Archive for Financial News – Page 311

If all the vehicles in the world were to convert to electric, would it be quieter?

By Erica D. Walker, Brown University 

Curious Kids is a series for children of all ages. If you have a question you’d like an expert to answer, send it to [email protected].


If all of the vehicles in the world were to convert to electric, would it be quieter? – Joseph, age 10, Chatham, New Jersey


If everyone everywhere received a free electric vehicle at the same time – and owners were required to travel at really slow speeds across well-maintained roads – the world would sound different.

But that doesn’t mean it would be quieter.

People can have different feelings about the same sound. As the founder of Community Noise Lab at Brown University’s School of Public Health, I am particularly interested in how we, as humans, decide what is a sound and what is a noise – which is what we call unwanted sounds. We perceive the sounds that we experience in our daily lives in many ways, from quiet to loud. And they can make us feel happy, angry or many things in between.

These feelings can affect our health by relaxing or stressing us. Studies also show that chronic exposure to noise can affect your sleep and hearing and contribute to health problems like heart disease.

How loud are cars?

We know that gasoline-powered cars make a lot of noise, especially on highways where they can travel at high speeds. In 1981, the U.S. Environmental Protection Agency estimated that nearly 100 million people nationwide were exposed to traffic noise every year that was loud enough to be harmful to their health. At the time, this was about 50% of the U.S. population.

Many factors influence how loud a car is on the road, including its design, how fast it travels and physical road conditions. On average, cars moving at around 30 mph on local roads will produce sound levels ranging from 33 to 69 decibels. That’s the range between a quiet library and a loud dishwasher.

This video compares the decibel levels produced by loud, moderate and quiet dishwashers.

For cars traveling at typical speeds on the interstate, which is around 70 mph, sound levels range up to 89 decibels. That’s equivalent to two people shouting their conversation at each other.

Electric and hybrid gas/electric cars emit very low sounds at low speeds because they don’t have internal combustion engines producing noise and vibrations. To ensure that pedestrians will hear electric and hybrid vehicles coming, the National Highway Traffic Safety Administration requires these vehicles to emit sounds ranging from 43 to 64 decibels when they are moving at less than 18.6 mph. Each manufacturer uses its own warning sounds.

At high speeds, there may not be much difference between gas-powered cars and EVs or hybrids. That’s because other factors like tire and wind noise become louder as cars move faster.

Urban noise is a serious health threat worldwide, and the main source is motor vehicles.

Quieter streets for everyone

Infrastructure also contributes to street noise. Cracks, depressions and holes in roads can increase sound levels as cars travel across them.

Lower-income communities tend to have poorer-quality streets and highways. So failing to fix roads could drown out any improvements in a community’s soundscape from EVs, quite literally.

Another way to reduce traffic noise would be to build more bike lanes and paths in less-wealthy communities, which often lack them, and encourage people to substitute this cheaper, healthier, cleaner and quieter mode of transportation when they can.

Electric vehicles are still out of reach for many people because most models cost more than gas-powered cars. So in reality, the benefits of switching to electric-powered vehicles – such as lower fuel costs, cleaner air and somewhat quieter streets – are going now mainly to people who live in wealthier communities and can afford EVs.

That inequitable distribution of benefits is what the EPA calls an environmental injustice: a situation in which everyone doesn’t have the same degree of protection from environmental and health hazards. To share those benefits more equally, electric vehicles will have to become as affordable as gas-powered versions.

Many people think of noise as a nuisance that’s less urgent than other, more pressing environmental issues like air and water pollution. As a result, governments fail to plan for noise, measure it, mitigate it or regulate it in any meaningful way.

In fact, noise is a significant environmental stressor that negatively affects everyone’s health and well-being, especially those who are most vulnerable. At Community Noise Lab, we aim to shed light on the public health implications of noise, argue for more holistic measurements of sound, and study noise together with other environmental pollutants like water and air pollution, working alongside vulnerable communities across the United States.


Hello, curious kids! Do you have a question you’d like an expert to answer? Ask an adult to send your question to [email protected]. Please tell us your name, age and the city where you live.

And since curiosity has no age limit – adults, let us know what you’re wondering, too. We won’t be able to answer every question, but we will do our best.The Conversation

About the Author:

Erica D. Walker, Assistant Professor of Epidemiology, Brown University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

What are automotive ‘over-the-air’ updates? A marketing professor explains

By Vivek Astvansh, Indiana University 

Whenever automakers discover that a vehicle has a defect or does not comply with U.S. laws, they must notify the National Highway Traffic Safety Administration and mail a notice to each customer who owns or leases the affected vehicles. Automakers must also recall those cars, trucks or SUVs – which means they have to fix the defect across the entire fleet.

People with recalled vehicles usually have to schedule a visit to an authorized dealership, where a mechanic repairs the car.

But vehicles are increasingly high-tech contraptions. Although most recalls still require the replacement or repair of auto parts, such as air bags or brakes, a growing number of issues are resolved without any help from a mechanic.

All they require is an “over-the-air update.” That’s the technical term for what happens when you update any software program used by a device, whether’s it’s a smartphone or a sedan.

Over-the-air updates are especially common for vehicles that run fully or partially on electricity instead of gasoline or another fuel. These digital recalls require little or no effort. For example, Tesla regularly fixes its cars by updating its software. Its drivers often don’t have to do a thing. In other cases, a Tesla owner simply has to tap a few buttons on the car’s touchscreen.

According to the law, it doesn’t matter if safety-related fixes demand a software upgrade or a trip to the dealership. Either way, notifying the National Highway Traffic Safety Administration and all affected drivers is mandatory.

Why over-the-air updates matter

Electric vehicle sales nearly doubled from about 300,000 in 2020 to more than 600,000 in 2021. EV sales rose another 76% in first quarter of 2022 even as sales of all new vehicles dropped by 15.7%.

U.S. EV sales could be on the verge of far more growth, which would make over-the-air updates increasingly common. But drivers and investors are raising an array of safety concerns that could put the brakes on the EV market’s expansion.

Serious problems have included electric vehicles failing to start, losing power and catching fire because of battery defects.

Musk objects to the word ‘recall’

Tesla has pushed harder than its competitors to rely primarily on over-the-air updates to fix problems with its electric vehicles. Its CEO, Elon Musk, has for years publicly questioned the wisdom of calling over-the-air updates “recalls.”

In some cases, Tesla has conducted over-the-air updates to resolve safety defects without notifying the National Highway Traffic Safety Administration or Tesla owners that a recall was underway.

Because that’s against the law, the agency has ordered Tesla to provide those details.

Tesla has used over-the-air updates to resolve, for example, issues with its windshield wipers and seat belt chimes. It has also used over-the-air updates to address problems with its partially automated driving systems. Those features are the subject of a government investigation because of a spate of crashes with parked emergency vehicles in which first responders were using warning signs, such as flashing lights or flares.The Conversation

About the Author:

Vivek Astvansh, Professor of Marketing and Data Science, Indiana University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

Ichimoku Cloud Analysis 04.08.2022 (GBPUSD, USDCHF, USDJPY)

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is correcting inside the bullish channel. The instrument is currently moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.2130 and then resume moving upwards to reach 1.2435. Another signal in favour of a further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1.2020. In this case, the pair may continue falling towards 1.1925.

GBPUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is no longer moving within the bullish channel. The instrument is currently moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s downside border at 0.9585 and then resume moving upwards to reach 0.9795. Another signal in favour of a further uptrend will be a rebound from the descending channel’s upside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 0.9485. In this case, the pair may continue falling towards 0.9390. To confirm a further uptrend, the price must break the cloud’s upside and fix above 0.9657.

USDCHF
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is rebounding from Tenkan-Sen and Kijun-Sen. The instrument is currently moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 133.10 and then resume moving upwards to reach 137.60. Another signal in favour of a further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 131.95. In this case, the pair may continue falling towards 130.90.

USDJPY

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Murrey Math Lines 04.08.2022 (USDCHF, GOLD)

Article By RoboForex.com

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, USDCHF is still trading below the 200-day Moving Average to indicate a possible descending tendency. In this case, the pair is expected to test 2/8, break it, and then continue falling towards the support at 1/8. However, this scenario may be cancelled if the price breaks the resistance at 3/8 to the upside. After that, the instrument may move upwards to reach 4/8.

USDCHFH4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards.

USDCHF_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, after breaking the 200-day Moving Average, XAUUSD is also trading above it, thus indicating an ascending tendency. In this case, the price is expected to test 5/8, break it, and then continue moving upwards to reach the resistance at 6/8. However, this scenario may no longer be valid if the price breaks the support at 4/8 to the downside. After that, the instrument may reverse and resume falling to return to 3/8.

USDCAD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue its growth.

USDCAD_M15

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

The Analytical Overview of the Main Currency Pairs on 2022.08.04

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.0164
  • Prev Close: 1.0168
  • % chg. over the last day: +0.04%

The US Dollar Index rose on Wednesday after data showed an unexpected recovery in US PMI services in July, which provided further support for the currency after hawkish comments from Federal Reserve officials on Tuesday. With the US Federal Reserve tightening monetary policy, the US dollar is both a source of growth and a safe haven for investors, especially during a war between Ukraine and Russia and new geopolitical tensions between China and Taiwan.

Trading recommendations
  • Support levels: 1.0112, 1.0035, 1.0000
  • Resistance levels: 1.0179, 1.0264, 1.0284, 1.0365, 1.0415, 1.050

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is still forming a wide volatile balance, but buyers’ pressure has changed to sellers’ initiative. The MACD indicator has become negative. Under such market conditions, buy trades are best sought on intraday time frames from the support level of 1.0112. Sell trades can be considered from the resistance level of 1.0179, but only after additional confirmation and only with short targets.

Alternative scenario: if the price breaks down through the 1.0112 support level and fixes below, the downtrend will likely resume.

EUR/USD
News feed for 2022.08.04:
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
  • – US FOMC Member Mester Speaks (m/m) at 19:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2164
  • Prev Close: 1.2146
  • % chg. over the last day: -0.15%

The Bank of England is preparing for its biggest interest rate hike in 27 years because of rising inflation. The BoE is expected to raise interest rates by 50 basis points today, the most considerable increase since 1995. The probability of such a scenario is 70%. So, if 50 basis points raise the rate, the cost of borrowing will rise to 1.75%. This scenario is likely already priced in, and the most important event will be the speech of the governor of the Bank of England, Andrew Bailey. He will voice his views on further easing monetary policy and how quickly the Bank of England will reduce its balance sheet.

Trading recommendations
  • Support levels: 1.2114, 1.2114, 1.2063, 1.1907, 1.1803
  • Resistance levels: 1.2167, 1.2209, 1.2294

From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is bullish. The price is now balanced and trading between the moving averages. The MACD indicator is in the negative zone, and there is an initiative from the sellers. Under such market conditions, it is better to look for buy trades on the intraday time frames from the support level of 1.2114, but only with confirmation since the level was tested yesterday. Sell trades can be considered from the resistance level of 1.2167 or 1.2209, but only after additional confirmation and with short targets.

Alternative scenario: if the price breaks down through the 1.2063 support level and fixes below, the downtrend will likely resume.

GBP/USD
News feed for 2022.08.04:
  • – UK Construction PMI (m/m) at 11:30 (GMT+3);
  • – UK BoE Inflation Report (m/m) at 14:00 (GMT+3);
  • – UK BoE Interest Rate Decision (m/m) at 14:00 (GMT+3);
  • – UK BoE Monetary Policy Statement (m/m) at 14:00 (GMT+3);
  • – UK BoE Gov Bailey Speaks at 14:30 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 133.14
  • Prev Close: 133.85
  • % chg. over the last day: +0.53%

The USD/JPY currency pair is returning to an upward movement amid renewed dollar growth. Fundamentally, the difference in the interest rates and diametrically opposite monetary policies between the United States and Japan contributes to the growth of quotes. Most likely, no significant changes are planned before the end of the year.

Trading recommendations
  • Support levels: 132.12, 131.37, 130.85
  • Resistance levels: 135.29, 136.03, 137.11

From the technical point of view, the medium-term trend on the USD/JPY currency pair is bearish. But in the last two trading sessions, the dollar is getting stronger, and now the price is trading between the moving averages. The MACD indicator is in the positive zone, and buyer pressure is increasing. Under such market conditions, buy trades can be sought from the support level of 132.12, but with additional confirmation. Resistance levels of 135.29 may be considered for sell deals, but only with additional confirmation and short targets.

Alternative scenario: If the price fixes above 135.29, the uptrend will likely resume.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2874
  • Prev Close: 1.2840
  • % chg. over the last day: -0.26%

The Canadian dollar is a commodity currency that highly depends on the US Dollar Index and oil prices. Oil prices decreased by 3% yesterday after an unexpected 4.5 million barrels increase in inventories last week (forecast +600K), while the US Dollar Index increased on rising geopolitical tensions in Asia. As a result, the USD/CAD quotes demonstrated growth, but the end of the trading day was for the Canadian. Investors should consider the fact that the interest rates of the Bank of Canada and the US Federal Reserve are now at the same level. This means traders should not expect medium-term trends in this currency pair.

Trading recommendations
  • Support levels: 1.2803, 1.2786
  • Resistance levels: 1.2880, 1.2929, 1.3006, 1.3085, 1.3154

In terms of technical analysis, the USD/CAD currency pair trend is bearish. At the moment, the price is forming a wide balance. The MACD indicator became positive, and there was an initiative of buyers. Under such market conditions, it is better to consider sell deals from the resistance level of 1.2880, but with confirmation. Buy trades should be considered on the lower time frames from the support level of 1.2803 or 1.2789, but only with confirmation and short targets.

Alternative scenario: if the price breaks out and consolidates above the 1.2929 resistance level, the uptrend will likely resume.

USD/CAD
There is no news feed for today.

By JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Oil falls amid an unexpected rise in reserves. China is creating a blockade on Taiwan under the guise of military exercises

By JustForex

Fed officials reiterated Wednesday their determination to curb high inflation. One official noted that a half-percent hike in the Central Bank’s key interest rate next month may be enough to achieve that goal.

In July, the US services sector unexpectedly rebounded due to a strong increase in orders, while supply bottlenecks and price pressures eased. This confirmed the view of the Fed representatives that the economy is not in recession, despite the reduction in production in the first half of the year.

As the stock market closed yesterday, the Dow Jones Index (US30) increased by 1.29%, and the S&P 500 Index (US500) added 1.56%. The NASDAQ Technology Index (US100) jumped by 2.59%.

PayPal (PYPL) was one of the day’s leaders, rising more than 9% after reporting better-than-expected results and announcing a $15 billion share buyback program. The fintech giant also said Elliott Investment Management had invested $2 billion in the company as the activist shareholder hopes to encourage PayPal to explore plans to return capital to shareholders. Moderna (MRNA) shares rose nearly 16% after a report showed better-than-expected second-quarter results thanks to higher sales of the Covid-19 vaccine. Online travel agency Booking Holdings Inc (BKNG) reported an increase in quarterly revenue Wednesday as a surge in bookings amid strong demand for summer travel led to a faster-than-expected recovery.

Alibaba (BABA), Toyota Motor (TM), Amgen (AMGN), ConocoPhillips (COP), Vertex (VRTX), and others report today.

Stock markets in Europe were mostly up on Wednesday. German DAX (DE30) gained 1.03%, French CAC 40 (FR40) jumped by 0.97%, Spanish IBEX 35 (ES35) added 0.56%, British FTSE 100 (UK100) gained 0.13%.

According to Eurostat, Eurozone producer inflation rose another 1.1% in June 2022. Eurozone retail sales showed a decline of 1.2%, with a forecast of rising of 0.4%. This is negative data for the euro. On the other hand, the PMI of business activity in the service sector in Europe has noticeably increased. Still, analysts attribute the growth of the index to the increase in demand for services during the summer season.

Crude oil inventories unexpectedly rose by 4.5 million barrels last week, compared to analysts’ forecast of 600,000 barrels. The OPEC+ group said it would raise its oil production target by just 100,000 BPD. Oil prices decreased by 3% amid the data yesterday.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) gained 0.53%, Hong Kong’s Hang Seng (HK50) added 0.40%, and Australia’s S&P/ASX 200 (AU200) was down by 0.32%.

China launched an unprecedented live-fire military exercise in six areas around Taiwan on Thursday, a day after US House Speaker Nancy Pelosi visited the island. Taiwanese officials said the exercises violate United Nations rules, invade Taiwan’s territorial space, and pose a direct challenge to free air and sea navigation. China is conducting the drills in the busiest international waterways and air routes. A Taiwanese cabinet spokesman, expressing strong condemnation of the exercises, also said the websites of the defense ministry, foreign ministry, and presidential office had been attacked by hackers.

S&P 500 (F) (US500) 4,155.17 +63.98 (+1.56%)

Dow Jones (US30) 32,812.50 +416.33 (+1.29%)

DAX (DE40) 13,587.56 +138.36 (+1.03%)

FTSE 100 (UK100) 7,445.68 +36.57 (+0.49%)

USD Index 106.38 +0.14 (+0.13%)

Important events for today:
  • – UK Construction PMI (m/m) at 11:30 (GMT+3);
  • – UK BoE Inflation Report (m/m) at 14:00 (GMT+3);
  • – UK BoE Interest Rate Decision (m/m) at 14:00 (GMT+3);
  • – UK BoE Monetary Policy Statement (m/m) at 14:00 (GMT+3);
  • – UK BoE Gov Bailey Speaks at 14:30 (GMT+3);
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
  • – GUS Natural Gas Storage (w/w) at 17:30 (GMT+3);
  • – US FOMC Member Mester Speaks (m/m) at 19:00 (GMT+3).

By JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

BOE Decision: What you need to know

By ForexTime

When is it due?

  • The Bank of England’s (BOE) policy statement is due to be released today (Thursday, August 4th) at 11:00 AM GMT
  • Half an hour later, BOE Governor Andrew Bailey is due to hold a press conference at 11:30 AM GMT

 

The BOE is widely expected to raise the UK bank rate by 50 basis points (bps) today.

A 50bps hike today would mark the BOE’s largest hike since 1995.

Markets are currently forecasting an 80% chance that the BOE will trigger a larger-than-usual hike, given that a 50bps move would be double the size of its previous four hikes.

 

The BOE has been hiking its benchmark rates since the end of last year:

  • December: 15bps
  • February: 25bps
  • March: 25bps
  • May: 25bps
  • June: 25bps
  • August: 50bps?

TOTAL: 165bps? (to be determined after today’s decision)

 

Why is the BOE in a rush to raise interest rates?

One word: inflation.

The UK consumer price index (CPI), which measures changes in the prices of a basket of goods and services, has risen by 9.4% in June 2022 compared to June 2021.

That’s the highest year-on-year advance for the headline CPI since February 1982!

Given that a central bank’s primary method for cooling inflationary pressures is by raising interest rates, no surprise then that the BOE has sent its bank rate to 1.25% (as of last month), which could go up to 1.75% after today’s decision.

 

What happens next?

As things stand, markets are forecasting that the BOE can only send its benchmark rate higher by another 125bps to 3% after today’s decision (assuming today’s hike is indeed 50bps), before having to reverse course and lower rates in Q2 2023.

Thus, it appears that the BOE is already more than halfway done in this ongoing rate hike cycle.

The reason for this about-turn is because the BOE may be concerned about sending the UK economy deep into a recession. Already back in May earlier this year, the central bank warned of the prospects of a UK recession in 2023.

And with inflation set to reach double-digits in Q4 this year (well above the BOE’s 2% target), along with rates moving higher, such a combo could break the UK economy (i.e. a recession).

 

How would this impact the Pound?

So far this year, the Pound has already weakened by 10% against the US dollar (remember the good ol days of GBPUSD being above 1.30?).

More recently, GBPUSD a.k.a. “cable” hasn’t been able to keep its head above its 50-day simple moving average (SMA).

  • If the BOE triggers a smaller-than-expected 25bps hike today, that could result further declines for GBPUSD.
  • If the BOE triggers a massive 75bps hike today, that could shock GBPUSD northwards.
  • If Governor Bailey can convince markets (and that’s the key part: markets need to believe the BOE’s message) that the UK economy can indeed withstand interest rates rising past 3% by Q1 2023, that could also translate into further strength for Sterling.
  • If Governor Bailey suggests that the BOE will have to slow down its intended rate hikes, for fear of sending the UK economy into a recession, that could see the Pound move lower.

Expect a combination of the above-listed scenarios.

 

Key support and resistance levels for GBPUSD

The BOE’s latest policy signals are set to determine whether GBPUSD will be kept above its 50-day SMA, or sent below that key technical indicator.

  • Immediate resistance above 50-day SMA at recent cycle peak of 1.22934
  • Stronger resistance can be seen around 1.24 (end-April lows/mid-June high)

 

  • Support: 1.200 (psychologically-important level) / 1.19335 mid-June trough
  • Stronger support set to arrive at 1.1760 – lowest since the onset of the pandemic

 

Overall, I expect that GBPUSD may do no better than 1.24 for the immediate term, barring a shockingly-hawkish tone out of the BOE today, and assuming markets can buy into such an aggressive messaging.

In other words, GBPUSD is likely to remain confined to its downtrend (series of lower highs and lower lows) that has persisted since June 2021, given the dark clouds swirling about the UK economic outlook which have lent themselves to a downward bias for “cable”.

 

Other points to look out for today:

  1. Details on “Quantitative Tightening”

    Today, the BOE is also expected to unveil how it plans to reduce the 895 billion in “easy money” it has pumped out (by selling gilts) into the UK economy since the 2008 global financial crisis.

    Such details may impact gilt yields, which have a large influence over Sterling’s moves.

  2. BOE’s economic and inflation forecasts

    Markets will be eager to find out how high the BOE thinks UK inflation will go, and the central bank’s forecasts on the likelihood of a UK recession.

    The Pound will be ready to offer an immediate reaction to such economic projections, as they should inform market expectations for how the BOE is able to respond (i.e. how much higher UK rates can go).


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Will the S&P 500 Index Go the Way of Meme Stocks?

Here’s what usually happens when “financial lunacy” is prevalent

By Elliott Wave International

You don’t hear much about the meme stock craze anymore — and for good reason.

It’s all but dead and has been for months (Barron’s, Jan. 28):

A Year After It Began, Meme-Stock Mania Is on Life Support

Early last year, the movement to buy meme stocks — like AMC, Gamestop and others — was largely driven by discussions on the internet, mainly by stock market novices.

When the movement was still going strong, the February 2021 Elliott Wave Financial Forecast, a monthly publication which covers major U.S. financial markets, made this comment about meme stocks:

A mania is pretty funny, especially at the very end, when financial lunacy is so prevalent that many assume it to be permanent.

Here’s an update from the July Elliott Wave Financial Forecast:

As you can see on the chart, the Meme Stock Index is down 65% from its early 2021 peak (as of the time the July Elliott Wave Financial Forecast published). So, indeed, the assumption of permanency was what you would call — misplaced.

What you need to know is that an assumption of permanency is now geared toward the main stock indexes — not just by amateur investors, but professionals (Bloomberg June 27):

S&P Analysts Haven’t Been This Bullish In 20 Years

It’s clear that these S&P analysts are shrugging off the downtrends that began in the Dow Industrials and S&P 500 index in January.

They may turn out to be correct — in other words, the downtrend is over and another major leg up is set to start.

Then again, you may want to consult the stock market’s Elliott wave structure.

The July Elliott Wave Financial Forecast describes two Elliott wave options for the S&P 500 index between now and the end of summer.

If you’re unfamiliar with Elliott wave analysis, you are encouraged to read Frost & Prechter’s Wall Street classic, Elliott Wave Principle: Key to Market Behavior. Here’s a quote from the book:

In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns. The patterns he discerned are repetitive in form but not necessarily in time or amplitude. Elliott isolated five such patterns, or “waves,” that recur in market price data. He named, defined and illustrated these patterns and their variations. He then described how they link together to form larger versions of themselves, how they in turn link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The Wave Principle.

Although it is the best forecasting tool in existence, the Wave Principle is not primarily a forecasting tool; it is a detailed description of how markets behave. Nevertheless, that description does impart an immense amount of knowledge about the market’s position within the behavioral continuum and therefore about its probable ensuing path. The primary value of the Wave Principle is that it provides a context for market analysis.

Would you like to delve deeper into the Wave Principle?

If your answer is “yes,” here’s good news: You can access the entire online version of the book for free once you join Club EWI, the world’s largest Elliott wave educational community.

A Club EWI membership is free and allows free access to a wealth of Elliott wave resources on investing and trading. These resources include videos and special reports, many of which are from Elliott Wave International’s analysts.

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This article was syndicated by Elliott Wave International and was originally published under the headline Will the S&P 500 Index Go the Way of Meme Stocks?. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

The cryptocurrency market digest (BTC, SOL). Overview for 03.08.2022

Article By RoboForex.com

After five trading sessions of declining, the BTC managed to reach stability and is even trying to grow a bit. The asset is mostly fluctuating at $23,412.

There isn’t too much activity in the cryptocurrency. It could be explained by controversial external background, investors’ concerns about geopolitics, and so on. However, the fact is: the crypto market has no trading ideas of its own and market players believe it would be unwise to buy without any support from stock indices.

Interestingly enough, the BTC wasn’t too effective in talking advantage of the uptrend in S&P 500 and NASDAQ that took place earlier. Of course, the major crypto asset moved away from the lows, but it still hasn’t been able to break the resistance at $23,500. The daily chart shows that if bulls take control, the BTC may break $23,500 and continue rising to reach $24,200-$24,500. Otherwise, the first downside target might be $22,500.

The crypto market capitalisation is currently estimated at $1.06 trillion; the fear index is up to 34 points.

Minexmr shuts down

One of the key Monero mining pools will shut down on 12 August. It is known that the pool controls about 40% of all Monero mining facilities.

Solana suffered from exploit

Solana seriously suffered from the hacker attack. According to OtterSec, hackers got access to 8,000 wallets and stole over $8 million. The most part of these wallets didn’t record any activities in the last six months. The ecosystem’s reputation might be compromised: all transactions were signed by wallet owners, which means that hackers had their private keys.

Variant: investments in crypto companies

Venture company Variant announced it raised $450 million for two new funds. One of them is Web-3, which will get about $300 million, while the others are new startups. Variant is very interested in crypto projects: earlier, it invested in the DeFi-platform Goldfinch and some other companies.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

JPY: under pressure. Overview for 03.08.2022

Article By RoboForex.com

After moving away from its 8-week low, USDJPY is recovering.

The Japanese Yen is falling against the USD on Wednesday. The current quote for the instrument is 133.17.

The Yen was in demand when the US bond yield was plunging and the “greenback” was getting weaker, but these tendencies are now over. Nevertheless, the Yen managed to run away from its 8-week lows.

Another factor that supported the Japanese currency was market players’ demand for “safe haven” assets.

Speaking about currency exchange rates yesterday, the Japanese Minister of Finance said that the Yen’s recent dynamics were rather uncontrollable. To make the financial system look stable, currency exchange rates should be stable and reasonable, backed by fundamental indicators.

The Yen might get under pressure if the Bank of Japan keeps the benchmark interest rate negative and provides no insight into what will happen to the Japanese economy in the future.

A bit later, investors will understand what is happening to the Yen right now: whether it’s a rebound from the highs or a proper reversal in favour of the devaluation scenario.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.