It`s been only one week since we`ve last spoken with you for the Forex movements you need to consider. Well, today, we are back to inform you about all the latest and hottest financial news again – 17th – 23rd August 2015 pack of Forex changes and interesting facts to know is here. So, let`s get focused and see this quick review of the news to have in mind during the upcoming trading week.
Cheaper Resources Mean Bigger Profitableness for Obligations
The trend has been spread across the web by many experts. They are sure that the lower prices of the resources, which we have been observing for the last few months, will lead to better profitableness for the obligations. Also, the investors usually look for an average profitableness of about 7.39% from companies with the so-called rating “junk”. The expenses for the loans of the bigger companies have been increased till their upper rates for the last three years and the crediting in energy companies has become a bit more risky than usual. Here, all of the main resources are involved in this statistics and to be more specific 22 of the most common resources are included in the research – such as metal, petrol and wheaten.
Chinese National Currency Might Get Quite Cheap During the Next Few Years
According to a report made by Barclays the Chinese national currency – Yuan – will become lower than ever and this will hit the biggest Asian economy in three years only. The experts in the field believe that the value of the Chinese Yuan will become with about 8% cheaper and the National Chinese Bank is now heading for a brand new policy to cover this quite possible tendency and prognosis. Meanwhile, British Central Bank has some concerns as to the influence from the lower Yuan price. English financial specialists think that such a value of the Chinese national currency will make the rest of the most common global currencies to get affected, as well. According to Barclays the most enormous affect will be seen in the rest of the biggest Asian currencies such as the one in Taiwan, Korea and Malaysia.
Central Bank in Peru With Desperate Attempts to Stop The Decrease of National Currency Value
The recent process in monetary policy in Peru is fully concentrated on the overcoming of the fast and sudden reduction of the price of national currency. The Central Bank in the country considers even drastic measures, because the process seems to be quite fast and promising to continue during the next few months, as well. Such a low value of the national currency in Peru hasn`t been seen since 2006 year and the Bank will double the mandatory reserves on its operations quite soon. Still, such an action might not be enough to stop the reduction of Peru`s national currency price.
Colombian Central Bank Preserves Its Current Main Interest Rate
Even though there were some speculations over the decision by Colombian Central Bank as to the main interest rate, it will remain the same. The official statement from the financial experts in the Bank was clear: the main interest rate in Columbia will remain in its current value – 4.5%. It seems that the bankers in Columbia decided not to change anytyhing in their monetary policy and due to the worsening of the perspectives as to the economy growth and despite the high rate of the national inflation. Only 4 of the main members from Colombian Central Bank, in whose hands the final decision was, claimed that an increase of the main interest rate is a must!
Mexico Becomes The Next Victim of Petrol
The economy growth in Mexico has signed a delay of about 2.2% at an annual base and this is a trend that will, unfortunately, not be overcome. The fact that Mexico becomes the next victim of the petrol crisis is evidence for even worse situation for the national progress in manufacturing and industry. According to most of local experts Mexico will again finish the year with failure as to its initial plans included in the programs from the beginning of 2015 year. But besides petrol, the upcoming increase of the main interest rate in USA will also influence on the bad performance of the Mexican economy. It seems that nothing can get Mexico out of the collapse and this is not bad luck, but a process that will deepen even more during the next months… or years!
Ok, guys, these were all the latest Forex news we have thought would be interesting and useful for you. Do not miss the next portion of the hottest financial news next week! See you soon, traders!