Market Volatility: What really moves the markets?


After more than three years of stability between the
euro and Swiss franc, the Swiss Central Bank (SNB) decided last week to terminate the exchange restriction that prevented the growth of the Swiss currency. The SNB has reduced interest rates on deposits -0.75% further. From the moment the decision is published, Franco rose sharply and broke the previous limit. Having equalized with the euro, and continued to grow through 1:10 euro for the mercadoAdemás franco.volatilidad that growth in the franc against the euro has increased in relation to all regional currencies such as the dollar relative to which it increased by 18%. SNB months resist pressure to abandon the limit of the exchange rate against the euro and Swiss currency investors are a major financial crisis considered a safe investment, and this is the reason. Switzerland's economy is highly export-oriented, so the BNS, fearing a frank too strong, could limit economic growth. When the 2011 years Swiss National Bank decided to avoid the strengthening of the national currency. In addition to reducing the risk of deflation, this measure gave the Swiss exporters that 56% of its products sold outside Switzerland's borders, protecting the competitiveness of the poor, which would increase the franc certainly caused. The final decision BNS resumed this risk back into the game, making the unions began warning that such a move will have a negative impact on the number of jobs, but also the profits of export-oriented companies. According to the sudden movement of the SNB of CME Group and large fluctuations of the franc, the biggest impact on the market had to speculative investors, such as hedge funds, which combined two weeks ago in the largest number of sales positions in June 2013. the latest data show that hedge funds and other speculative investors were at a disadvantage with 24,171 futures contracts and 662 additional options worth $ 3.500 million. And financial institutions are also covered by this market turbulence. IG Group issued an urgent announcement that could suffer a loss of 30 million pounds. After a reduction in interest rates and the abolition of exchange restrictions franc, Switzerland still faces a number of challenges in the future. Like most economies of the euro area, Switzerland has a problem with persistently low inflation and slow economic growth, since a strong franc can only deteriorate further. The long-term impact of the SNB to raise the franc exchange restrictions will depend on the level at which the franc stabilized against the euro. 10.1 lower levels could further complicate the situation. The long-term impact of the SNB to raise the franc exchange restrictions will depend on the level at which the franc stabilized against the euro. 10.1 lower levels could further complicate the situation. The long-term impact of the SNB to raise the franc exchange restrictions will depend on the level at which the franc stabilized against the euro. less than 10 levels.
Under pressure from the strong dollar, the price of gold continues to trend bajistaque began in early February and has since fallen even 8: 45%. Lately, many things are happening in the euro area and, of course, are reflected in the financial markets, the movement of the euro and in the price of gold. Since March 9, the European Central Bank begins with a 

program of buying bonds that will last at least until September 2016, which will significantly increase liquidity in the market. Recently, we have noticed an increase in demand when it comes to gold coins and bullion. According to UK Mint, gold demand is increasing especially in physical form. The crisis in Greece and its uncertain future in the euro area have led to more people start buying gold to protect their property. This trend is likely to increase in the future if the crisis continues, and it is very likely. If you happen to this country leaving the eurozone and reintroducing the drachma as its national currency, the value of citizens in euros will be decimated, and it is easy to conclude that all those who are in a situation, try to secure their property, and gold traditionally it has the role of guardian of values. Another interesting fact we saw in 2014. This is a big difference in the price movement of gold in relation to the different currencies. More specifically, the dollar price has been fairly stable during 2014 but has increased in other currencies. Gold retains the role of guardian of values. People continue to buy the precious metal as a long-term investment, especially if some instability is expected, either economic or political. For example, Russian investors who invested in the precious metal, have succeeded in considerably greater degree than the other, to preserve their properties. No matter what the price of gold mainly denominated in dollars, the truth is that it is very important for individual investors what their price in local currency, as this is what really dictates the behavior of investors. A bright spot in regards to the growth of gold prices is the emergence of reports suggesting that the central bank, which until recently was selling gold, now once again starting to buy. Russia once again lead it. You can generalize that the central banks of developing countries tend to buy gold to diversify their reserves, which are largely in dollars. For now, the percentage of gold reserves in developing countries is still, on average, small, about 3%, confirming the claim that you can expect countries to continue in the future with buying gold. For many other factors in each case will have a dominant influence the movement of the US currency. the percentage of gold reserves in developing countries is still, on average, small, about 3%, confirming the claim that you can expect countries to continue in the future with buying gold. For many other factors in each case will have a dominant influence the movement of the US currency. the percentage of gold reserves in developing countries is still, on average, small, about 3%, confirming the claim that you can expect countries to continue in the future with buying gold. For many other factors in each case will have a dominant influence the movement of the US currency.
After seven months, the continued decline in crude oil prices finally stabilized and lower growth reached the highest level since the beginning of the year. In the past three weeks, the price has risen 24.5%, which is the highest growth rate three weeks since January 2009 and is currently traded around $ 54 a barrel. The downward trend that preceded this growth, which influences the price of crude oil fell from $ 107 to less than $ 43.50 a barrel over the past seven months. The price increase caused by recent events have pointed to a possible decline in production. British Petrol announced recently that it would reduce investment in new projects. And the other big oil companies have taken a similar decision. According to Baker Hughes, a company dedicated to service oil wells,  ordering rigs they fell to the lowest level in the last three years, which is a clear sign of declining interest in new oil wells. In addition, other factors have contributed to price growth. Among other things, the strike of workers in some oil refineries in the United States raised the price of gasoline and diesel due to fears that there will be a decrease in the production of this fuel. Major producers like Russia, Venezuela and Iran already in a difficult situation because of the low current price. While lower prices mean that fuel is cheaper, however, at the same time means increased geopolitical and social instability. If the price stabilizes at 40 or 60 dollars per barrel, it is well below the $ 100 optimal and many economists believe it will exert great pressure on inflation. Many analysts believe that despite the decrease in the production of global demand will soon increase. Moreover, stocks continue to rise. Only in the USA. UU. They are currently at the highest level in the last 84 years, as confirmed by data from the American Petroleum Institute. The question is often done lately is whether this is definitely the fund or if the price will continue to fall. However, it is too early to tell. When the price decreases  drastically compared to the previous minimum rarely continued growth, usually the price previously stabilized. However, what makes most economists agree is that after a period of stabilization, we expect a gradual increase in prices. According to some estimates, the price of crude oil during this year may rise again above $ 60 a barrel. The price of crude oil has risen sharply overnight, due to increased tensions in the Middle East because of the situation in Yemen. In less than 24 hours, the price has risen to $ 4 which makes even a swing of 7.47% and is currently at the level of $ 51.44 per barrel.
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