Company News by ForexMart

Brazil’s Central Bank Modification of Reserve Requirements

The Central Bank of Brazil plans to revise its reserve mandatory policies aiming to raise the volume of money flow in the economy. In due course, this could lessen the cost of credit for consumers and generate excess resources in the bank and improve the regulation of the monetary policy.

Last month, the Mexican Central bank Governor Ilan Goldfajn publicized their goal to cut its medium-term to long-term credit costs for both companies and consumers to boost the economy facing recession. The banks intends to integrate the demand policies for savings and time deposits involving the differences between borrowing rates of banks in loans and funds.

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Bank of Japan Done Adding Stimuli Under Kuroda—Economists

Economists are stating that Bank of Japan is already done with adding economic stimulus to the Japanese economy under the term of BoJ Governor Haruhiko Kuroda. In addition, economists are also stating that there is a small chance of any adjustments made during the central bank’s policy meeting which is set to end this coming January 31. This is partly due to economic situations overseas becoming more complicated by the minute, especially with the newly-minted Trump administration as well as the hard Brexit process from the UK. The stirring of economic issues abroad has prompted the Bank of Japan to maintain its current policies and wait for these to unravel before finally making a move.

Slow Economic Growth for South Korea in Fourth Quarter

The Bank of Korea confirmed on Wednesday the economic growth of the sovereign state fell back during the fourth quarter of the previous year. Further sharp decline took place in the construction spending and personal consumption expenditure as the political upheaval intensifies.

The period got affected by the illegal involvement of President Park Geun-hye regarding the corruption scandal. Park got impeached by parliament of South Korea, pronouncing their judgment in a court proceeding. This political instability triggered fears for the probable “policy paralysis” and caused for the Consumer Confidence Index to slump for the third time up to this month.

The growth is approximately 0.4 percent based on Seasonally Adjusted Annual Rate (SAAR), quite from the 0.6 percent result in September and 0.8 percent surge for the month of June.
While the construction investment grew less with a seasonally adjusted 1.7 percent from October to December. On the other hand, the private consumption gained 0.2 percent only and remained lesser by 0.5 percent during the September quarter. Moreover, the annual GDP rate increased by 2.3 percent in the last quarter but comparatively lower from 2.6 percent hike in third quarter.

Attachment 25380

Singapore Manufacturing Data Rallied on Strong Exports Demand

The industrial production of Singapore rose at the quickest rate over five years in December driven by strong demand for electronics export reported by the Electronic Development Board. The Manufacturing data rose 21.3 percent in December 2016 while the output climbed to 6.4%. Even though the country encountered an increase in jobless rate reaching a six-year high in the past quarter, the results exceeded the forecast for two consecutive months from November.

Growth in the export-reliant city-state is starting to gain momentum when the country tried to prevent the recession last year since the economy recovered after the decline in the third quarter. The preliminary data of the Gross Domestic Product also rose at the fastest rate over three years in the fourth quarter.

Trump Signed Exec Order for Controversial Pipelines

Environmentalists have predicted about the much-protected issue but only few of them presumed it would instantly take place. As US President Donald Trump signed an executive order giving a go-ahead signal for the completion of the controversial Keystone XL and Dakota Access pipeline. Based on reports, these infrastructure programs allow an easier shipping of fossil fuels towards North America.

This re-authorization order is included in the promise of Trump during his campaign which is about the lessening of internal procedures in blocking the pipelines.Moreover, the 70-year old politician was lambasted by climate activists together with Native Americans after he approved the memorandum for the pipeline projects.

The pipeline revival is the initial opposing move of current American leader against ex-President Obama’s environmental policies. As Obama’s presidency did not pursue this plan due to some environmental-related concerns.

Attachment 25381

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Attachment 25421

USD Drops, Asia Stocks Slump after Trump’s Immigration Ban Causes Unrest

The US dollar inched lower and asian stocks declined after the market suffered repercussions brought about by President Trump’s various implementing policies, including an immigration which has sparked outrage from a number of the world’s most influential leaders as well as some tech giants. Meanwhile, bonds rose in value along with gold prices. The US dollar traded within its lowest levels in over two months and has weakened significantly against all other major currencies. Oil prices also decreased in value for the second consecutive day this week.

Positive Outlook on Japan’s Economic Growth Forecast Caused BOJ to Maintain its Policy

The Bank of Japan adjusted higher its economic forecast on Tuesday. However, the monetary policy remained the same which is already anticipated. The GDP forecast for the year increased by 14% from 1.0% in October for this fiscal year. Its economic forecast was raised by 1.5% from 1.3% for this year and 1.1 percent from 0.9% in the following fiscal year. Alongside, the inflation of 2% is anticipated to increase as well for the fiscal year in 2018 since the medium to long-term inflation expectations has a positive outlook and halts is recent decline.


The Labor market is also doing well with rates tightening and the downtrend of the commodity prices is pushed higher by the increase in demand for International commodity prices. The currency yield-curve policy control approved on later September meeting of the central bank is expected to maintain its current stand despite the uncertainty brought by the new U.S. administration as one of their top trading trading partner.

The current Money Fall contest has already started on February 6, 2017 and will end on February 10, 2017.

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USD Falls for Sixth Consecutive Week as NFP Data Disappoints

The US dollar fell for the sixth consecutive week and has recorded its lowest drop since July 2016 after the NFP report disappointed a lot of market players as the supposed effects of a highly positive hiring data was offset by the lack of wage-induced pressures. This was also further propelled by various uncertainties surrounding Trump’s policies regarding the USD, as well as his newly-imposed sanctions on Iran. The results of the NFP report were also not enough to compensate for the uncertainties brought about by the Fed’s refusal to give out hints on its next steps regarding the impending interest rate hike.

Attachment 25553

Worst-Performing Economy in the Eurozone - Italy

According to an analysis conducted in the euro zone, the economy of Italy has the worst condition among European Union countries after 18 years while the leading country is Germany. The besieged Italian republic was witnessed to be the only nation within the region to have an economic decline equal to its population size during the year, 1998.

The state’s Gross Domestic Product is down to 0.4 percent within that period which performed worse than Greece as stated in the EU data from Bloomberg. Moreover, the current GDP of Italy grew by 6.2 percent, however, the number of all individuals is greater by 6.6 percent.

According to a Milan-based economist from UniCredit Bank AG, Loredana Federico, said in an interview that the country’s economy had a slow growth versus other nations. She also mentioned that it will tough for Italy to close the gap compared with other economic systems.

Asian Stocks Drop After JPY Haven Demand Surge

Asian equities experienced a decline following a JPY rally after the demand for the safe haven currency increased following various concerns surrounding political events worldwide. The Japanese Topix index decreased after a three-day high as the JPY recorded its highest value since November 2016 last Monday. This recent rally in equities caused by Trump’s policies have started to weaken as most investors are now worried with how the Trump administration plans to balance out its proposed tax cuts and added spending with its protectionist stance on international trade. Adding to risk are some EU countries where anti-establishment organizations are now gaining fuel prior to their respective national elections.

Attachment 25559

Indonesia Economy Rose to 5.02%

The Gross Domestic Product of Indonesia beefed up by 5.02 percent in 2016 versus 4.88 percent in 2015 based on the report of Central Statistics Agency (BPS) released on Monday. However, the Austronesian nation declined during the Q4 with a year-over-year decrease in GDP by 4.94 percent with the previous 5.02 percent in Q3.

The chief of BPS, Suhariyanto mentioned the government expenditure also dropped to 4.05 percent during the fourth quarter of 2016 followed by a budget curtailment which causes for a slower annual percentage compared with the same quarter in 2015 with an increase of 7.12 percent.

The adjusted public spending regarded as being caused by austerity measures led by the administration of Joko “Jokowi” Widodo with an estimated Rp 137 trillion (US$10.27 billion) trimmed budget.

Furthermore, the figures for imports and exports grew slower with 1.74 percent only while 2.27 percent in 2016 accordingly. Investments mounted to 4.48 percent in the previous year.

The household consumption of Indonesia is considered the largest factor for the country’s GDP reaching 56 percent within the total percentage, the increase is approximately 5.01 percent.

Positive Reports Indicating Italy's Economic Recovery

Italy’s economy is performing well as it grew for the past three months signaling a stabilizing growth pace of the economy as statistics shown. Despite the uncertainty in the first half last year, the country was able to recover supported by the monthly report short-term economic forecasts by the national statistics agency ISTAT.

Results were further supported by the improving manufacturing sector, household purchasing power and higher investment. However, the consumer confidence index declines due to the current weak economic condition. On a brighter side, the business confidence has significantly advanced. This was greatly influenced by the manufacturing sector increased by 0.7% In November. Other sectors such as the foreign trade and and Household Consumption climbed by 2.2% and 0.3% respectively in the third quarter last year.

This remarkable results coincides with the expectations of the government and optimistic that this will lessen the fiscal adjustment needed from the European Union.

Attachment 25561

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Finance Minister Counters the Accusation Against ECB

The European Central has been accused of altering the Euro exchange rate and this is being negated by the French Finance Minister Michel Sapin. They are believed to have a goal in completing trading and attain the competitive policy goals by a significant U.S. authority saying that Germany gains an advantage over grossly undervalued Euro for personal gains.

Europe should still work harder to achieve former status prior to global financial crisis according to Sapin. Germany has to be more committed to restore into a better condition regarding its investments. At the same time, they are hopeful that the new president of the United States will recognize the significance of the European Union relationship with the United States.

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Inflation in China Open Possibilities for Tighter Policies

Producer price inflation in China has reached figures higher than expected bringing the price close to six-year highs as price of steel and other raw materials surged while Consumer inflation climbed to a three-year high as fuel and food prices rallied on data released on Tuesday. Both prices producer and consumer are expected to reach 6.3 percent and 2.4 percent, respectively for this year.

Some analysts see this price inflation as a short-term rally with rally in the possibility for food prices to be seasonal. Moreover, the increase in price pressure in China has induced speculations of tighter monetary policy this year to boost economic growth and mainly because of credit risks concerns including leverage in the market.

Attachment 25654

The current Money Fall contest has already started on February 20, 2017 and will end on February 24, 2017.
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Thai Economy Records Slowest Annual Growth as Consumption Wanes

Thailand’s economy recorded its slowest growth rate in over a year during the previous quarter as the country’s private consumption waned. Thailand’s GDP data showed an expansion by 3% during the past quarter, its slowest annual recorded move. Thailand’s economy surged by 3.2% in 2016 as compared to 2.5% two years ago. This slow GDP growth was mainly attributed to the death of the Thai king followed by a major crackdown on illegitimate Chinese tourists, which also caused the country’s private consumption to drop. However, the Thai baht was among the best-performing currencies in Asia after it grew by over 2% against the USD.

Attachment 25716

Greece Fears Economic Collapse Amid Debt Crisis

Greek people have withdrawn money from their accounts which exceed to £2billion as they fear the news regarding economic crash which will take place within 45 days. The Hellenic republic was alarmed about the possible scarcity of money in a period of five months because the country is affronted with repayments with an estimate of more than £5.1bn (€6bn), thus the country is unable to pay the total amount without any aid or restructuring.

Greece citizens were forbidden to take more than £1,540 (€1,800) every month from their accounts, however, the currency had continuously depleted at a very fast rate. There are speculations that the Government will fail to pay for the next settlement due in July.

Individuals which involves tourists were strained to wait in line in order to obtain cash from their respective banking machines.

Attachment 25717

UK Policymakers Clamor for more Transparency in Offshore Territories

Policymakers in the UK are pressuring UK PM Theresa May to increase transparency with regards to the business guidelines for offshore territories, including the British Virgin Islands. A total of 80 Parliament members are clamoring for amendments to the Criminal Finances Bill which is slated to be returned to the House of Commons next week. According to these Parliament members, the lack of transparency with regards to the business dealings within offshore territories such as Cayman Islands and Bermuda might be used by criminals as an advantage to hide ill-gotten assets as well as curb tax policies.

Brazil Eased Inflation Rate Less than 5 percent in February

Brazil lowered its inflation rate less than 5 percent halfway February for the first time since 2012. This was done to recuperate the economy after its two-year-long recession. The inflation target of Central bank comes in at 4.5 percent and they are open for further price easing. This would also be a big help for President Michel Temer who is seeking support in Congress.

On one side, the consumer prices slowed down quicker than expected which could force the authorities to ease their target for 2019. The reports will be publicized on Wednesday morning (1200 GMT) and at the same time, the central bank is anticipated to curtail its rates by 75 basis points from a two-year low of 12.25 percent.

Attachment 25722

The current Money Fall contest has already started on February 27, 2017 and will end on March 3, 2017.

You can register for the next competition which will take place from March 6, 2017 to March 10, 2017

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Expected Shift in Crude Futures as Much as $2B Will Put an End to Oil Glut

In the upcoming week, the passive investment funds are expected to rise to $2 billion from long-term to short-term crude futures, while the energy market surges after OPEC output reduced its supply. This is expected to put an end to global oil glut accumulated over two years of price war. Excessive oil supply in international inventories drove the prices to multiple year lows.

The Brent contract LCOK7 price established at $56.31 a barrel on May, while the LCOM7 price settled at $56.55 a barrel in June.On the other hand, the limit for the West Texas Intermediate crude remains the same. The gap between the first month and the subsequent month on Brent contracts LCOc1-LCOc2 has tightened from 79 cents down to 5 cents. However, both June and December contracts LCOM7-Z7 traded closely on Friday.

Attachment 25807

Consumer Confidence of the Eurozone Plummeted

The consumer confidence of UK for this month declined while the British currency weakened. The prices rose and wage growth dwindled which influenced the Britain’s economic powerhouse.

The monthly household sentiment of GfK had a dipped and stayed below zero for the 10th month. The level for major purchases also decreased which implied that British citizens probably controlled their expenditures.

Another assessment by YouGov coupled with the Centre for Economics and Business Research is the job security index which further decline reaching its lowest result three years ago.

After the Brexit referendum, the private consumption as well as the services industry have compelled the economy, however, it set out some signs of economic strain. During the EU exit, the inflation increased as the energy cost climb higher together with the 16 percent cut in the sterling pound.

Furthermore, the growth of credit had a steep decline in December whilst retail sales inched up at its slowest pace since January 2014.

Attachment 25832

Investors Shift Focus from Trump Statement to Fed Movements

Investors are now shifting their focus from Donald Trump’s Congress address to the timing of the Federal Reserve’s interest rate hike in spite of Trump’s speech lacking significant details. This has been a cause of relief for Japanese investors, since a shift in the market focus would offer some sort of buffer for the Japanese yen, whose value seems to be consistently weakening during the past trading sessions. The JPY increased its losses for the third consecutive day, while Japanese equities posted rallies during the past session.

The current Money Fall contest has already started on March 6, 2017 and will end on March 10, 2017.

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Attachment 25931

Philip Hammond to Allocate $676 Million to Boost UK Tech

UK Chancellor Philip Hammond has announced that he will be utilizing Wednesday’s budget to offer more than 550 million pounds or over $676 million sourced from the National Productivity Fund in order to improve the country’s technology and innovation sector. The said funds will be directed to developments in robotics, artificial intelligence, and even electric vehicles, according to a statement released by the Treasury. In addition, Hammond also plans to improve 5G mobile network coverages in UK by way of this particular funding.

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Winners of the Chance Bonus offer will be chosen via random electronic draws. The $1000 is automatically credited every Monday to one of the eligible accounts which met the conditions of the raffle during the previous week. The Chance Bonus offer can also be mixed with other types of ForexMart bonuses. Clients can also opt to cancel their Chance Bonus eligibility by sending us a notification e-mail at support@forexmart.com.

Attachment 25932

Australia's Interest Rate Remained on Hold

Australia kept its interest rates steady on Tuesday, March 7, because the property prices of Sydney continued to increase its risk which exceeded a much-lowered inflation rate.

The Governor of Reserve Bank of Australia Philip Lowe concluded together with his board to remain the cash rate at 1.5 percent after a positive growth and optimistic performance in trading for the last three months of 2016. According to the poll led by Bloomberg, the decision were already projected by all 29 economists.

Moreover, the housing demand in Sydney remained stable since buyers settled a property in the city which further ratcheted up debt records.

The central bank decided to maintain its policy despite an extremely high house prices which partially stirred by the increasing population size coupled with the absence of family dwellings constructions.

Furthermore, the country’s economy rose by 1.1 percent in Q4 versus the past three months and the 2.4 percent gained from a year ago.

Launching of Czech Version of ForexMart

ForexMart team have upgraded the website by adding a Czech version using the country’s native language. We are glad to introduce the newest Czech translation on (Date), which could help Czech and Slovakian citizens to easily interpret and find important information about the company’s special offers, partnerships and pool of trading instruments.

Clients could simply select the Czech language (or any other required language) by clicking the Czech flag on the language selector found in the upper right of the site.

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Canada’s Economy Lead Over other G7 Countries

The Canadian economy is expected to gain 2.4% this year with equal expectations as of the United States and in the lead of other countries included in the Group of 7. The estimates were based from the Organisation for Economic Co-operation and Development
(OECD) release.

The international organization formerly mentioned about Canada’s possible economic improvement by 2.1 in 2017, which came in better and still appeared to be modest compared with the previous years of recoveries from economic decline.

The Paris-based institution hike up its projections for the selected biggest economies in the world which further includes USA and China, however, its evaluation for the world economy kept steady at 3.3% versus 3% in 2016.

Furthermore, the report mentioned that the US and Canada would likely outstrip other seven major economies which involve Germany as the next highest among the G7 with 1.8% growth in GDP.

For 2018, it is expected that the U.S. economy will earn 2.8% and 2.2% growth for Canada. Moreover, the forecast for the global economic growth is said to be 3.6%.

The current Money Fall contest has already started on March 13, 2017 and will end on March 17, 2017.

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Iceland's Jóhannesson Urges to Cut Interest Rates

Benedikt Jóhannesson, minister of finance in Iceland, have affirmed that the nation’s central bank had to slash interest rates another time in order to ease the pressure weighed on Icelandic krona (ISK) together with the removal of capital controls.

Jóhannesson also mentioned that he does not have any “influence” regarding this decision as the government have taken these actions to lessen the pressure against the economy, as well as to prevent overheating, to the extent of rising of budget surplus.

On one side, the administration hopes that the steps to cool down pressure on krona will be sufficient to realize more foreign investments for the pension funds. The ISK increased by 17 percent versus the European currency on the previous year, it was able to climb higher due to burgeoning record of tourist inflow. On Monday, krona plummeted by 3 percent while bond yields rack up. The recovery of the currency was recorded on Tuesday in the capital city of Reykjavik with an increase of 0.6 percent.

The financial and legislative precautions were implemented as no one can say when will the country would experience the crisis again.

Attachment 26027

Puerto Rico G.O. Bonds Dropped to its Lowest in 2 Months

Puerto Rico’s General obligation (GO) bonds dropped after the financial recovery plan has been approved which is comprised less than a quarter of total unpaid debts. The revised proposal was granted by Governor Ricardo Rossello on Monday aiming to cut the chronic budget deficits.

Securities due 18 years from now which is the most traded has declined by 5 percent with an average of 67.5 cents on Tuesday, its lowest price in two months while those bonds due after 22 years fell to 60.2 cents from 63.8 cents on Monday.

This plan will mark as the benchmark as they talk through on minimizing its debts. Although the outcome is negative, the authorities are still sanguine with the end result. The governor commented that the as of now, the country has chances to deal with various bondholders at different levels and they are still in the process of evaluating the best most suited solutions in consideration of bondholders and the people of Puerto Rico.

Peruvian Economy Beef Up Reaching 4.81% Growth

In January 2017, the economy of Peru rose up to 4.81% which indicates the progressive the country’s growth for 90 months. The surge was supported by the excellent performance from the primary sectors, particularly fisheries and mining based from the National Institute of Statistics and Informatics (INEI) report released on Wednesday.

Head of INEI, Anibal Sanchez have said that the GDP of Peru gained 4% for the past 12 months from the months of February 2016 until January 2017.

During the first month of the year, the hydrocarbons and mining industry grew by 14.75%, at the same time the fishing activity boosted by 42.17%.

The economic development exceeded analysts estimates of 4.5% based on the Reuters poll. The upbeat figures were underpinned by the growth in foreign demand which proves 8.09% increased for total exports.

Attachment 26030

Germany and Japan Promotes Free Trade Deal

German Chancellor Angela Merkel and Japan’s Prime Minister Shinzo Abe discussed free trade between countries on Sunday’s major technology fair. Both representatives would like to aim for a faster pace regarding this matter and wanted to have an agreement in this year while G20 finance ministers and central banks commented an open trade during their two-day conference in Germany. The issue of Protectionism was avoided by both leaders in the beginning of the CeBIT technology fair, implying that people are currently more open with regards to free trade and open borders with giving importance to democratic values.

The current Money Fall contest has already started on March 20, 2017 and will end on March 24, 2017.

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Attachment 26087

Denmark Repayment of Debt After 183 Years

The Scandinavian country, Denmark is scheduled to pay off its latest foreign currency loans with an amount of $1.5bn at the present moment. Freeing the nation from any debt obligations regarding FX which will happen for the first time in 183 years.

Based on the records of the Danish central bank, the government almost paid the loan back in the year 1894, that was the time when the total of FX debt was lower than 1 percent of the GDP.

Denmark had its first foreign debt during 1757 with a half a million worth of rigsdaler issued by Netherlands and Germany. Moreover, the external debt owed by the country expanded in order to finance 19th-century wars. Despite the repayment, the sovereign state is not fully clear from debt, except for all krone-denominated concerns.

The debt-to-GDP ratio of the state as a whole is considered one of the least among the list of major economies in the European region, accumulated 38 percent and projected to drop about 36 percent for next year announced by the European Commission.

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