Crude oil remains the main driver of financial markets and the oil dropped sharply after the release of economic data which showed that the Chinese economic growth retreated lower than expectations hitting the weaker pace of growth in 24 years. On the other hand, the International Monetary Fund has cut its forecast today for the world economic growth for the current year , rising fears and worries among all financial markets. Then the pair has witnessed the shift of the trend from bullish to bearish.
As we have expected Greenback strengthened against the cable as the Federal Reserve is under pressure to raise interest rate this year while the head of the Bank of England has excluded any interest increase. Also, general election in U. The Silver remains trading within an Ascending channel, where the prices have faced a strong barrier around the upper line of the channel, then entered within a downward correction step after the gains since the beginning of As long as the silver remains trading above the mentioned level, the prices represent good opportunities to enter buy positions which is the main expected scenario.
She also claimed that the Fed will keep the current monetary policy until the recover of the U. As we can see on the H4 chart, the Silver declined for the third consecutive day and broke the EMA and the Fibonacci level And by the formation of the Classic Bullish Divergence between the trend of the prices and the Stochastic trend, we expect a slight recover of the Silver toward the main targets stated in our daily Newsletters.
Silver dropped sharply against the U. Today the traders will focus on Janet Yellen testimony to see if there are any future changes in Fed monetary policy and when the first rate hikes will begin. As we can see on the daily chart, the Silver prices declined significantly toward the Fibonacci level The Silver retreated slightly against the U. The Japanese Yen rose significantly amid the sharp drop of the global stock markets and expectations and concerns about the decrease of the high growth rates which were affected by the significant rebound of the oil prices while the governments are trying to activate stimulus measures to support economic growth.
The recent events in Iraq, which affected negatively the Iraq's oil exports, which have pushed the crude oil prices higher. Concerning the U. The major events to watch today are : , U. The Measures of inflation for the Canadian economy was better than expected as retail sales increased 1.
Also the consumer price index rose 0. Also the Philadelphia index released on Thursday give another sign of improving US economy during the month of March. Also the unemployment rates fell to thousand in March, compared to February reading which recorded thousand, which indicates a marked improvement in the growth rate of U.
As we can see on the H1 chart, the dollar loonie is trading within the Ichimoku Cloud and the prices have breached down the Fibonacci level After the release of the performance of the key sectors in the euro area during the previous week, we wait for the data more Japan recorded a trade deficit of As we can see on the H4 chart, the Euro Yen prices remain in a range trading between the and Which represents the Fibonacci Retracement As for the British currency, the U.
K government announced on Wednesday, March 19, an increase in its economic forecasts for and to reflect the improvement of the economy, which was confirmed during the first months of the year. Indeed, the minister of economy George Osborne, forecasted a growth of 2. Prices are expected to fall toward the main support levels stated in our daily Newsletters.
The Japanese Yen dropped sharply during the previous sessions, which provoked high import costs, prompting a widening trade deficit, which reached On the other hand, the investors are waiting today for the BoE MPC meeting and the release of the UK jobless claims report, which is expected to record a decline of The Pound Yen remains trading above the Fibonacci level Concerning the British economy, we are waiting for the FOMC meeting for this month, also the announcement of the labor market data which is expected to keep the unemployment rate in the three months rate of 7.
The investors and global market are holding the major event for this week which is the FOMC meeting regarding the U. The Federal reserve bank is widely expected to keep interest rates lowest level between 0. As we can see on the daily chart, the Pound Yen prices did not succeed to break through the Fibonacci level Investors are waiting for jobs report and the unemployment rate in Australia ,while they wait the release more Investors are waiting for jobs report and the unemployment rate in Australia ,while they wait the release of U.
S economic news which will add some dynamic to the market including the US Retail Sales and the PPI which measure the inflation rate, also other news including the Jobless Claims report. As we can see on the daily chart, the Aussie Dollar ha finished its Pullback step of the Inverted Head and Shoulders, then steadied around the Kijun-Sen level of the Ichimoku Cloud ahead of the major economic data releases.
The single currency suffered from disappointing data released from France and Germany which has raised deflation more The Euro Pound rebound after the release of positive German data, but quickly the pair reduced gains after an official said the European Central Bank is ready to cut interest rates on deposits if necessary. The Euro Pound has kept is sideways trading for many sessions forming a correction step within a Descending Flag.
However at the beginning of this week, the prices broke through the Descending Flag to the upside and we notices a significant bullish wave hitting 0. The single currency suffered from disappointing data released from France and Germany which has raised deflation concerns and growth risk in euro-zone. They need also to keep an eye on the G20 meeting of finance ministers and central bank chiefs, taking place this weekend in Sydney. As we can see on the H4 chart, the Euro Pound is trading within a symmetrical triangle.
And we expect that the prices will break through this triangle to upside toward the next expected targets that we will mention in our daily Newsletters. As we can see on the weekly chart, the Aussie Kiwi dropped sharply and formed the main Descending Channel. Now the pair is in process to recover toward the 1.
The U. The decline in these numbers is probably due to an exceptionally snowy winter this year in several U. On the other hand, the producer price index PPI in Switzerland remained stable unlike expectations, according to official figures released onThursday. The prices are more S debt issue as there's no sign that they will not reach an agreement on a debt ceiling plan in the near-term, with the government remained partially shutdown. So the Dollar Swiss is very convenient to buy for now, but we recommend our dear traders to monitor the key support level of 0.
Secondly, as a result of failure to achieve any progress in resolving the crisis of the U. Concerning the technical analysis, we notice on the daily chart that the Dollar Swiss prices are trading into a sideways channel within a bullish trend to confirm the upturned on the long term trading. Download the April issue. Policy Research Working Papers Download working papers on major macroeconomic policy issues.
This time, he says, the global economy is "facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years—unless major supply increases are set in motion. Download Foreword. The war is leading to high commodity prices, adding to supply disruptions, increasing food insecurity and poverty, exacerbating inflation, contributing to tighter financial conditions, magnifying financial vulnerability, and heightening policy uncertainty.
The outlook is subject to various downside risks, including intensifying geopolitical tensions, growing stagflationary headwinds, rising financial instability, continuing supply strains, and worsening food insecurity. These risks underscore the importance of a forceful macroeconomic and structural policy response at the global and national levels.
See Less. The outlook is subject to various downside risks, including intensifying geopolitical tensions, growing stagflationary headwinds, ris See More. Outlook Highlights Charts and Data. Downside risks to the outlook include a lingering pandemic and resulting mobility restrictions, financial stress triggered by tightening global financial conditions, larger-than-expected spillovers from the war, and disruptions from natural disasters. Downside risks to the outlook include a linger Output in ECA is forecast to shrink by around 3 percent in , as the invasion and its repercussions reverberate through commodity and financial markets, trade and migration links, and business and consumer confidence.
The largest regional spillovers of the war in Ukraine are likely to be through higher commodity prices and weaker external demand from the euro area. The invasion has increased the risks of widespread financial stress, a de-anchoring of inflation expectations, and food insecurity. A protracted war is likely to further heighten policy uncertainty and fragment regional trade and investment integration.
The largest regional spillovers of th Elevated inflation, tighter financial conditions, and policy uncertainty are expected to take a toll domestically, while slowing growth in key export markets, U. The largest economies in LAC will be some of the slowest growing this year, dragging region-wide growth down to 2. Growth is set to slow further in to just 1. Recent high inflation is likely to extend monetary policy tightening cycles.
Risks to the baseline projections are tilted to the downside, and include further shocks to global growth, domestic stagflation, financial stress, and social unrest linked to sharply higher prices for food and energy. Growth in Latin America and the Caribbean LAC is forecast to slow sharply in and remain weak in the following two years. Growth is set to slow further in to The region faces a growing divide between oil exporters—which on net should benefit from elevated oil prices and high COVID vaccination rates—and oil importers, which face higher food and energy prices, deteriorating external balances, and still limited vaccination rates.
Risks to the outlook are predominantly to the downside, with drought conditions, policy uncertainty, new outbreaks of COVID, and geopolitical tensions threatening to raise prices further, erode real incomes, and aggravate social tensions. Output in the Middle East and North Africa region is expected to expand by 5. The region faces a growing divide between oil exporters—which on net should benefit from elevated oil prices and high COVID vaccination rates—and oil importers, which face higher food and energy prices, deteriorating external balances, and still limited vac Growth is expected to slow from 7.
The external environment has worsened markedly, with soaring energy and agricultural prices, slowing global growth, and rising financing costs. While domestic conditions remain solid in many economies, Afghanistan is facing a humanitarian crisis and Sri Lanka is facing dual balance of payments and sovereign debt crises.
This includes paying off debts, overhead, or any other fixed costs associated with a business. In the United States and other countries, companies and individuals have to reconcile accounting on a yearly basis. Accounting liquidity is an excellent measure that captures financial obligations due in a year.
These measures are useful tools for not just the individual or company in focus but for others that are trying to ascertain current financial health. If there is a large disparity between these figures, or much more assets than obligations, a company can be considered to have a strong depth of liquidity.
This can be achieved using a total of four formulas: the current ratio, quick ratio, acid-test variation, and cash ratio. Highly liquid assets will correspond to higher numbers in this regard. Conversely, any number less than 1 indicates that current liquid assets are not enough to cover short-term obligations. Unlike the current ratio, the quick ratio excludes current assets that are not as liquid as cash, cash equivalents, or other shorter-term investments.
The acid-test ratio seeks to deduct inventory from current assets, serving as a traditionally broader measure that is more forgiving to individuals or entities. In this sense, the cash ratio is the most precise of the other liquidity ratios, excluding accounts receivable, inventories, or other assets. In the financial services space, even large companies or profitable institutions can find themselves at liquidity risk due to unexpected events beyond their control.
Liquid markets benefit all market participants and make it easier to buy and sell securities, stocks, collectables, etc. Additionally, high liquidity promotes financial health in companies in the same way it does for individuals. This metric is a commonly used as a measure in the investing, banking, or financial services space. Liquidity determines how quickly a given asset can be bought, sold, or exchanged without a disparity in market price. Of all assets, cash or money is the most liquid, meaning it is the easiest to utilize.
All other liquid assets must be able to be quickly and efficiently converted into cash. However, high liquidity is associated with lower risk, while a liquid stock is more likely to keep its value when being traded. Is a Home a Liquid Asset? Selling any property can incur additional costs and take a long amount of time. Additionally, there is often a price disparity from the time of purchase, meaning a seller may not even get its original market value back at the time of the sale.
Additionally, the company is a popular single-stock CFD offering at many brokerages, with very high volumes. Until you are eligible to withdraw or collect a pension, without early withdrawal penalty, it is not considered a liquid asset. The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Read this Term providers to retail order flow and interbank ECNs via their prime broker relationships with major FX dealers.
Moving to China, Avi Mizrahi has put his sights on China where he correctly predicted that we would see more IPOs and foreign investment take place. During , warnings about binary options were flying all over the place from global regulators. Nonetheless, new brokers continue to take the view of launching without regulation first and worrying about getting a license later. Bitcoin, what happened? Bitcoin trading and deposits were predicted to become an important product for brokers.
IPO bubble popped? Our writers predicted more IPOs emerging from the industry. While IPO talk was consistent, it remained just that, talk, as no major brokers were able to pull off an IPO during Also not taking place were forecasts of restrictions on cross-border financial passporting in the EU through MiFID regulation. In regards to margin usage, it was predicted that regulators such as those in the UK and Australia may apply stricter limitations to leverage.
Although some jurisdictions like Israel and Russia created forex frameworks including limitations on leverage, nothing new was even proposed in Europe and Australia. My non-existent forecast for which I may recycle for was the establishment of a cross-broker central clearing system for US retail brokers. Some predictions that are still a work in progress.
Regulations due to FX rate manipulation: With investigations still ongoing even after the initial round of fines , there is talk of new guidelines to prevent rate fixing, but it is still up in the air. Summary Both the quantitative and technical forecasts agree completely. Next week, we will review how these forecasts performed.
Adam Lemon. Adam trades Forex, stocks and other instruments in his own account. He has previously worked within financial markets over a year period, including 6 years with Merrill Lynch. Learn more from Adam in his free lessons at FX Academy. Also on DailyForex. Did you like what you read? Let us know what you think!
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