The oil price continued to decline, and the pressure on Saudi Arabia is increasing against the background of the currency peg refusal. According to the analytical agency the contracts, which are used for trading on the exchange rate of riyala over the next 12 months rose to record highs in the last 13 years.
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Reservoirs for oil are overcrowded and their number in the world is ending. In the near future place may finish even on tankers, which, of course, increases the possibility of lower prices for crude oil, say experts. Goldman Sachs company informed their customers that increase of oil reserves in the world market will be superimposed on a warm winter. Combination of these two effects may reduce the price of oil to $20 per barrel, and thus stop production completely.
Housing in China becomes more expensive for the first time over the last year on annualized basis, showing the possibility to stabilize housing market, which may accelerate the paces of economic recovery. Experts believe that opportunity of a sharp decline in housing prices is unlikely, as there is a huge number of unsold construction projects in the market now, which are in major cities across the country.
Friday's terrorist attacks in Paris collapsed Asian stock market to a minimum of the past six weeks. Also emerging market currencies have fallen, traders went into safe assets after the tragic news that showed a weakening of the economy. Today, the financial analysts predict the following data: British FTSE released at 100, losing 0.7%; German DAX fell by 1.3%; CAC France will lose the most - 2.2-2.3%.
This morning on the European trading session, gold prices rose after the head of the Federal Reserve Janet Yellen declined to comment about plans of the Central Bank to raise interest rates in December. However, the growth of dollar can be tempered as "American" will first restore its position after the reduction.
The growth rates of China's economy are still unable to gain the required speed. This is evidenced by the Asian stock market, which decreased on Wednesday against the backdrop of a two-pronged Chinese data. The industrial production index of October fell to 5.6% in the previous month, against the indicators of last year, thus demonstrating not enough stable growth from 5.8%. Volumes of retail sales rose by 11% against last year's values, on the background of expected growth by 10.9%.
Confidence in the US economy is growing, as well as the US dollar. According to MarketWatch analysts, today US corporations are concerned about the strengthening of national currency and sales abroad the USA, in turn, the majority of investors in the market feel quite confident. One of the leading investment strategists of BlackRock Russ Koesterich said: "Now any action to strengthen the dollar or tightening the monetary policy may dramatically slow down increase corporate profits, as well as their extension. However, according to the productivity of the US stock market over the past week, investors do not attach importance to this fact."
The pressure of uncertain prospects continues to loom over the UK recovery. In this context, the Bank of England may leave interest rates at minimum levels and the next year. At yesterday's trading the pound fell against the dollar by more than 170 pips after the Bank of England's officials announced abount saving rates at 0.5%. They explained their decision by the fact that sharp slowdown in the UK can reduce growth and inflation.
Gold prices at today's trading were under pressure close to record lows for the last five weeks. Investors are awaiting the release of major US data and hope to get specifics about the state of economy about the state of the economy and a potential growth of interest rates in near future. Gold futures on the New York Mercantile Exchange, Comex division for December delivery rose by $4.60, or 0.41%, to $1118.70 per troy On Tuesday, positions of gold fell to $1113.60, and reached record lows from October 2.
According to yesterday's official data from China it is reported, that country is now in a serious state of recession at the end of this year. Such a scenario causes the fears of new disturbances of prices on market of raw materials with the prospect of doing damage to British industry. China's manufacturing industry reduces the rates of work for the third month in a row, in turn, the service sector shows a slow, but steady growth since the beginning of 2008, during the crisis.