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.
It will be also interesting to see how this affects the US market and how well the economy will react overseas. With the growing interest rate, more and more people have done a rollover to gold ira or considered some form of alternative investments such as a rollover to bitcoin.
What Is The Current Situation In The CryptoCurrency Market and What Are The Best CryptoCurrencies To Invest?
The total market capitalization of all cryptocurrencies is now almost 140 billion US dollars – for comparison: In January 2017, we were still at 16 billion US dollars.
And while media awareness of cryptocurrency is rising sharply, there is still relatively little talk about the revolutionary technology behind the new currencies called Blockchain. The blockchain is a digital booking system that accurately tracks all transactions and saves every change as a “block”. By linking the individual blocks, each containing the information of the previous block, creates an infinitely long “chain”, from which the name “Blockchain” is derived. The blockchain is also distributed decentrally on all integrated computers worldwide, which is why manipulation is considered almost impossible
For a better explanation of what blockchain is watch the video here:
What Are The Big Corporation In The Cryptocurrency Game and Which Should You Invest In?
Corporations such as Apple, Google and especially IBM and Microsoft, as well as large parts of the banking industry, have been working for some time in blockchains.
In addition to the big players, there are also many innovative, new concepts based purely on blockchain. A good example of this is the Sia cloud. Sia provides a completely decentralized cloud solution, which comes along with the increased security level and very attractive pricing. Compared to the cloud solutions Amazon S3 ($ 115 per month), Google Cloud ($ 100 per month) and Microsoft Azure ($ 120 per month), the five terabytes of storage space in this case costs just $ 5 monthly.
The complexity of the shares depends first of all heavily on the broker used. Since not all blockchain stocks list, we have had good experiences with the free brokers from Comdirect and ING-Diba.
The topic Blockchain shares is currently divided into two areas from our point of view:
Startups or specialized investment holdings that are currently low capitalized:
Bitcoin Group SE is a holding company focused on innovative and disruptive business models and technologies in the areas of cryptocurrency and blockchain. Bitcoin Group SE holds 100 percent of the shares in Bitcoin Deutschland AG. It is Germany’s only authorized trading center for the digital currency Bitcoin.
TIO Networks delivers cloud-based services that enable customers to pay bills immediately through a variety of payment channels. They are positioning themselves above all for the LMI user (low to moderate income) in underbank markets. Currently you have completed the phase of Softgate system integration. This creates three new business units internally: Biller and Agent Solutions (process payments), Telecom Solutions (service providers), Consumer Financial Solutions (B2C)
The British Coinsilium Group invests in blockchain-based technologies, with a particular focus on fintech innovation. Coinsilium was the world’s first blockchain company with an IPO (initial public offering). Market capitalization currently stands at $ 4.5 million.
Digitalx is currently launching a cooperation with the Latin American partner Telefonica. Through this collaboration, it is now possible to use a transfer network from the US and Canada to countries such as Argentina and Uruguay with the Blockchain-based money transfer app “Airpocket”. This addresses both the large Latin American workers’ groups that want to send money home, as well as around 65 percent of Latin Americans who say they want to do more transactions on their mobile phone, according to an e-marketers survey. This was the highest percentage of all regions studied. Since Digitalx is still relatively young, the market cap is just 8.48 million US dollars.
First Bitcoin Capital participates in cryptocurrency-based companies and concepts such as Coinqx, Bitessentials, Bitclasstravel, Bitcoin.cc and Bitcoin ATM. The current market capitalization is around $ 121 million. Get more Bitcoin news by business24-7.ae here
Global Arena Holding specializes in holdings and patents in the blockchain crypto area. At present, the holding company is working on the application of blockchain technology to ATMs. Another project is smart contracts in wills. The blockchain triggers a chain of processes that greatly simplify many areas, such as checking for death and subsequent wealth distribution. The market cap is 13.63 million US dollars.
Large corporations rely more and more on blockchain and here is why:
So with that being said in which Cryptocurrency should you invest from an investors perspective? I found this article sorting out the best cryptocurrencies of 2017 worth to invest.
What Are The Best Cryptocurrencies to Invest In 2018?
There has been lots of publicity lately about what will be the best cryptocurrency to invest in 2018. We have gathered all of the information and put together a list of the most promising currencies we think will become the top options to invest in. We will publish our list in mid-June so stay tuned. Before our publication, you can watch the video below
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.
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.