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How Central Banks Impact the Forex Market

Central banks are mainly responsible for maintaining inflation in the interest of sustainable economic growth while contributing to the overall stability of the financial system. When central banks deem it necessary they will intervene in financial markets in line with the defined “Monetary Policy Framework”. The implementation of such policy is highly monitored and anticipated by forex traders seeking to take advantage of resulting currency movements.To get more news about WikiFX, you can visit wikifx.com official website.
  This article focuses on the roles of the major central banks and how their policies affect the global forex market.
  Central Banks are independent institutions utilized by nations around the world to assist in managing their commercial banking industry, set central bank interest rates and promote financial stability throughout the country.
  Central banks intervene in the financial market by making use of the following:
  Open market operations: Open market operations (OMO) describes the process whereby governments buy and sell government securities (bonds) in the open market, with the aim of expanding or contracting the amount of money in the banking system.
  The central bank rate: The central bank rate, often referred to as the discount, or federal funds rate, is set by the monetary policy committee with the intention of increasing or decreasing economic activity. This may seem counter-intuitive, but an overheating economy leads to inflation and this is what central banks aim to maintain at a moderate level.
  Central banks also act as a lender of last resort. If a government has a modest debt to GDP ratio and fails to raise money through a bond auction, the central bank can lend money to the government to meet its temporary liquidity shortage.
  Having a central bank as the lender of last resort increases investor confidence. Investors are more at ease that governments will meet their debt obligations and this heps to lower government borrowing costs.  The Federal Reserve Bank or “The Fed” presides over the most widely traded currency in the world according to the Triennial Central Bank Survey, 2016. Actions of The Fed have implications not only for the US dollar but for other currencies as well, which is why actions of the bank are observed with great interest. The Fed targets stable prices, maximum sustainable employment and moderate long-term interest rates.
  The European central bank (ECB) is like no other in that it serves as the central bank for all member states in the European Union. The ECB prioritizes safeguarding the value of the Euro and maintaining price stability. The Euro is the second most circulated currency in the world and therefore, generates close attention by forex traders.
  The Bank of England operates as the UKs central bank and has two objectives: monetary stability and financial stability. The UK operates using a Twin Peaks model when regulating the financial industry with the one “peak” being the Financial Conduct Authority (FCA) and the other the Prudential Regulating Authority (PRA). The Bank of England prudentially regulates financial services by requiring such firms to hold sufficient capital and have adequate risk controls in place.
  The Bank of Japan has prioritized price stability and stable operations of payment and settlement systems. The Bank of Japan has held interest rates below zero (negative interest rates) in a drastic attempt to revitalize the economy. Negative interest rates allow individuals to get paid to borrow money, but investors are disincentivised to deposit funds as this will incur a charge.
Central banks have been established to fulfil a mandate in order to serve the public interest. While responsibilities may differ between countries, the main responsibilities include the following:
  1) Achieve and maintain price stability: Central banks are tasked with protecting the value of their currency. This is done by maintaining a modest level of inflation in the economy.
  2) Promoting financial system stability: Central banks subject commercial banks to a series of stress testing to reduce systemic risk in the financial sector.
  3) Fostering balanced and sustainable growth in an economy: In general, there are two main avenues in which a country can stimulate its economy. These are through Fiscal policy (government spending) or monetary policy (central bank intervention). When governments have exhausted their budgets, central banks are still able to initiate monetary policy in an attempt to stimulate the economy.
  4) Supervising and regulating financial institutions: Central banks are tasked with the duty of regulating and supervising commercial banks in the public interest.
  5) Minimize unemployment: Apart from price stability and sustainable growth, central banks may have an interest in minimising unemployment. This is one of the goals from the Federal Reserve.
  Central banks set the central bank interest rate, and all other interest rates that individuals experience on personal loans, home loans, credit cards etc, emanate from this base rate. The central bank interest rate is the interest rate that is charged to commercial banks looking to borrow money from the central bank on an overnight basis.
  This effect of central bank interest rates is depicted below with the commercial banks charging a higher rate to individuals than the rate they can secure with the central bank.
Commercial banks need to borrow funds from the central bank in order to comply with a modern form of banking called Fractional Reserve Banking. Banks accept deposits and make loans meaning they need to ensure that there is sufficient cash to service daily withdrawals, while lending the rest of depositors money to businesses and other investors that require cash. The bank generates revenue through this process by charging a higher interest rate on loans while paying lower rates to depositors.
  Central banks will define the specific percentage of all depositors funds (reserve) that banks are required to set aside, and should the bank fall short of this, it can borrow from the central bank at the overnight rate, which is based on the annual central bank interest rate.
  FX traders monitor central bank rates closely as they can have a significant impact on the forex market. Institutions and investors tend to follow yields (interest rates) and therefore, changes in these rates will result in traders channelling investment towards countries with higher interest rates.

NZD/USD Launches Higher on Stellar Q1 Jobs Report

Sentiment may have a chance to recovery Wednesday following a better-than-expected jobs report out of New Zealand. According to the Economic Calendar, New Zealand reported an employment change of 0.6% quarter-over-quarter versus an expected 0.3% for the three months ending March. The unemployment rate fell to 4.7% versus the 4.9% forecast. The better-than-expected print could further reduce the RBNZs dovishness on policy moving forward.To get more news about WikiFX, you can visit wikifx.com official website.
  New Zealand‘s job report was preceded by a financial stability report from the Reserve Bank of New Zealand (RBNZ), which stated the island nation’s economy has fared better than initially forecasted. Although the report did also note that vulnerabilities in the financial system persist. Elsewhere, The Australian Dollar received some positive news through an upgraded final services PMI print for April, rising to 58.8 from 55.5 in the preliminary reading.
  Asia-Pacific markets may still move lower following a gloomy Tuesday on Wall Street that saw technology stocks lead indexes lower. Asia-Pacific markets may get off to a rough start if the downbeat sentiment on Wall Street cascades into broader sentiment. The Nasdaq 100 index (NDX) sank nearly 2%, and the market’s fear gauge VIX index recorded a gain of about 6.4%. The selloff stemmed from US Treasury Secretary Janet Yellen's commentary, stating rates may have to rise to prevent the economy from overheating.
  The comments from the Treasury Chief are in direct conflict with recent Fed talk, but some believe she was referencing market interest rates and not the Federal Reserves benchmark rate used to spur or slow economic growth. Nonetheless, the market reaction shows just how sensitive investors are to any proposed rate increases.
  The US Dollar also took notice of Ms. Yellens comments, pushing the DXY higher. Risk-sensitive currencies were overly impacted, however, with the Australian Dollar and New Zealand Dollar both sinking near a full percentage point versus the Greenback. Treasury markets were not spared from the seemingly hawkish comments from the former Fed Chair, which pushed yields lower on the longer-dated side of the curve.
  Chinese stock markets will remain closed on Wednesday for the labor day holiday. While mainland Chinese markets will be closed, Hong Kong‘s Hang Seng Index (HSI) will be open for trade and perhaps looking to extend gains from Tuesday when the index recorded a 0.70% move higher. China will see some potentially hard-hitting economic data later this week as investors look toward trade data and PMIs from the world’s second-largest economy.
  The Kiwi Dollars move lower against the US Dollar has put NZD/USD in a defensive stance against its 20-day Simple Moving Average (SMA). The recently supportive 100-day SMA was also breached, but the currency pair recaptured the SMAs following the jobs report.
  The 61.8% Fibonacci retracement also appeared to deflect further downside and could step in as support again on the next move lower. That move lower may be on the cards, with MACD turning lower after crossing below its signal line, a bearish sign.

Gold Prices May Rise Despite Muddled Yellen Remarks and Here is Why

Gold prices rose slightly during Wednesday‘s APAC trading session after falling nearly 0.8% a day ago. US Treasury Secretary Janet Yellen clarified that she wasn’t trying to predict interest rate hikes to rein in inflation pressure following a hawkish-biased comment on Tuesday. Markets have perhaps over-reacted on her earlier words, underscoring the fragility of risk assets amid fears about tapering Fed stimulus. A stronger US Dollar index pulled gold prices lower on Tuesday before giving up some gains. This could provide a basis for gold to recover some lost ground and move higher.To get more news about WikiFX, you can visit wikifx.com official website.

  The recent rise in base metal, energy and agriculture prices has led to higher inflation expectations, which may boost the appeal of gold as a perceived inflation hedge. Signs of quickening price growth have pulled real yields (nominal yield – inflation) lower this week. The rate of the 10-year inflation-indexed security fell 6bps to -0.84% from -0.78% seen last Friday. Lower real yields may serve as a positive catalyst for gold prices, as the opportunity cost of holding the non-interest-bearing metal decreases.

  Although recent robust US economic data pointed to a stronger-than-expected recovery, the outlook remains clouded by a third viral wave that hit many other parts of the world. This could lead to weaker overseas demand, delays in economic reopening and supply chain disruptions. Against this backdrop, the Federal Reserve may continue to adopt accommodative monetary policy until its long-term inflation and employment targets are met. The central banks dovish stance is backed by Fed Chair Jerome Powell and President of the New York Fed John Williams, both of whom said it is still far to consider tightening.
Looking ahead, the US ADP private payrolls report will be closely eyed alongside several speeches from Fed official today. Thursday‘s BoE interest rate decision and Friday’s US nonfarm payrolls print will also be watched by gold traders for clues about inflation and the strength of the US Dollar. Higher-than-expected job creation may strengthen yields and the US Dollar, potentially weighing on precious metal prices. The reverse may be true if the numbers disappoint. Find out more from the DailyFX calendar.

  Technically, gold has likely entered an “Ascending Channel” as highlighted on the chart below. An upward channel is formed by consecutive higher highs and higher lows and can be easily recognizable as a trending market. The ceiling and the floor of the channel can be viewed as immediate resistance and support levels respectively.

  On the gold chart, the “Ascending Channel” is part of a larger “Double Bottom” pattern, which hints at further upside potential. A key resistance level can be found at US$ 1,800, breaking above which would likely intensify near-term buying pressure and carve a path for price to challenge US$ 1,818 – the 5

Man City officially unveil 2020/21 puma third kit

Man City officially unveil 2020/21 puma third kit

Manchester City have officially launched their puma third kit for the 2020/21 season.Get more news about Cheap Soccer Windbreaker,you can vist futbolucl!

Following on from the release of the new home and away kits City finally unveiled the strip they will be wearing during some away matches next season.City's new third kit has a white base with sky blue Paisley floral patterns on the front and sleeves, a tribute to Manchester's iconic music scene.

"The new Manchester City Third Kit celebrates the rich music and fashion culture of the city by creating a bespoke paisley pattern that features details of the club’s crest," the club website reads.

"The pattern is synonymous with artists from the ‘Mod’ and the ‘Brit Pop’ eras of the 1990’s and was a staple of youth fashion in the 1960’s, influencing fashion and music culture in Manchester for generations."To celebrate the new kit launch City have announced everyone who purchases the new shirt from the stadium CityStore will be able to chose between a free copy of Killing The Game , a book covering every detail of the last decade of the club, or a 125 anniversary Mish Mash poster.

The CityStore store will have extended opening hours between 9am-6pm on Thursday 27 August, Friday 28 and Saturday 29 to celebrate the launch of the new third kit.

Leaked Arsenal kits 2021/22

Leaked Arsenal kits 2021/22

Arsenal fans may already have a good idea of what their new shirts will look like ahead of the new season.Get more news about Replica Soccer Jersey,you can vist futbolucl!

The Gunners have had some interesting designs down the years, some good, some not so good, but whatever the case, there is no taming the excitement around the upcoming kits for the new season.There have been several leaks, and even one with the shirt in physical form, suggesting it might just be the one the Gunners players are wearing come next season.

It features white sleeves and white columns under the arm with navy Adidas stripes on the shoulder, as well as a navy trim on the collar.The latest leaked away shirt is an interesting take on the 1989 away shirt which featured the cannon as the logo.

This leak uses the same, but rather than being all-out yellow, it's a pale version of the colour, and the sleeves only have a navy trim rather than being all navy, as they were on the old design.

Nevertheless, with the yellow and the cannon logo, this throwback edition would score plenty of brownie points if it were to be released.Another throwback to an iconic kit, the third kit for the coming season, leaks suggest, could be based on the 1994 and 95 away kits, which were both blue.

Both were zig-zag in nature with one having two large zig-zags and the other having many throughout the shirt.By signing up for our Arsenal newsletter, you will receive a twice-daily email, focused on all the latest news from the Emirates Stadium.

And, not only that, but you will get exclusive content from our club writers Chris Wheatley and Kaya Kaynak before anyone else.

Best road bike wheels

Best road bike wheels

Of all your bike's components, upgrading to a set of the best road bike wheels is one of the easiest ways to greatly improve your bike's performance. A light and stiff (but not too stiff) wheel will make your bike feel like it’s gliding up a climb, help you effortlessly hold speed along the flats and also improve steering accuracy. High-quality hubs keep things spinning along for years with a bit of elbow (or waterproof) grease here and there and, most importantly, keep the elements out.To get more news about mountain rims, you can visit zpebicycle official website.

With more options than ever, between carbon or alloy rims at different depths, clincher, tubeless, and tubular tyre compatibility, disc or rim brakes, and quick release or thru-axle options, finding the right wheelset to buy isn’t always straightforward.

We've compiled a list of our favourite road wheels to help you find and buy the best road bike wheels for your budget.If you're looking for a wheelset that will offer versatility, then you could do much worse than the 303S wheels, which are compatible with tyres from 25-50mm wide. Tubeless tyre installation is a breeze thanks to the hookless rim design, although not all tyre brands are compatible, most notably Continental.

They weigh 115g less than their predecessor, and fall under Zipp's Total System Efficiency ethos for wider and lighter wheels. This results in a smoother, faster and more cultured ride for a great price. 

Harnessing the latest trend for wide tyre, low pressure, they're suitable for on-road and off, and as a bonus they come with a lifetime warranty.The Vision SC (which stands for Service Course) wheel range comes with both rim- and disc-brake options, as well as two rim depths to choose from. We tested all four, back to back, and were extremely impressed by the entire range, especially considering its affordable price point.

The disc wheelset is marginally heavier than the rim equivalent, however they still offer almost the same performance levels, aerodynamic qualities, and rim specifications.

The Vision SC 55s inherit the same rim shape and carbon fibre layup from the brand's superior Metron line, and perform just as well. Considering how much of an investment is needed to upgrade your wheelset, the trickle-down technology at this price point offers exceptional value for money.

What the Wheel Size

What the Wheel Size

There’s a bunch of things that you could accuse Santa Cruz of but being partisan about wheel size isn’t one. We’re open to all wheel sizes, which is why we offer bikes in nearly all travel and wheel size configurations. There’s an enormous overlap in our offerings – for example, do you want the Bronson with 27.5-inch wheels or the Hightower with 29-inch wheels, both bikes having nearly identical amounts of travel (the former has 150mm and the latter has 145mm)? To get more news about Road Cicycle Wheels, you can visit zpebicycle official website.

The reason for this is because we don’t believe in a universal, absolutist approach to bikes. We don’t think there’s one best travel figure, one ideal geometry set and the perfect wheel size. Instead we build bikes, a lot of different bikes and ebikes, so that an individual can find their match made in hero dirt heaven. Every rider is slightly different, from their physical attributes to the style of riding they prefer, so we make bikes with different characters to match different people. 

How does wheel size fit into this mythical decision making matrix? Well, every wheel size has its merits, it’s own characteristics, and depending on who you are and what you want to get from your riding there’s likely going to be a wheel size that most suits you. 27.5 is the most versatile of wheels. It’s great for all disciplines, except maybe XC racing where you want the most efficient wheel for transferring watts to forward trajectory. It’s also suitable for riders of all sizes, but especially if you’re on the shorter side then this wheel size might give you some more real estate to play with (extra butt clearance when negotiating steep trails or for bikes with a lot of travel). 

27.5 has been around for a very long-time, but only really found its footing in mainstream mountain bike setups around 2013 when it eclipsed 26-inch as the ‘standard’ mountain bike wheel size. Before that, the choice had been the smallest of wheels (26-inch) and the largest (29-inch) but 27.5 was seen as the Goldilocks option because it decreased the roll-over resistance (something 29-inch wheelers were celebrating) but kept the nippy, lithe handling characteristics of the smaller wheels. 

In terms of ride characteristics, it’s best for riders who enjoy the most agile wheel configuration possible, those riders who seek out the playful lines on the trails, who like getting airborne and who are looking for the most responsive, quick handling kind of bike. 

So if you’re looking for a wheel size that is easy to get to grips with, if your trails are very tight, if you like to pop and play or if you’re on the short side then 27.5 might very well be the one.

Best mountain bike wheels in 2021

Best mountain bike wheels in 2021

The best mountain bike wheels can take more of a hammering than ever. This partly explains the bias towards durability, strength and downhill aptitude in many new wheels; factors that have slightly overshadowed traditional concerns of saving weight and maximum efficiency at all costs.To get more news about road bicycle rims, you can visit zpebicycle official website.

This attitude of reliability trumping every shiny new parts weight is a bit of a theme in recent MTB ‘fashion’ overall. Nobody wants to ruin a great ride with a mechanical, so we largely subscribe to the idea here at mbr too, but also reckon wheels are actually one area where you can have your cake and eat it too.

After-market wheels can massively improve rolling speed, handling, and acceleration. They can also benefit grip, tracking and comfort, which helps you rider faster and safer in the toughest terrain. On top of this, and flying in the face of this new-school attitude for robustness, the best wheels can also achieve these significant performance gains with zero trade offs in terms of reliability and lifespan if you choose wisely. With wheelsets better than ever, the choices are plentiful, and nowadays you only need to spend top dollar for ultimate (rather than good) performance too.
You will notice that beneath each product summary is a ‘View Deals’ link. If you click on one of these links then mbr may receive a small amount of money from the retailer should you go to purchase the product from them. Don’t worry, this does not affect the amount you pay.

Hunt’s alloy wheel package is an absolute bargain with a well thought out spec list, proven hubs and a performance you’ll struggle to match for that much money. Ultimately, it’s hard to argue with a lightweight, fast and tough Hunt wheelset for under £350 when it rides this well.

While most wheels this weight can feel like too much to drag around on an enduro bike, that’s not the case here, making them impressive all-rounders and recommended for heavier or demanding riders after a really tough set of aluminium wheels for DH or enduro racing.

Heat Not Burn: Omura is the Cleanest New Way to Get High

Heat Not Burn: Omura is the Cleanest New Way to Get High

There hasn’t been a major earthquake in Los Angeles for over 25 years, and while the legalization of recreational marijuana last January shook things up, no one was hurt in the proceedings. Nonetheless, it’s almost impossible to walk down the street in West Hollywood without seeing the C-word (cannabis). Oil-based vape pens are everywhere, but do they really deliver quality?To get more news about Hitaste P8, you can visit hitaste.net official website.

This week, the highly anticipated new whole flower vaporizer brand, Omura, launched a game-changing product. The rechargeable metal device comes in 4 colors and is a guaranteed conversation-starter. Their proprietary “heat-not-burn” technology finally brings the whole flower ritual to vaping newness. The device requires Omura’s paper-straw-shaped flower cartridges. Once the biodegradable cartridge is introduced to the device, the heat begins. The dose-controlled inserts last 3-minutes and feel impossibly elegant for getting high. While it sounds high tech as far as the weed market is concerned, it’s surprisingly simple, effective, and is incomparably more sophisticated than crouching near an open window with a lighter and glass bowl.

The whole flower cartridges come in multiple strains like Sativa, Indica, and CBD. Omura promises to deliver cannabis in its cleanest form through heat technology, without the concessions of oil vaping or smoking, and it certainly brings a new heft to the notion of high luxury.

The World of Warcraft Burning Crusade Classic release date

The World of Warcraft Burning Crusade Classic release date 

On June 1, return to Outland in World of Warcraft: Burning Crusade Classic,” read an advert (pictured below) briefly featured on the Battle.net launcher.To get more news about safe wow classic gold, you can visit lootwowgold official website.

According to Wowhead, the advert disappeared upon changing tabs or scrolling news, suggesting it wasn’t ready for public viewing.

If accurate, it is unclear if June 1 refers to a pre-patch or an official start date for Burning Crusade Classic, though it is also possible the advert was merely a pre-prepared piece of content with a filler date.

It also wouldn’t be s surprise if a Burning Crusade Classic release date is officially announced later on Tuesday, when Activision Blizzard is scheduled to report its first quarter financial results.Announced at BlizzCon online in February, the recreation of World of Warcraft’s first expansion will see players “return to Outland as it once was to relive an era of timeless adventure—or experience what awaits beyond the Dark Portal for the first time”.

Originally released in January 2007, “Burning Crusade summoned the heroes of Azeroth to the shattered and fel-scarred realm of Outland to stop an invasion of the demonic Burning Legion”.

As with World of Warcraft Classic, Burning Crusade Classic will be included with existing WoW subscriptions.

WoW Classic players will be able to choose whether to advance their characters to the Burning Crusade era with the rest of their realm or continue playing WoW Classic on new Classic Era servers.

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