ForexMart Launches Web Terminal for Traders

We have launched a trading web terminal which will be available to all ForexMart clients.

This is an online-based trading platform which will enable clients and partners to keep track and supervise their trades at any given period of time without the necessity of downloading the MT4 trading software from the site. The web terminal also has a user-friendly interface which can be customized by partners and clients in accordance to their preferences.

The launching of this web terminal is part of our continuous efforts to further improve our services and to consistently provide a better trading experience for both our clients and partners, as well as to create more opportunities for traders.

The web terminal can be used for both old and new ForexMart trading accounts. For further information or any inquiries regarding this new feature from ForexMart, you can visit www.forexmart.com or you can contact our customer service at support@forexmart.com

GBP/USD Fundamental Analysis: February 19, 2018

The single European currency and the British pound shared the same fate on Friday, as it showed high volatility during the first half of the day due to the weakening of the US dollar. While in the afternoon, the strength of the American currency prevailed which helped regain the profits of the sterling of the past few days. It further helped the GBP/USD pair to end the weak in a sluggish approach which indicates correction in the following days.

The pound was secured because of the dollar instability and pushed the Cable pair to reach the 1.38 zone until the psychologically important level of 1.40. Briefly, the pair moved away from any danger for good and the pound bulls attempt to stabilize the momentum in continuing the upward movement in the near term.

As the decline of the dollar does not have enough economic data or fundamentals to support it, the rebound in the US currency did the same. This resulted in the downturn of the pound, pushing through the 1.41 mark and traded underneath the 1.40 area for a short period of time. Subsequently, the pair successfully closed the week above the 1.40 level. As of this writing, the Cable pair continued trading on top of that region and the price level is expected to remain on that point, relative to the bulls and bears. In case the pair remained steady above 1.40, the bulls will take control which would likely to be seen in the coming weeks.

Ultimately, there is no major news from the United Kingdom while there is a bank holiday in the United States today. It is safe to say that consolidation and ranging are possible while market players anticipate for bigger investors to show up its intentions and start to move in a certain trend in order to tag along. It is believed that the USD will gain strength in the medium term.

France Faces Structural Unemployment Issues

The jobless rate in France had decline generally, but there are no immediate solutions for skill shortages. French unemployment lowered down by double figures during the third quarter last year and resumed to drop until the fourth quarter. According to Bloomberg, the country’s unemployment rate in December 2017 was 8.9 percent while the fastest acceleration in employment creation since 1996. On the other hand, unemployment in 2017 plunge to 1.9 percent which is a major downturn in a decade.

Meanwhile, President Emmanuel Macron promised to lessen the unemployment by 7 percent in the year 2022. Structural unemployment is also one of the largest shortcomings during the Hollande administration in which Macron performed as the Minister of the Economy.

Nevertheless, France is also known for its issue regarding the country’s increasing skills gap. As mentioned by the Financial Times, there are about two million French workers with less qualification which became the underlying factor for structural unemployment. According to estimates, the job market of France was unable to appease the demand of 200,000- to-330,000 posts due to failure finding the appropriate candidate.

Moreover, the current administration plans to have a €15bn investment programme to improve employability skills especially for the below average job seekers and long-term unemployed. In case of the approval of the project, it will take two-to-three years to take effect.

More Pressure Besets Chinese Local Government with New Bond Rules

Local governments of Beijing were pressured to settle their financial problems while a new rule on are issued on lending companies.

Chinese firms have to confirm publicly that funds gained in selling bonds should not add to local government debt and they are not siding on any government financing sector based on the given notice from the country’s top planning agency.

Moreover, corporations should not demand or accept any assurance from local governments on debt financing, as stated by the National Development and Reform Commission (NDRC).

Regulators are looking for means to have a better control in the midst of a wider systemic risk on the high local government debt and their transparent financing.

Authorities are trying to separate financial actions as part of their restriction, which is often related to stand-alone companies in a technical perspective. In particular, credit rating agencies should not associate the financial reports and project data in credit ratings work with the local government credit ratings, according to the NDRC.

The Chinese government is trying to instill on investors that actions will be taken if they did wrongfully.

It means that the government is not responsible on increase in debts by these firms but they are still expected to intercept to provide support for these companies, referred as local government financing vehicles (LGFV) in settling compensation concerns.

The local debt of China’s government increased by 7.5 percent to 16.47 trillion yuan or $2.56 trillion at the end of 2017, based on the calculations by Reuters, which is still within the target figure of the government.

Outstanding corporate debt amounted to 165 percent of GDP, which has been the highest among major economies and is mostly owned by the state.

USD/CAD Technical Analysis: February 12, 2018

The American dollar rallied versus other currencies around the globe, and the Loonie seems different. The USD/CAD rally due to declining prices of the oil. The Canadian dollar is commonly used by currency traders as a substitute for the oil markets which means that when the WTI Crude Oil drop, the Loonie will typically follow.

The US dollar attempts to create some stand to resume the bullish pressure, this could be done if the oil markets continue to remain weak. An unidentified employment figure will be released on Friday from Canada but failed to help things. Looking forward, the interest rates in the United States are rising which indicates a good sign for the currency. With this, the buying pressure is projected to continue, however, there is a tendency that the opposite thing may happen. We could consider this upon breaking down under the hammer formation last week. Basically, it is a breakdown beneath the 1.22 handle. In the past, there are a lot of short-term volatility in the USD/CAD which normally occur upon the intertwining of the two economies.

It should be noted that the United States and Canada are each other’s biggest trading partners which often grind each other. It can be assumed that this point can be defined as a “crucial inflection”, so it is advised to maintain a small position and add when the market establishes itself well.

EUR/GBP Technical Analysis: February 7, 2018

Volatility was predominant during the Tuesday trading session as the U.S. dollar dominates the market, which had an unfavorable effect on both currencies. The market shows the relative strength of the market.

It has been bullish during the Tuesday trading session as the British pound declined against the U.S. dollar. Nonetheless, the euro did not fall, as much as, the British pound. For now, the pair will be based on their relative strength but since the euro did not drop as low as the British pound, traders are anticipated to trade and push the pair higher. The market is close to the level of 0.89 which is a fair value in the consolidation area. The upward momentum implies the uptrend of the pair towards 0.90 level.

A massive resistance was seen at the area of 0.90 which has been the upper boundary in the past and it will be not easy to break this level. Although, there is a bit of noise found lower than the level of 0.8875 which proceeds to offer support in the market. I would suggest buying on the lows but it will be part by part instead of a big move. The pair will break out of the consolidation area and proceeds to move up towards the level of 0.95. Alternately, it is also possible to a have a new low which would send the market to reach the level of 0.86 based on the long-term charts.

Canadian Free Trade Slow Down its Economy

The Canadian economy had an unfavorable situation in the previous year. The trade data was published yesterday that shows a continuous decline in growth and tried hard to gain profits outside the energy sector despite the positive exchange rate and the demand in exports of US non-energy products reduced in terms of volumes. Also, any recorded growth over the past decades was mainly driven by higher prices.

The inactivity of the past years is considered an enigma for policymakers which may question Canada’s ability to maintain its growth rate followed by the fastest 3 percent expansion in 2017 over six years. Bank of Montreal Economist Benjamin Reitzes mentioned that the country’s current trade environment remains fragile due to the sluggishness of non-commodity exports. Canadians desire is to become “perennial optimists” of international trading amid uncertainties arises regarding advantages of open economies.

According to Prime Minister Justin Trudeau, trade is the main factor for economic growth, making his Liberal Party lawmakers advocates to preserve the North American Free Trade Agreement (NAFTA), which is currently in the seventh round of talks.

The trade performance of the country was dull except for oil and its non-energy trade deficit increased by $8.64 billion (US$6.9 billion) in December and $87 billion for the entire year. Generally, the number of export volumes including oil failed to sustain along with the imports which would mean trade industry was largely driven by the excellent economic performance last year thanks to domestic demand. With this, the Bank of Canada may delay the interest rate hike while evaluating the overall economic condition.

The not so strong non-energy trade indicates that Canada is highly dependent on oil in order to keep its trade balance from falling, even though Trudeau strives to turn around from commodities.  Moreover, energy exports came in at 17 percent in 2017 and move higher by 14 percent in the beginning of the year.

GBP/JPY Technical Analysis: February 5, 2018

During the Friday trading session, the market was a “risk off” move following,  which resulted in a rollover in the market. The latest high implies the trend to move upward in the long-term period.

The British pound rolled over against the Japanese yen and reached the new high, but has had difficulty in the latter part of the day. It breaks higher than the level of 155, which has been a significant level that would induce buyers to return. However, there is a tendency for a volatility in the market and traders should be ready for big moves. Later on, the pair is likely to move towards the level of 160 but it will take a few days or week to reach this point. The uptrend has been really strong which is why there will not be a massive correction but more of a pullback in the market.

The next target level would be at 163 but it might take some time to reach this level, although, it might take some time to reach this level. Moreover, pullbacks would also open opportunities for purchases which makes small deals to be the ideal strategy in this situation. Other than that, this market is sene to have a lot of noise, which is referred as the “Dragon” in the forex market. Risk sensitivity is still a  big deal for this pair, especially for British pound which is gaining strength. It is better to make sure for the pair to rise in value before placing bets on it, although this pair is likely to compete in the market very well.

GBP/USD Fundamental Analysis: January 31, 2018

Yesterday, it was forecasted that the British pound major pair will find it support in the level of 1.40 and it was anticipated to the line dividing the bulls and the bears. This happened as the price plunged down towards the area of 1.40 and further down for a short period of time before bouncing upward again.

Buying and the rebound of the pair were strong which resulted in an upward trend of the pair towards the area of 1.41. The trade stays beyond this level as of the moment. The volume of purchases indicates the strong presence of buyers. Nonetheless, it is essential for traders to keep in mind the end of the month is near and the prices are likely to be influenced by the month-end flows and any move at this period of time, which should be not be overlooked by traders.

Although, fundamental factors did not strongly affect the pair, as well as economically,  in the past few days which is already anticipated at the end of the month is approaching. These activities are moves largely are not part of the overall trend, which indicates that money flows have a bigger impact more than everything else. Hence, it is significant to wait on the sidelines and observe as this kind of trend will persist throughout the day since today is the last day of the month.

Regarding the economic news, ADP National Employment Report from the U.S. is anticipated to be released today but none from the United Kingdom. The ADP data is considered as a prerequisite to the NFP data, which will be published on Friday. Traders should anticipate for a strong data to keep their expectations for a rate hike from the Federal Reserve at a faster rate in the succeeding months. In general, the market is hoping for three rate hike for the year but a positive outcome through high figures on reports are necessary.

Uncertainty of Brexit: Puts the Top Financial Center at Risk

Trading relations between Britain and European Union is still uncertain, which poses risk to  London being the world’s top financial center based on the business survey on Monday.

 There was a slowed growth in the financial sector based on the quarterly survey from business lobby CBI and consultants PwC for the three succeeding quarters in the last three months of the year. For two year, the flat trend or a decline phase has been prominent in the period of two years, although, the general transaction was steady as a whole.

 Majority of the businesses are looking for certainty in Britain regarding its trade relations in the future, based on the survey done. A CBI Chief Economist, Rain Newton-Smith, said that clarity is needed to gain back business confidence which would dictate on the good opportunities against the bad ones as “consequences of failure”.

 On Monday, it is anticipated for the European Union to approve criteria on negotiations as a transition period of Brexit until March 2019 that includes new trading rules.

 The head of financial services at PwC, Andrew Kail, said that the transition period will probably take place but the financial sector needs to prepare to function outside the bloc.

 They needed to have a counter measure to sustain its trading status and business model.

Other cities such as Luxembourg, Paris, and Frankfurt Dublin are attempting to gain financial services from London to proceed with their transactions with EU customers after Brexit. Paris could surpass London as the leading financial center in few years time, according to the French Finance Minister, Bruno Le Maire, a statement on Reuters.

 Gains from financial companies proceeds to grow in the final quarter of 2017, which is also anticipated to be similar the first three months of the year, based on the recent survey.

 When it comes to the workforce, eighteen percent comes from the eurozone, which increased from 8 percent ten years ago. The municipal officials for the capital’s “Square Mile” financial district, a report says that almost one for every five workers in 2016 was from a European country, which has been the highest figure recorded so far. Meanwhile, around 59 percent of employees came from outside of Europe.

 Another survey shows 54 percent out of 02 companies wanted to make it simpler to attract more workers for Britain’s financial technology or fintech sector.

New Account Currencies Available

Good news to all traders! There are new currencies that can now be used as base currencies. These are Malaysian Ringgit (MYR), Indonesian Rupiah (IDR), Thai Baht (THB) and Chinese Yuan (CNY).

You can also use these currencies to deposit/withdraw funds to your account and participate in trading. To make it more convenient for ForexMart’s clients, it can be paid directly without the need for conversion. You can visit our registration page to open an account with these new currencies.

GBP/USD Fundamental Analysis: January 29, 2018

The British pound against the U.S. dollar has been declining in the past few days as the dollar strengthens, which seems to be the focus at the present time. Following the comments of Trump, the dollar is steadfast due to the positive economic data in the U.S. This resulted in a reversal of profit for the dollar.

The dollar has been behind since the middle of December and the pound has been one of the strong contenders for this period of time. It gained more than 800 pips against the greenback. There are indications of exhaustion and weakness for the pair. However, it is not just the weakened dollar that buoyed up the pair, the strong pound along with all the soft Brexit plans at the end of the talks.

This supported the pound to rise across markets, especially against the dollar which has been weak recently. However, besides the rhetorics from Trump, there is an increasing expectation for the new Fed chief Powell to take his post, as well as strong incoming data that would strengthen the dollar and induce Fed for rate hikes. The center of attention will be on the dollar in the next few days which is also anticipated to persist for a short period of time.

There is no major report anticipated from the U.S. or from the U.K. today, which is not surprising as it is the first day of the week. However, since the end of the month is approaching, a lot of flows is already expected and trades to be positioned prior the new month which would bring volatility to the pound. This is likely to persist in the next few days since the end of the month is near. Pressure will be eminent in trading but support will be in the area of 1.40. 

NZD/USD Technical Analysis: January 25, 2018

The Kiwi dollar broke out to upside amid the trading session yesterday, reaching the higher level of 0.74 which is close to the top of the general consolidation area in the longer term and extends to the 0.75 region. The 0.68 below is the lowest area of the largest consolidation zone which means higher price level. However, the American currency is obviously struggling and it remains to be seen for any upward movements. While pull backs could possibly offer value.

A break on top of the 0.75 handle would enable the market to edged higher or an attempt to reach the 0.7750 or 0.80 level. The volatility is projected to continue and the short-term pullback will arrive sooner or later. It is advised not to get attracted in selling due to factor against the US dollar sentiment. Market players should also take focus on commodity markets and the overall risk appetite for this helps gauge the next probable movement of the New Zealand currency. This is the expected event in the longer-term correlation and the Kiwi together with the commodities should ramp up, this will have higher chance to happen if the “soft commodities”  rallied. In addition to it, shorting could completely change the sentiment of the Forex market.

AUD/USD Technical Analysis: January 24, 2018

The Australian currency slightly declined amid Monday’s trading session and moved lower at the 0.7950 region. The rebound on short-term charts are expected along with the resumption of the consolidation period under the major level. A break over the 0.80 zone will enable the market to move upwards or impose a  “buy-and-hold” sentiment. However, creating a gap on top of the 0.81 region would indicate a  “buy-and-hold” tone with some kind of aggressiveness.

Usually, the gold market is needed in order for the AUD/USD to strengthen its move as well as to break out to the upside direction. It is expected that this situation will continue. Moreover, the gold markets drifted sideways aimed to hit the market in the near-term, but there is some support below which will trigger buyers to push again to the upside sooner or later. If this happens, the 0.78 area could possibly be the main contention area and short-term selling opportunity will hold up in that level. While a break down below there would hit the overall trend but this has low chance to happen with 10% of probability.

Expect for some massive volatility but there is an attempt at forming an attractive base in order to drive higher. It should be noted that the market will advance higher in the future but it should go along with gold.

Tax Overhaul Supported Increase for US Economy

The U.S economy is expected to expand by 2.7 percent in 2018 due to  President Trump’s tax reduction that led to growth, as indicated in the new report by the  International Monetary Fund (IMF) on Monday. This further showed positive news in the economy marking a one-year leadership of the president in the White House. However, inequality in the United States remained to be extreme.

The initial forecast of the IMF for the American growth was only 2.3 percent but they decided to increase their predictions following the approval of the comprehensive amendment of the U.S. tax code in the past 30 years.
The significant corporation tax reduction rate from 35 percent to 21 percent will stir up growth in business investments, based on the recent World Economic Outlook quarter report of the IMF.

The United States also gained benefit from the world economic rebound which resulted in additional trade and purchase of some American products. The Washington-based organization mentioned about almost 120 countries that improved in 2017, which can be seen as a synchronized upward shift of economy since 2010. The IMF recently issued a brighter forecast for the US while the Wells Fargo currently projects for a 3 percent growth for this year. However, the IMF warned that the surge appears to be temporary and other organizations, particularly the World Economic Forum coincided with this statement. According to them, the boost is not enough to lessen the inequality issues which shows that top 1 progressed while the income of middle-classes was stagnant for nearly 20 years.

The reduction in the rate of tax is basically predicted to grow this year until 2018 and the increase will soon fade after the budget deficit ramp up and the government is obliged to seek further options either reduce expenditures or raise the revenue. In addition to it, the trade deficit could possibly even grow along with the economic improvement and Americans purchase more overseas products.

ForexMart App is Now Available on Mobile

You can now use the ForexMart application on mobile.

We are launching ForexMart application on 11 january. It can be downloaded from both App store for Apple and Play Store for Android users. This allows users to trade anytime and anywhere at their own convenience by just connecting to an Internet service provider.

More and more consumers are shifting toward mobile platforms with continuous improvement in technology. Forex trading apps simplifies trading and allows accessibility through mobile phone that makes it more convenient. There is still wide range of options in placing orders from mobile devices such as iPhone or Android.

ForexMart app offers different features. Traders can access multiple charts that give real-time quotes as well as relevant economic news and latest forex analysis. Exchange rates over 100 different currencies are also available with buy and sell options. The application is especially designed for forex trading that is easy to navigate and works glitch-free for more efficient trading.

Forex traders will find this app very useful and handy. Check out this new app from your App Store  or Play Store!

EUR/USD Fundamental Analysis: January 22, 2018

The euro is being traded steadily since morning today. It seems that it weakened during Friday and it was able to support the level of 1.22 following the rebound to the support area and soared higher which continues until today. There has been major news from the U.S. and the eurozone which would bring volatility in the market.

Although the volatility present was insufficient to push the pair in either direction and stayed within a tight range between 1.22 and 1.23 over the past few weeks. There is a risk for a government closure as the bill has been passed which was blocked in the Senate through suffrage. It is anticipated that there will be an interim bill which will occur during the U.S. session. Nevertheless, this would have an effect on the dollar amid the various problems the U.S. encounter in the past few years.

This would be problematic for the Trump administration, which is not surprising. There are reports where the debate between Merkel and SPD party would continue looking for a coalition for short-term. This would keep the euro buoyed up during this period of time. There is also a press conference by the end of the week which is anticipated by the market on the decision of ECB.

For today, there are no major news from the U.S or the eurozone, which is already anticipated to happen in the second half of January. Although, there is various economic news to be reconsidered on either side, which would induce the volatility at bay.

USD/JPY Technical Analysis: January 19, 2018

The U.S. dollar pulled back during the Thursday session and move towards the 111 level, which was offered both as support and resistance in the past that made it not surprised. There is a possibility for the price to rebound and reach the level of 112. Taking into consideration that the market is highly sensitive to risk appetite as a whole. The noise will probably persist in the market but there is nothing new for the Japanese yen in general. 

As a rule, traders should buy when the S&P 500 and sell when it breaks down. Generally, the market proceeds to find support. Eventually, the market proceeds to find support close to the level of 110 with 61.8% Fibonacci retracement level. As a buyer, I realized that this market is good for short-term but not long-term ones. However, there is still choppiness in the market which should be taken seriously with respect. The attitude of the market changes every day and traders should be cautious in this regard with risk in the market. If it breaks down lower than the 110 level, this is likely to move lower towards 107.50 level. Although, this will most likely not happen soon since there is support below.

EUR/USD Fundamental Analysis: January 18, 2018

There is choppiness in trading the EUR/USD pair and continues its trading between 1.22 and 1.23 without no specific direction yet. Yesterday, the pair moved higher in the first half of the day, which will most likely favor the dollar. However, it shifted by the end of the day when the dollar has recovered and became stronger.

The euro has been gaining momentum in the past week although the euro rallied against the dollar in the previous month, which was influenced by the decline of the dollar while the euro became stronger. It was only in the past week that the euro started to strengthen independently due to the possibility of ECB tapering and completion of the quantitative easing by the end of the year. This largely influenced the euro as it rose higher and has most likely continued during the first half of yesterday. It reached the level of 1.23 and established a beeline on the trend. 

Yet, this was reversed during the second half of the day as the ECB was thrown into a disarray following the quick rise of the euro and should be brought down through statements and confirmation of the QE to return to normal levels. It clearly shows that their position would lead to termination of the QE, which was further supported by the incoming data. Although the central would rather strengthen the euro slowly. Thus, this supported the euro and slid down while the dollar was able to grow during the U.S. trading session and further pushed the price lower than 1.22 as of the moment.

For today, there are is no major news from the U.S. or the eurozone, which will most likely continue the choppiness for the day. Support is found in the area of 1.2180 then move further towards 1.21.