indian broker or international one, remember to carefully verify its compliance before making the investment.
　　So far, WikiFX App has recorded profiles of more than 18,000 traders and more than 30 regulatory authorities, integrating multiple functions such as broker inquiry, market trend update, risk exposure and forex discussion forum. If you have any doubt about a certain broker, just enter the name of the broker you want to check in WikiFX App and get its comprehensive profile immediately. Click here to explore more features: https://bit.ly/3ajawKO

May 15th, from WikiFX. U.S. hedge fund tycoon David Tepper recently said that the current US stock market is one of the most overvalued markets he has seen, other than that in 1999.To get more news about WikiFX, you can visit wikifx news official website.
　　He believes that certain large technology stocks such as Amazon and Facebook may have been “fully valued”, saying that “the market is pretty high, and the Fed has put a lot of money in here”.
　　In addition, there has been various capital misallocations in the markets, and the estimated S&P 500 forward price-earnings ratio for the next 12 months has surged to over 20, the highest level since 2002. Tepper said his stance is “relatively conservative” and he remains “very cautious”. He currently holds about 10% to 15% of long positions in equities.
　　Relevant US statistics show that, the position allocation of retail investors shows that they are actually vigilant about the unusual rise in the stock market. Since the 1920s, the stock market has never been able to rise against the sluggish fundamentals during the recession, but investors began to believe in bottom-fishing strategies after the subprime mortgage crisis, and the stock market full of “bottom buyers” has seen faster but very unstable rally.

Since the outbreak of the COVID-19 virus in late January 2020, global demand for crude oil and oil products has fallen sharply due to the pandemic, possibly by 3% or more. Under this situation, oil prices have plummeted. In the face of falling demand, Saudi Arabia tried to persuade OPEC to cut production by 1.5 million barrel/day, provided Russia followed suit. However, it was rejected by Russia. Companies in Russia did not want to miss out on cash flow and lose the market. After Russia refused to join the cut plan, Saudi Arabia announced over the weekend of March 7-8, 2020 that it would increase crude oil production and cut prices sharply.To get more news about WikiFX, you can visit wikifx news official website.
　　Financial industry has suffered a heavy blow.In particular, both the ruble and the rial depreciated. Forex traders who bought those two currencies had suffered serious losses. Crude oil is a basic raw material for macro economy. The surplus of crude oil means that the economic development is in a declining trend.
1: A fall in oil prices could widen credit spreads on US high-yield bonds and raise the risk of default. Also, the sharp fall in oil prices has led to forced liquidations and local liquidity risks. Moreover, the proportion of commodities allocated by financial institutions has fallen sharply, and the collapse in oil prices could trigger the spread of panic.
　　2: The falling oil prices could trigger deflation. The direct impact is to hold down the cost of petroleum consumer goods, and the indirect impact is to lower PPI and CPI by suppressing production costs.
　　3: The sharp fall in oil prices has led to the redistribution of global income. One result is that global income will be transferred from oil exporting countries to oil importing countries. The income of oil exporting countries will thus decrease, further leading to a decline of demand in importing countries and withdrawal of funds.
　　
　　Looking ahead, there are three factors affecting oil prices which investors need to pay attention to.
　　1: The development of the global COVID-19 epidemic. If the epidemic could not be controlled on the global scale and continues for a long time, the oil producers could not get demand of oil from the supplies side and the demand side, which ultimately leads to a decline in global oil demand.
　　2: The negotiations between major oil-producing countries. Trapped by domestic political and economic pressure, Russia is unwilling to compromise on productions cuts and has declared that it can withstand oil prices at 25-30 dollars per barrel for 6-10 years. However, after negotiations broke down, the ruble immediately depreciated 9.5% against the US dollar. Therefore, the oil prices also depend on the attitudes of countries and how they weigh the economic pros and cons.
　　3: Attitudes of other oil-producing countries.
　　Saudi Arabia and Russia are in a tit-for-tat at this moment, while other oil-producing countries have also issued production expectations, which could trigger an oil price war if other major oil-producing countries join in.
The influence of oil slump in other industries.
　　1: Transportation:
　　Fuel costs account for 30% of airlines total cost. When the fuel costs are down, that is good for airline companies. But, according to the International Air Transport Association data: the airline industry could lose 63-113 million dollars due to the epidemic. There are many airline companies facing bankruptcy, so the oil demand declines sharply. The surplus of crude oil means that the economical development is trend to negative.
　　2: New energy industry.
　　At present, new energy is being developed all over the world. In order to find the alternative clean energy, the developed countries led by OECD pay more and more attention to energy efficiency. The fall in crude oil price will have a certain containment effect on the development of new energy.
　　3: Petrochemical industry.
　　The costs of petrochemical-related raw materials will go down, which is beneficial to producers of plastics, rubber, tires and so on in the downstream chemical industry chain.
　　Declaration:
　　The evidences in WikiFXs exposure articles are verified via the following processes:
　　1: Evidence Collection: (Chatting history records, Trading history records, Banking Transaction records and video recordings from victim).
　　2: These evidences will be evaluated and verified by experts who have been work in forex industry for many years.
　　3: The editor will review it again before the article is published.

Argentina may have to dole out at least $880 million in subsidies this year to keep its state airline afloat, further weighing on government finances after the nations ninth sovereign default.To get more news about WikiFX, you can visit wikifx news official website.
　　Pablo Ceriani speaks during an interview at the companys headquarters at Aeroparque in Buenoes Aires, on May 18.
　　Photographer: Sarah Pabst/Bloomberg
　　“One of the conditions for profitability is demand, and that won‘t be normal until 2022,” Ceriani said from the airline’s headquarters in local airport Aeroparque Internacional Jorge Newbery. “We‘re planning to curb structural losses in a sustained way from then onwards. That’s the reasonable horizon in this situation.”
　　Like airlines worldwide, Aerolineas Argentinas‘s operations have been paralyzed by coronavirus fallout. Argentina implemented some of the earliest and harshest measures in Latin America to halt the spread of the virus, such as halting commercial flights until Sept. 1. But unlike the airline’s global peers, Aerolineas Argentinas is committed to weathering the crisis without any layoffs for its 12,000 employees, according to Ceriani.
　　“Its a policy aimed at keeping jobs,” he said. “Cutting incomes hurts workers already going through an economic crisis.”
Still, the company now plans to temporarily suspend about 7,500 workers in June and July, according to a person with direct knowledge of talks with labor representatives. Separately, the airline said on Sunday that it is in advanced negotiations to “reprogram” payments to Brazils Banco Nacional de Desarrollo Economico y Social (BNDES) and Banco de la Nacion Argentina.
　　Argentina‘s flagship carrier has depended on subsidies since being nationalized in 2008, but the gap has been exacerbated by a 50% plunge in the peso, plus a devastating recession and double-digit inflation. Airlines’ two biggest costs are fuel and planes, both of which are typically paid for in dollars. It has managed minimal savings during the pandemic, including on travel expenses.
　　Read More: Airline Default Risk Stalks Latin America at Twice World Average
　　Ceriani expects activity to start recovering in the second half of 2021 and to resume investing in growth after 2022, when it aims to boost its fleet, including by adding wide-body cargo planes that he aims will primarily fly to and from China and the U.S as part of a new focus on cargo shipping.
　　In the meantime, it will merge with sister airline Austral Lineas Aereas, a plan that added to the cargo shipping and a new maintenance unit, is estimated to allow $100 million in savings over three years. The carrier weighs blocking middle seats in all cabins as it strategizes for a safe return to operations, he said. Restoring flights to each of Argentina‘s provincial capitals would mean operating at 25% of usual activity in the domestic market. Foreign travel probably won’t start until after November, Ceriani said.
　　“This year will likely be the hardest in the history of Aerolineas Argentinas, just like it will probably be the worst year in the history of aviation,” he said.

Forex trading sounds frightening but you will leave with a different impression after this article.To get more news about WikiFX, you can visit wikifx news official website.
Foreign Exchange, or Forex in short, is the business of trading currencies. Think about changing money for your last holiday overseas. You exchanged your local currency to the currency of your holiday destination (eg SGD to USD).
　　What affects the prices of currencies？
　　The exchange rate of a currency against another currency is often a reflection of the condition of the countrys economy compared to the economy of another country.
　　If you are optimistic on the future economy of the USA and are less optimistic on the future economy of Japan, then you will buy USD and sell Japanese Yen (JPY).The above 8 currencies are responsible for the majority of the trading activity in the Forex market.
　　Much of the world‘s economic trading also revolved around these 8 countries, with the exception of China which has been omitted from the list because trading of the Chinese Yuan is controlled by the People’s Bank of China (PBOC).　　From the graph, we are able to see that USD is involved in the majority of currency trading activities, representing nearly 85% of the transactions.
The table above lists all the major currency pairs that can be traded. They make up a whopping 75% of all trading volume! These 7 currency pairs are also known as “majors”.
　　Did you notice that USD is in every major currency pair？ USD makes up about 75% of all trading transactions, so it is right to conclude that USD is the king in the Forex market.
　　The pairs that are not listed above are known as “crosses”. AUD/CAD, EUR/GBP, EUR/JPY, GBP/JPY are examples of crosses.
　　Conclusion
　　Great! You are familiar with the major currencies which traders focus on, that Forex is always traded in pairs, and the less known trading pairs are called crosses. 、An independent trader who seeks to educate through his own trading experiences, Jay began his own trading journey at the age of 22.
　　He is a self-taught trader who has read more than 200 books on trading and investment since college and created his trading methodologies modelling after several successful veteran traders.Jay has since amassed 10 years of experience trading different market conditions with consistency. Of the many disciplines in trading, he specializes in trading options, swing trades on equities, currencies,futures and contract-for-difference (CFDs).

The Dow Jones, S&P 500 and Nasdaq Composite soared into Fridays close after temporarily trading in the red. The former still ended the day -0.07% while the latter two closed +0.48% and +1.29% respectively. This turnaround in sentiment weighed against the anti-risk Japanese Yen while the growth-linked Australian Dollar followed the rise in global equities.To get more news about WikiFX, you can visit wikifx news official website.
For most of Friday, investors were anxiously awaiting President Donald Trump‘s news conference on China. This was in response to the latter endorsing a proposed security law for Hong Kong. In fact, sentiment deteriorated during morning North American trade as the White House weighed sanctions against China’s finance sector. Perhaps fears that the Trump administration could also levy tariffs worried traders.
　　Ultimately it seemed that the worst-case scenario priced in by markets was avoided, for now. For one thing, reports crossed the wires that Trump was not planning on quitting the phase-one trade deal. He formerly announced that the country would revoke Hong Kongs preferential treatment status. Stock markets cheered his presser, sinking the haven-oriented US Dollar.
　　Mondays Asia Pacific Trading Session
　　With that in mind, Asia Pacific equities could follow Wall Street‘s rosy lead to start off the new trading week. Gains in Japan’s benchmark Nikkei 225 and Australias ASX 200 may offer support for the Australian Dollar and New Zealand Dollar.
　　This could come at the expense of the US Dollar and Japanese Yen. Caixin China manufacturing PMI (May) will cross the wires later today. The data could reveal further insight into how the economic recovery is unfolding in the worlds second-largest economy.
　　Wall Street Technical Analysis
　　Below is a 4-hour chart of my Wall Street index which averages Dow Jones, S&P 500 and Nasdaq Composite futures. Prices failed to confirm a breakout under key rising support from the middle of May – pink lines. This leaves the index facing peaks from last week as US equities, on average, attempt to push towards highs from March. Keep an eye on RSI which could reveal negative divergence, a sign of fading momentum.

The U.K. government is preparing to unveil an economic stimulus package in July as it steps up attempts to lessen the depth of the recession caused by the coronavirus pandemic, the Financial Times reported, citing unidentified government officials.To get more news about WikiFX, you can visit wikifx news official website.
　　Chancellor of the Exchequer Rishi Sunak is working on proposals to invest in training programs, infrastructure and help for technology firms, it said. He will also make a major speech in June to encourage people back to work as the shuttering of businesses to stem the transmission of the virus leads to a surge in unemployment.
　　Sunak on Friday refused to say if he would hold an emergency budget this summer, but officials told the FT that plans were being developed for a “fiscal event” in July.
　　A Treasury spokesman told Bloomberg that “we announce events like this in the usual way and we are not doing that now.” One government official said work was under way on further steps to support the economy but described weekend reports on the content of any package as speculation.
　　Sunak has warned the U.K. is facing a significant recession, with the Bank of England foreseeing a 25% contraction this quarter as part of the deepest slump in more than three centuries. The Treasury on Friday announced an incremental tapering of its job support program in a bid to avert a mass wave of unemployment.
　　U.K. banks are warning that up to half of the 18.5 billion pounds ($23 billion) accessed by small firms via the governments “bounce back” loan program are unlikely to be repaid, the FT said, citing three unidentified senior bankers. While the loans are 100% guaranteed by the state to spare banks from credit risk, they have been told to use their normal approach to collections, meaning hundred of thousands of businesses could collapse.

Several Australian states eased social distancing restrictions
further on Monday, allowing restaurants to host more people and public
attractions to reopen, as the government moves to revive an ailing
economy through accelerated infrastructure spending.To get more news
about WikiFX, you can visit wikifx news official website.
　　Australia
has recorded about 7,200 coronavirus cases and 103 deaths. And, with
new infections now largely under control, the government has embarked on
a three-step plan to remove the bulk of curbs by July.
　　In
Australia's most populous state, New South Wales (NSW), a maximum of 50
people are now allowed to sit down for a meal in a cafe or restaurants,
while 20 can attend a funeral. The previous limits were set at 10.
　　Public attractions, such as art galleries, museums, and libraries and zoos were also allowed to reopen.
　　“It's
pretty crazy being back out into society and were super excited to get
to the zoo,” Elizabeth Conlon, who took her two kids to Sydney's Taronga
Zoo, told Reuters.
　　“They were very excited this morning, getting
up and knowing that it was a zoo day. We used to come to the zoo all the
time as well, so its very exciting to get back here.”
　　While
reopening public spaces for the first time in several months,
authorities have said there will be limits on the number of people
allowed to enter in a bid to ensure there is no second wave of
infections.
　　Each site will need to ensure a social distancing norm of 1.5 meters between visitors is observed at all time.
　　In
Victoria state, which has taken the most cautious approach to
reopening, restaurants and cafes could reopen on Monday. However,
patrons are restricted to a maximum of 20 people.
　　Australia hopes
removing restrictions will boost economic growth, though Prime Minister
Scott Morrison said on Monday that additional, targeted stimulus would
be needed.
　　Australia's government and central bank has pledged
about A$250 billion ($167 billion) in stimulus, though the bulk of this
is expected to end by September.
　　The government is considering a
plan to offer homeowners one-off grants for renovations, while federal
infrastructure projects will be bought forward, Morrison said.
　　He
added that the government plans to spend another A$5.25 billion to
extend a train route to a airport being constructed in the west of
Sydney.
　　“A big part of coming out of the COVID-19 crisis is our infrastructure spending,” Morrison told 2GB Radio.