This must be taken into account in our investments

At the June meeting, the European Central Bank (ECB) announced that it will end net asset purchases as of July 1 and that it intends to increase interest rates at 25 basis points at the July meeting.

But there is more. Official interest rates are expected to rise again in September. All this will depend on the update of the medium-term inflation outlook. If the medium-term inflation outlook remains the same or deteriorates, the monetary authority warns that a higher increase will be appropriate at the September meeting.

At the same time, despite the slowdown in purchases, it is expected continue to fully reinvest the principal of the securities acquired maturing for an extended period after the date on which the ECB’s official interest rates begin to rise and, in any case, for as long as is necessary to maintain ample liquidity conditions.

The rise has not occurred, but the market discounts expectations so We can now begin to gauge what this movement means for our investment portfolio.

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Venezuela will sell gold, a good investment?

Recently the president of Venezuela, Nicolás Maduro, has announced that he has a small gold bullion savings plan for Venezuelan pensioners, workers and housewives. The idea is to offer a savings instrument that retains its value despite the hyperinflation it is experiencing in recent times.

When I read it, I thought that the Venezuelan government was finally putting into practice something appropriate to end hyperinflation and give credibility to the currency, even if it was by the most brutal way of indexing it to gold. But when one investigates more deeply the conditions in which said gold is offered, he realizes that it is nothing but one more of the same in the list of Venezuelan financial excesses.

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Award for the Best Trading Program in Europe

“Global Business and Finance Awards” In its 8th edition, the jury of the “Global Business and Finance Awards” The award has failed among all the candidates, granting recognition to the innovative Traders Business School program, an online course platform that seeks to democratize access to Trading for thousands of people. The Global Business & Finance … Read more

What does the euro vs. dollar parity mean and what can we expect in the coming months

The euro is close to parity against the dollar for the first time in 20 years, compared with around $1.22 in June last year and far from $1.60 when the United States entered the crisis. In fact, we have seen how the EUR/USD cross falls and rebounds from new cycle lows around $1.0070 on Friday.

The dollar strengthened on risk aversion sentiment because concerns about Russia’s war in Ukraine, rising inflation, supply chain issues, slowing growth and tightening monetary policy led investors to turn to traditional safe-haven assets and the dollar is well positioned.

And it is that to date there is considerable divergence between the Fed and the ECB. Fed Chairman Jerome Powell said the central bank will not stop raising rates until inflation falls to a manageable level. He reiterated his goal of bringing inflation closer to the 2% target set by the Fed. However, the European Central Bank has not raised interest rates, despite the high rate of inflation in the EU.

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What is Forex?

Currency Market: Forex The foreign exchange market has different names by which it is known, such as Forex, Forex Retail, FX or Spot FX. The Forex market is the largest financial market in the world where transactions are made worth 4 trillion dollars a day. The New York Stock Exchange, which is the most famous … Read more

Be careful with the debt of emerging countries: curves are coming

Debt and currency crises in emerging countries tend to surface when the Federal Reserve raises interest rates. Their debt is more vulnerable than that of developed countries because they are less capitalized, have less diversified sources of financing, less stable inflation rates, and are less easily convertible into debt. In the emerging world, sovereign risk … Read more

How to create a Trading System in 6 steps

Create a good trading system It requires many hours of research and a lot of analysis. Organizing and documenting the process will help you create structure in the process of designing and developing automated or semi-automated systems. As I was saying, testing a trading system can take many hours, especially it can take a long … Read more