Monday, 31 March 2014

Is Mrs Watanabe Buying Gold?

Ralph Shell, Excel Analyst

Implementation of the Japanese consumption tax, from 5% to 8%, is going to commence on April 1st, another phase of Abenomics.  Attempting to reverse two decades of deflation, PM Abe has aggressively expanded the government's deficit spending.  The goal is a 2% inflation rate.

Excel Markets May 2014 Forex Demo Trading ContestCritics of the new economic plan have rightly observed  tax revenues are less than 45% of expenditures.  The Japanese accumulated sovereign debt is over 230% of the GDP.  Perhaps economic growth will eventually bail them out, but they also need additional revenue.  Therefore the consumption tax is beginning, and there will be another increase to 10% in 2015.

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Friday, 28 March 2014

Where Have All the Aussie Traders Gone?

Ralph Shell, Excel Analyst

We wrote about the saga of the missing Aussie traders on February 18th last.  Then, we noted there was a decline in the trading activity of the Australian Dollar at the CME futures markets, and the AUDUSD had just rallied from .86 to above .90.  With the advantage of 20/20 hindsight we can confirm the market was over-extended on the short side.  The result was a short-covering rally.  Another month has passed and it produced another month of bearish disillusionment.

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Thursday, 20 March 2014

Will Better US Current Account Balances Become a Mega Trend?

Ralph Shell, Excel Analyst

It seems hard to believe markets can be cheered by a quarterly current deficit of $-81.1B but, then again, everything is relative.  That is what was reported Wednesday for the 4th quarter 2013 US current account.  Remember, the current account balance is a summery of the goods and services exported minus the imports of the same categories.

No doubt the $81.1B current account deficit is a large number but this quarters current account balance is the smallest since 1999.  Further, the current account deficit is down to 1.9% of the GDP from 2.4% last year.  In 2005, this percentage was up to 6.5%.  This still means the US is living beyond its means, and the deficit must be offset with either loans from abroad, or investments made by foreign interests into the US.

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Friday, 7 March 2014

US-Based Trading Servers Incur DST Modification

Note: US-based trading servers will be changing their time zone offset on Sunday 9th March 2014.

ExcelMarkets.com will be changing server time from UTC+2 to UTC+3 i.e. moving forward one hour on Sunday 9th March 2014.

These changes are in accordance with the Forex market session time changes due to Daylight Saving Time (DST) in the United States on Sunday 9th March 2014, and it remains in effect until Sunday 2nd November, 2014.

The MetaTrader 4 platform time will remain at a market open of 00:00:00, and a market close of 23:59:59 throughout the year.

If you have any questions or concerns regarding this matter please contact support[at]excelmarkets.com.
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