US Labor Market Delivers Controversial Data
February 8, 2010 at 1:11 pm | In News about Forex | Leave a CommentTags: economy, nfp, non-farm payrolls
The controversial US labor data released by the Department of Labor added to uncertainty on Forex market.
The unemployment rate in spite of all expectations fell to 9.7 percent, 0.4 percentage point lower from its top reached in October. However the government report on non-farm payrolls showed unexpected shrinking of jobs. According to this report, the US economy lost about 20.000 jobs in January. Prior to the release the analysts had expected payrolls to incline by 5,000 and the jobless rate to edge up to 10.1 percent. A separate report showed that the country lost 8.4 million jobs since 2007 when the global downturn began. According to previous estimates, this figure had to be 1.2 million.
Some progress was seen in manufacturing. More workers were hired by manufacturers employers for the first time in 3 years, besides, the hours and wages were also increased.
The US President Barack Obama welcomed the data saying that creating new working places is now the main target of his administration. However, the unemployment rate is likely to rise in the upcoming months as workers will return to the US labor market.
To feel the pulse of major economic events you may follow Economic Calendar.
BOE and ECB Keep Rates Low
February 4, 2010 at 3:37 pm | In News about Forex | Leave a CommentTags: BOE, ECB, Trichet, UK interest rate
The European Central Bank, the main financial institution for 16 nation eurozone, today after the end of its monetary policy meeting made a decision to maintain its benchmark refinancing rate at 1% level.
The ECB February monetary policy decision came in line with all prior expectations. The Bank also decided to delay withdrawing of its stimulus measures. The ECB interest rate stays at its record low during last 9 months.
At his press-conference Jean-Claude Trichet, the chairman of the European Central Bank, spoke about Greece’s deficit crisis. Today The European Commission supported Greece’s budget reform plans. According to these plans, a huge deficit will be adjusted to meet the required level of 3% of the GDP.
The Bank of England also voted not to lift its bank rate maintaining it at 0.5% halting its quantitative easing. The Bank has already pumped about £200 billion aiming to revive economy. The British economy started picking up from the worst recession only in the fourth quarter of 2009, however, BOE banking officials do not intend to raise rates in the near future.
The next monetary policy decision of both banks is set on March, 4. The complete table of all monetary policy meetings of the world`s major central banks may be viewed here.
Norway Votes to Leave Rates on Hold
February 3, 2010 at 4:11 pm | In News about Forex | Leave a CommentTags: interest rate, Norges Bank, rba
Wednesday, the Executive Board of Norges Bank voted to maintain its benchmark interest rate at 1.75%.
The decision came in line with all prior expectations. However, leaving rates on hold now may mean that at the end of the next monetary policy decision due on March 24 the Bank, headed by Svein Gjedrem, should raise the rate.
In its statement the Bank admits recent improvements in Norwegian economy matching all expectations. The Bank`s efforts resulted into limiting inflation below 2.5 percent level. Inflation rate is expected to decline until summer. Unemployment remains relatively low.
Norway fallowed an example shown by Australia yesterday when the RBA made a decision to leave its Cash rate at 3,75% signaling that the economy is not ready for rate hikes yet. Both countries have been the first among major central banks to lift interest rates. Oil-rich Norway was the first central bank in Europe to raise its interest rate after the global downturn, raising borrowing costs in October from 1.25 percent to 1.5 percent.
BOE Remains Rate at 0.5%
January 8, 2010 at 10:18 am | In News about Forex | Leave a CommentTags: Bank Rate, BOE, UK interest rate
The British Bank Rate has been unchanged by the Bank of England`s Monetary Policy Committee (MPC) decision.
MPC unanimously voted to keep the benchmark interest rate at a record low of 0.5%. Besides, the BOE officials decided to keep its £200 billion bond purchasing program, injecting cash flows into the U.K. economy. The BOE officials made clear that the Bank is not ready to introduce any changes into Britain`s monetary stimulus program. Such a decision was widely expected by the analysts. However, economists admit that the signs of recovery are fragile and uneven, large public debts make expansion weighed.
The BOE head Mervyn King prefers to run the risk of inflation hike than to tighten domestic monetary policy before the economy completely recovers.
Among the world major central banks the BOE remain the sole which takes further steps to spur demand. Such financial institutions as the European Central Bank or the U.S. Federal Reserve started withdrawing emergency measures. However some smaller banks continue to raise rates in response to the global economic recovery
The next BOE`s monetary policy meeting is due on February 4. However, it is widely expected that the Bank will not surprise leaving the Bank rate at a record low.
Bank of England to Maintain Bank Rate at 0.5%
January 6, 2010 at 10:25 am | In News about Forex | Leave a CommentTags: Bank Rate, BOE, UK interest rate
Wednesday the Bank of England starts its monetary policy meeting, its first one in 2010 and the first one among major central banks.
At the end of the meeting Thursday at 12:00 GMT the Bank is due to announce its decision on the benchmark interest rate. According to the majority of experts, the BOE will decide to keep the bank rate at its current level of 0.5% amid hopes of sooner exit from the deepest recession since World War II. The nation`s economy is expected to return to growth in the fourth quarter 2009.
The Bank of England is expected to inject another 200 billion pounds into economy in order to spur lending by domestic commercial banks. The BOE`s monetary policy will be focusing on the task to guarantee inflation limit at 2.0%.
Looking ahead to 2010, the Bank of England is forecast to maintain its bank rate at the lowest point until the second quarter. However, in the event when inflation unexpectedly hikes, the decision to raise interest rates may come sooner.
According to the recent research, home prices in the UK rose 5.9% in 2009. This signal shows that the UK has endured the financial slump and currently the country is on the way of recovery.
Merry Christmas and Happy New Year
December 24, 2009 at 4:32 pm | In News about Forex | Leave a Comment
Dear Sirs!
Best wishes for a Merry Christmas and a safe and happy New Year! We Hope New Year will bring you a lot of joy, happiness, love, health and prosperity!
Forex Ltd would like to show respect to you for being with us in 2009. For our part, we do our best to provide the services of the best standards meeting our Client`s highest requirements.
Stay with us in 2010.
Our greetings,
BOJ Keeps Rate at 0.1%
December 18, 2009 at 1:22 pm | In News about Forex | 1 CommentTags: BOJ, economy, Federal reserve, interest rate
Today the Bank of Japan`s policy board made a decision to maintain its benchmark interest rate at 0.1%.
The Bank made such a decision in order to fight against deflation. The banking officials consider deflation as a new problem for Japan`s economy, as it may make harm to recovery. The decision to maintain the key rates came in line with all prior analysts` expectations. Now the majority of economic observers predict that the BOJ will keep overnight call rate on hold throughout 2010.
The world`s leading central banks have already started withdrawing stimulus measures. The Bank of Japan remains the sole financial institution to continue implementing financial aid measures. Thus the Japanese government pledged to inject additional 7.2 trillion yen into economy, the first stimulus package since Hatoyama took the office in September.
In its assessment of the nation`s economy the BOJ stated that the economy continues picking up, however, further recovery should be uneven. But increase in Japan`s output is continuously slowing. Thus, GDP in the third quarter rose an annualized 1.3%.
Earlier on December 16, the Federal Reserve decided to keep its federal funds rate at 0.25% as the economy now is not strong enough for increase in rates. The only bank to surprise analysts was the Norges Banks, which made a decision to lift the benchmark rate to 1.75% signaling that the country`s economy is recovering.
The complete coverage of all interest rate updates may be viewed at Interest Desicion Page.
Changes in Company`s Working Hours and Trading Terms During Christmas and New Year Holidays.
December 16, 2009 at 1:47 pm | In News about Forex | Leave a CommentTags: forex, forex CFD
Dear Sirs! Please take notice of Company’s working hours and trading terms during Christmas and New Year Holidays.
Changed working hours and client support
| Date | Trading (GMT) | Customer service (GMT) |
| 24.12.2009 | trade closes at 17:00 | open |
| 25.12.2009 | trade closed | closed |
| 26.12.2009 | trade closed | closed |
| 27.12.2009 | trade closed | closed |
| 28.12.2009 | trade open | open |
| 29.12.2009 | trade open | open |
| 30.12.2009 | trade open | open |
| 31.12.2009 | trade closes at 17:00 | closes at 13:00 |
| 01.01.2010 | trade closed | closed |
| 02.01.2010 | trade closed | closed |
| 03.01.2010 | trade closed | closed |
| 04.01.2010 | trade open | open |
Please note that days of December 31, 2009 and January 1, 2010 are banking holidays, thus, wire transfers will not be carried out during these days. Other means of payments will be carried out according to client support working schedule.
Changed trading terms
| Forex margin | 3% | from 27.12.2009 to 31.12.2009 |
| CFD margin | 20% | from 27.12.2009 to 31.12.2009 |
| Spread (all instruments) | tripled | from 27.12.2009 to 31.12.2009 |
The above mentioned trading terms will be applied to all positions of the Clients, including those opened prior to introduction of temporary trading terms. Please consider this information while trading operations planning. Should you have any questions regarding holiday working hours or trading terms, please feel free to contact by phones indicated on Contacts page or via internal mailing system of the Client-Service.
You may view the complete story at Company News Page.
Bank of Canada Holds Rate Unchanged
December 9, 2009 at 12:40 pm | In News about Forex | Leave a CommentTags: boc, interest rate
The Bank of Canada did not surprise economic community announcing its decision to maintain its key interest rate at 0.25%.
The BOC monetary policy decision announced on Wednesday matched all analysts` expectations. Besides, the Bank declared its desire to maintain the overnight lending rate at its current value until the middle of the next year.
In its final monetary policy statement this year the BOC anticipates inflation to decrease to traditional 2% level until the middle of 2011. The total risks to inflation are “tilted slightly to the downside,” the BOC officials said in a statement.The Bank officials outline that economic outlook has improved since the Bank made its last predictions in October. The Canadian central bank, headed by Mark Carney, expects modest recovery throughout the next year. Canadian economy tends to rely on domestic consumers and many analysts predict that the recovery will not sustain until export, boosted by strong demand in the USA and Japan, surge.
Next time the Bank is gathering on 19 January 2010 and is not likely not to raise the overnight rate target.
The complete Bank of Canada statement is given here.
ECB Kept Rate at 1%
December 4, 2009 at 1:26 pm | In News about Forex | Leave a CommentTags: ECB, economy, interest rate, Trichet
Yesterday the Governing Council of the European Central Bank after its monetary policy meeting made a decision to remain its key refinancing tender rate at record low level of 1%.
At his press-conference the ECB chairman Jean-Claude Trichet announced the bank`s plans to withdraw stimulus measures sooner than expected. He plans to tie up current 12-month loan program. However, Trichet did not give any confirmative answer when exactly the bank intends to lift the benchmark rate. ECB`s head again emphasized that rate level is appropriate for the European economy.
Bank`s plans include withdrawal of emergency measures should not threaten economic recoveries in 16-nation zone as these measures are designed to come back to normal refinancing operations.
Raising further economic outlook the bank, headed by Trichet, forecasts that Euro-Zone`s economy will perform rise from 0,1% up to 1,5% this year. According to analysts, low rates are capable to trigger inflation. However the Bank predicts that inflation will be contained below 2% level.
The next ECB rate decision is due on January 14, 2010. However it is widely predicted that the rate will remain at the same level up to mid-2010.
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