Mueller Grand Jury Report Destroys Dollar and Leaves Sterling Struggling

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Mueller Grand Jury Report Destroys Dollar and Leaves Sterling Struggling

After a recent report that U.S. Special Counsel representative Robert Mueller has chosen to impanel a jury for his investigation into Russia’s potential interference in the latest elections, the dollar value has seen significant damage. The possibility that there may have been some collusion within the Trump campaign has sent currency values spiraling, and the dip in the greenback further supported an ongoing experience of weak economic data, which left the Bloomberg index lower by under 0.,1%.

The greenback has now reached its lowest point since the middle of June, thanks to the shaky results of the Mueller update. Importantly, the 10-year Treasury yield also saw a significant fall to its lowest state during the same month.

The Rise and Fall of USD and GBP

Previously, the dollars saw an increase to its highest rate in six months against the British pound, which has also struggled to gain any momentum in recent months. Recently, the pound hit its lowest point since November against the Europe, following the decision to keep policies on hold and reduce growth forecasts for the rest of the year. The sale of British currency spilled over into other currency pairs, which helped to boost the demand for the Swiss franc and Yen.

Currently, GBP/USD is trading at a rate 0.6% lower, at around 1.3142 vs 1.3113 which was seen after the stop-loss sell orders moved below the rate of 1.3150. Ahead of the decision made by the Bank of England, the pound had recently achieved an 11-month high against USD currency after the UK services PMI came out ahead of estimates. Now, the pound is down again, and paced by a loss of more than 1% against yen.

Interestingly, growth in the euro has also subsided after setting fresh highs for the session, gaining significantly despite the pound selling problem. Both the Swiss franc and the yen gained against the Euro and USD as cross trades continued to unwind.

The Latest Updates on the Dollar Value

Following the disappointing results of the ISM composite index (non-manufacturing), the dollar fell, though a Bloomberg survey calls for gains of around 180k for the upcoming jobs report. June data suggested that about 22k non-farm jobs were introduced into the mix.

JPY/USD also fell to a fresh low at around 109.86, dropping beneath the interim low point at 109.95 and falling back on a previous rebound. However, residual bids cushioned the drop to a point of 10.9.90. Resistance should be defined by the peak of 110.98 reported on Wednesday.

The latest reports suggest that the EUR/USD cross is trading at around 1.1874, pushing to a session high at 1.1893, seen when demand for EUR/GBP helped to lift the cross pair at an earlier stage. EUR/GBP traded close to the daily high of 0.9049. Additionally, EUR/USD fell to a low at around 1.1831, before bids underneath 1.1830 began to cushion the drop, according to European traders who asked to remain unidentified.

The ISM index (non-manufacturing) for the United States saw a decline of 53.9 vs estimates for a drop to only 59.6 – which only contributes to the overwhelmingly disappointing tone of the latest economic data.

Plan Ahead For Correct Documents

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AS WE GET closer to the holiday season, many foreign nationals living in the United States will be travelling abroad. For any such foreign nationals, it is important to make sure you have the correct documents in place before starting on your travels. Depending on your situation, this can mean planning ahead and making appointments with Embassy’s or even pre-submitting documents for review.

One of the key things to remember is that a nonimmigrant status and nonimmigrant visa are not the same thing. A visa is a stamp that is put in your passport at a US embassy or consulate abroad that allows you to travel to a port of entry (such as an airport) in the US and request admission. A visa is only for the purpose of entering the US, not for the purpose of staying in the country. Your lawful status is the classification and duration of authorized stay in that classification. Your status in the US is valid up to the expiration date stated on the I-94 so long as you do not do anything to violate your status. I-94’s are now automated and travelers are no longer given paper I-94’s at the time of entry. You can look up your I-94 online with the US Customs and Border Protection.

Because a visa is used for the purpose of seeking admission to the country, it does not have to remain valid while in the US. Once you have entered the US on a visa your I-94 is what determines the duration of your stay in a particular classification. This means that you could have a B visa that is valid for 10 years but it does not mean that you can stay in the US consecutively for 10 years. When you enter the US on the B visa your I-94 will indication how long you can stay in the country.

For example, while already in the US studying in F-1 (student) status, you applied to change your status from F-1to H-1B (specialty occupation worker). At the time your H-1B was approved, you likely received an approval notice which has the new I-94 attached at the bottom indicating the validity period. Having this approved change of status does not meen that you have an H-1B visa; you are in the US in H-1B status and as long as you maintain your status and do not do anything to violate the status, you can remain in H-1B status for the duration of the stay indicated on the I-94. However, the first time you leave the US, you will generally need to go to the US embassy or consulate of your home country to get an H-1B visa before you can re-enter the US. So don’t assume that because your current I-94 is valid for another year, you’ll be able to re-enter the US without a valid visa. With some exceptions you generally get a new I-94 each time you enter the US. Also, do not think that because you were able to leave the US, you will be able to get back in.

The process of getting a visa varies by US embassy or consulate so it is best to check the individual location’s procedures. Generally, you will need to submit a DS-160 form online, pay the visa fee, make an appointment online and then attend the interview. Depending on the type of visa you need, the procedures and required documents will differ. For some types of visas such as an E visa, embassies and consulates require that you pre-submit documents and go through an initial review before you can even make your appointment so it can be a lengthy process. Many embassies and consulates do not accept visa applications from third country nationals. This means that if you are a British national, you may not be able to get your visa in Japan or France, for example; you will need to go to the embassy in the United Kingdom.

Another thing to keep in mind is that many embassies and consulates get busy during the holidays as it is peak travel time so make sure to book your appointment early to be sure that you can get the date within your anticipated travel time. Also remember that after you attend your interview, assuming that all goes well, it will take a few days before you can get your passport with the visa in it back so make sure to allow for extra time after your interview.

Once you are back in the US, go online and look up your new I-94 to be sure of your new period of authorized stay.

If you are a green card holder, although you do not need a visa to re-enter, make sure that you have your green card and that it is still valid during your travel times. If your card will expire while abroad you will need to take steps to ensure that you renew it and otherwise determine that you don’t have any issues returning to the US.

The procedures described above are general procedures and there are many exceptions, so be sure to consult with an attorney to make sure you will be able to re-enter the US as you come back from holiday.

Exploring the Latest Forex Trading Scandal

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Exploring the Latest Forex Trading Scandal

Every day, the global foreign-exchange markets oversee the exchange of trillions of dollars’ worth of shares. Many of the world’s major currencies, including dollars, and euros, are traded in an environment that’s under-regulated, and often dominated by a specific group of elite banking professionals.

Lately, whispers around the security and performance of the foreign-exchange market have begun to grow louder, after regulators in Switzerland, Britain, and the United States have begun to accuse various international banks of manipulating the rates for specific exchange currencies. According to the unhappy regulators, a total of $3.4 billion in fines have been launched against financial institutions, including the Royal Bank of Scotland, UBS, HSBC, JP Morgan Chase, and Citibank.

JPMorgan Chase & Co. announced that they received a fine of around $400 million, while Citigroup Inc. claimed that they were given a charge of $600 million. Information about the fines for the remaining three UK banks is uncertain.

Outlining the Details of the Scandal

The US, Switzerland, and Britain regulatory bodies researched the performance of the banks mentioned above, and found that each had failed to offer appropriate training for foreign currency traders in their employment. The result of this lack of training meant that traders were able to start forming groups that could manipulate the market based on shared financial data.

Regulators believed that the accused manipulation of the market took place between the first of January in 2008, and the 15th of October 2013. The current bodies involved include:

  • The US Department of Justice
  • The US Commodity Futures Trading Commission
  • The Swiss Financial Market Supervisory Authority
  • The Switzerland Competition Commission
  • The UK Serious Fraud Office
  • The UK Financial Conduct Authority (FCA)
  • The Hong Kong Monetary Authority

The Dangers of Market Manipulation

The scandal touched on the Bank of England early in 2017, when the group chose to suspend an employee and begin a company-wide investigation examining countless emails and chat room records, alongside hours of telephone recordings for any sign of rate discrepancies. According to the results of the investigation, the chief foreign currency dealer for the bank of England was aware that bank traders were sharing information since at least the 16th of May 2008. Though he had concerns that there may be signs of “collusive behavior” as of November 28th 2012, the employee did not inform any of his superiors.

There’s a chance that the scandal might grow even larger in coming months, as investigations are launched into the potential manipulation of the LIBOR rate, which contributed to billions in potential fines for any bank involved. Because an evaluation of the Forex trading environment requires a thorough investigation into the integrity of the markets overall, there could be serious repercussions in the pipeline.

According to the finance professor for the University of Notre Dame, Jeffrey Bergstrand, continued development into the case could mean that stronger regulations are put in place for the trading market. However, such a change could be very difficult to implement. After all, we’d need to set up a strategy for coordination around the world.

The British Inflation Rate Slips for the First Time in 8 Years

The British Inflation Rate Slips for the First Time in 8 Years

The rate of inflation in Britain slipped below the official target of 2% during January 2017, for the first time since 2009. The fall means that it’s unlikely the bank of England will make any effort to raise interest rates again for the time being.

Official figures that were released during August showed that the consumer prices for interest were up by 1.9% in the year leading up to January, and down 2% from the rate in December. Experts predict that the drop may be a result of retailers choosing to slash their prices on tobacco, alcohol, and furniture-based products.

Assessing the Current Marketplace

The UK marketplace has been in a state of flux recently, following the Brexit results. According to the chief economist at “Markit”, Chris Williamson, the strong economic growth of the country, combined with the falling price of inflation has created a kind of “Goldilocks” set of circumstances.

Financial experts suggest that the policymakers working for the bank of England should be able to keep pushing the country forwards for a little longer thanks to low interest rates – driving a faster and more sustainable recovery for the economy.

Not so long ago, the bank suggested that their key interest rate would remain stuck at the record low of around 0.5% until joblessness throughout the country achieved a more solid solution. Once that unemployment threshold began to grow closer, the governor of the bank Mark Carney chose to update the forward guidance to broaden the range of indicators that would need to be considered before interest rates are raised.

For now, the low inflation numbers should ensure that the bank has all the freedom and versatility it needs to ensure the UK economy has room to thrive and strengthen before any of the current rates are changed.

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