Oct 12 2020 0

Here are the most important financial news of the day that no forex trader should miss. Check out these news to find the most suitable forex trading strategies.

Cool down the yuan

China's policymakers have acted to curb the yuan's rise by removing rules that make betting on the currency expensive. According to a statement from the People's Bank of China, financial institutions will no longer have to spend cash when buying foreign exchange for customers through currency forward contracts, effective by Monday. 

forex news Oct 12

Banks previously had to hold 20% of their sales on some forex futures, a move that came about two years ago when the currency dropped to 7 per dollar. CNH's exchange rate also dropped by 0.7% against the greenback in the early trading session on Monday.

Market on Monday

Asian stock futures showed a mixed start to the week for equities, while S&P 500 index futures fell at the open. The yuan dropped about 0.6% against the dollar, and the Australian and New Zealand dollars also slipped when the Forex market opened. Last week, the S&P 500 ended with a boost as some traders bet that US lawmakers are getting closer to reaching a deal that offers more financial stimulus. The daily currency correction in China will be closely watched on Monday following a move to curb the central bank's rally. The focus of attention will soon be on the earnings season on Wall Street, due to the deadline for reporting the results of the major banks.

The blaming game

President Donald Trump and House of Representatives Speaker Nancy Pelosi have blamed each other for the lack of progress in a new plan to support the US economy, while a senior aide to the White House said he hoped the Negotiations will continue and a Fed official said it is in desperate need of financial help. After a week of shifting signals about the amount of stimulus and how to get there, Mr Trump told Fox News that Republicans were "having trouble with Nancy Pelosi." Meanwhile, Pelosi has labeled the government's proposal to deal with the pandemic's health impact "completely inappropriate." White House economic adviser Larry Kudlow said earlier that he hoped Treasury Secretary Steven Mnuchin and Mrs. Pelosi would hold more talks this week. Kudlow told CNN's "State of the Union" that Mnuchin can increase the amount of aid the government is providing.

Status lost

Hong Kong's homegrown banks are rapidly losing their status as the city's most suitable traders, being replaced by mainland Chinese rivals, who now hold the majority of the Senior position in Asia's largest financial center. While this shift has long seemed inevitable given the expansion of mainland talent and the dominant role of Chinese issuers in Hong Kong, the pace of change has recently amazed some veterans in the industry. They say this is partly explained by Chinese securities firms' reluctance to hire and promote Hong Kong people after anti-government protests rocked the former British colony in the year. 2019. The share of investment banking jobs for locals in the city has fallen to about 30% from 40% two years ago, with 60% of jobs now in mainland jobs and 10% by expats, according to Robert Walters Plc, a recruitment company.

Regime change

A rare regime change in economic policy is pushing central banks out of the pivotal role they have held for decades. Fiscal policy, which was no longer seen as an engine of economic growth during the inflationary 1970s, has now become central in the fight against Covid-19. 

forex news October 12

Governments have subsidized wages, mailed checks to households, and secured business loans. They have been rising record budget deficits - an approach that economists have steadily embraced, since the last major crash in 2008, ushering in a decade of dismal growth. And public spending at low level during the plummeting pandemic is increasingly seen as a key factor for a sustainable recovery. When the stimulus appears to be drying out, as it did in the US last week, it will start to worry investors. How long keeping the stimulus pumps open will be the main theme at this week's International Monetary Fund meetings - and the biggest challenge for national budget politicians, once they came out of crisis mode.


Fanara Filippo

Hey, I’m Fanara Filippo. I’m the founder of this site. I'm currently living in Bangkok, Thailand. I have been trading forex for more than 5 years. You can read my articles about the best forex brokers on this page. Let’s review brokers today.

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