It has been a dinamic several weeks in in this summer, next are pointed the main directions that will rule the markets in the next several weeks period.
USA economy rise up with 4% for the second quarter
After the heavy hit in the first quarter of the year, USA is catching up in the second quarter with positive signals of growing economic powers. The GDP increase of 4% is above the expectations of 3% from the main experts around the globe, with this result it seems USA is trying to catch up on the Europe’s growing markets. This increase of the GDP is directly connected to the increase of the labor market in USA which grew to 231 000 compared to the 185 000 for the first quarter. The better situated labor market stimulates the money spend of the USA households which grew 1.2%.
EU banks lower their loans requirements
For first time in the past 6 years the EU banks lowered their high standarts for the companies showed a report from the European central bank. That result came after the European central bank pointed out this as the main factor of the slow growth of European economy growth. On that said the loans for the regular citizens and households are also getting a bit of a break with lower requirement in that sector as well.
The EU central banks will keep its effort of trying to stimulate Europe to regain their money power. WIth low interest loans to major banks they hope to stimulate the investments in Europe.
US dollar, euro, yen – where they stand now
The odds of the dollar gaining power over the euro are increasing on the background of the Ukraine crisis and the Malay plane that crashed there, the war in Israel, the bank situation in Portugal and the new sanctions over Russia. That combined with the positive news of the USA GDP are a clear sign that investing in dollars in your forex trading actions would be the smartest thing to do now. With same factors is benefiting the Japan yen which climbing the charts vs the euro for the past few days with no sign of stopping the trend in the near future. The huge sales on the USA stock markets also helped the yen to gain power the USA dollar as well. Be careful though the yen is not so attractive as we all know the Japan bank is trying to regulate lower levels of the yen in attempt to stimulate Japan’s production.
FITCH agency lowers the credit rating of 13 russian banks
Following the civil war in Ukraine supported by Russia, and the new sanctions from USA and EU vs Russia, the agency lowered the main rating of almost all Russian top banks. This comes after the lowered rating of the Russian Federation in 25th of july. The banks that took the hit are:
Raiffeisenbank, Citibank, China Bank, Nordea Bank, Danske Bank, ING Bank, Seb Bank, HSBC, Credit Agricole, China Construction Bank, Rusfinance Bank, Delta Kredit and Rossbank.
I hope that the above news will help you for your forex trading strategies and make you able to profit good in the next week.