Farmers can save water with wireless technologies, but there are challenges – like transmitting data through mud

By Abdul Salam, Purdue University 

Water is the most essential resource for life, for both humans and the crops we consume. Around the world, agriculture accounts for 70% of all freshwater use.

I study computers and information technology in the Purdue Polytechnic Institute and direct Purdue’s Environmental Networking Technology (ENT) Laboratory, where we tackle sustainability and environmental challenges with interdisciplinary research into the Agricultural Internet of Things, or Ag-IoT.

The Internet of Things is a network of objects equipped with sensors so they can receive and transmit data via the internet. Examples include wearable fitness devices, smart home thermostats and self-driving cars.

In agriculture, it involves technologies such as wireless underground communications, subsurface sensing and antennas in soil. These systems help farmers track conditions on their land in real time, and apply water and other inputs such as fertilizer exactly when and where they are needed.

White sticks embedded in soil among corn stalks
Sensors installed in a corn field.
Abdul Salam, CC BY-ND

In particular, monitoring conditions in the soil has great promise for helping farmers use water more efficiently. Sensors can now be wirelessly integrated into irrigation systems to provide real-time awareness of soil moisture levels. Studies suggest that this strategy can reduce water demand for irrigation by anywhere from 20% to 72% without hampering daily operations on crop fields.

What is the Agricultural Internet of Things?

Even in dry places such as the Middle East and North Africa, farming is possible with efficient water management. But extreme weather events driven by climate change are making that harder. Recurrent droughts in the western U.S. over the past 20 years, along with other disasters like wildfires, have caused billions of dollars in crop losses.

Water experts have measured soil moisture to inform water management and irrigation decisions for decades. Automated technologies have largely replaced hand-held soil moisture tools because it is hard to take manual soil moisture readings in production fields in remote locations.

In the past decade, wireless data harvesting technologies have begun to provide real-time access to soil moisture data, which makes for better water management decisions. These technologies could also have many advanced IoT applications in public safety, urban infrastructure monitoring and food safety.

The Agricultural Internet of Things is a network of radios, antennas and sensors that gather real-time crop and soil information in the field. To facilitate data collection, these sensors and antennas are interconnected wirelessly with farm equipment. The Ag-IoT is a complete framework that can detect conditions on farmland, suggest actions in response and send commands to farm machinery.

Graphic showing satellites, drones, wireless underground communications systems and other digital components collecting and sharing signals around a farm
Technologies that together comprise the Agricultural Internet of Things.
Abdul Salam/Purdue University, CC BY-ND

Interconnecting devices such as soil moisture and temperature sensors in the field makes it possible to control irrigation systems and conserve water autonomously. The system can schedule irrigation, monitor environmental conditions and control farm machines, such as seed planters and fertilizer applicators. Other applications include estimating soil nutrient levels and identifying pests.

The challenges of putting networks underground

Wireless data collection has the potential to help farmers use water much more efficiently, but putting these components in the ground creates challenges. For example, at the Purdue ENT Lab, we have found that when the antennas that transmit sensor data are buried in soil, their operating characteristics change drastically depending on how moist the soil is. My new book, “Signals in the Soil,” explains how this happens.

A scientist stands next to a wood-framed test bed containing equipment embedded in soil
Abdul Salam takes measurements in a test bed at Purdue University to determine the optimum operating frequency for underground antennas.
Abdul Salam, CC BY-ND

Farmers use heavy equipment in fields, so antennas must be buried deep enough to avoid damage. As soil becomes wet, the moisture affects communication between the sensor network and the control system. Water in the soil absorbs signal energy, which weakens the signals that the system sends. Denser soil also blocks signal transmission.

We have developed a theoretical model and an antenna that reduces the soil’s impact on underground communications by changing the operation frequency and system bandwidth. With this antenna, sensors placed in top layers of soil can provide real-time soil condition information to irrigation systems at distances up to 650 feet (200 meters) – longer than two football fields.

Another solution I have developed for improving wireless communication in soil is to use directional antennas to focus signal energy in a desired direction. Antennas that direct energy toward air can also be used for long-range wireless underground communications.

Two metal radios on the ground
Using software-defined radios to detect soil measurement signals. These radios can adjust their operating frequencies in response to soil moisture changes. In actual operation, the radios are buried in the soil.
Abdul Salam, CC BY-ND

What’s next for the Ag-IoT

Cybersecurity is becoming increasingly important for the Ag-IoT as it matures. Networks on farms need advanced security systems to protect the information that they transfer. There’s also a need for solutions that enable researchers and agricultural extension agents to merge information from multiple farms. Aggregating data this way will produce more accurate decisions about issues like water use, while preserving growers’ privacy.

These networks also need to adapt to changing local conditions, such as temperature, rainfall and wind. Seasonal changes and crop growth cycles can temporarily alter operating conditions for Ag-IoT equipment. By using cloud computing and machine learning, scientists can help the Ag-IoT respond to shifts in the environment around it.

Finally, lack of high-speed internet access is still an issue in many rural communities. For example, many researchers have integrated wireless underground sensors with Ag-IoT in center pivot irrigation systems, but farmers without high-speed internet access can’t install this kind of technology.

Integrating satellite-based network connectivity with the Ag-IoT can assist nonconnected farms where broadband connectivity is still unavailable. Researchers are also developing vehicle-mounted and mobile Ag-IoT platforms that use drones. Systems like these can provide continuous connectivity in the field, making digital technologies accessible for more farmers in more places.The Conversation

About the Author:

Abdul Salam, Assistant Professor of Computer and Information Technology, Purdue University

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

 

Single Stock ETFs Are Here

By Ino.com

In July, AXS Investments debuted US-based investors’ first single stock Exchange Traded Funds. These ETFs allow investors to gain leverage on certain individual stocks.

However, because you are using leverage, there is more risk involved, and the authorities want investors to understand these risks before purchasing these new products.

The risks are associated with the leveraged exposure these new ETFs offer and the risk associated with investing in individual stocks. But since leverage is being applied, the risk level multiplies.

For example, one of the new ETFs being offered is the AXS 2X NKE Bull Daily ETF (NKEL) which provides investors 2X leverage to Nike (NKE) stock. This would mean that if you owned NKEL on a day when Nike stock increased by 0.50%, the NKEL ETF, which is 2X leverage, will go up 1.00%.

But, the opposite is also true. So if Nike stock fell by 1%, the NKEL ETF, which tracks Nike stock at a 2X leveraged ratio, would lose 2%.

Leverage is a very nice thing to have when it is being applied in the direction you want it to move. But leverage can be deadly when it is going against you.

Hence why the Securities and Exchange Commission is warning investors of the dangers associated with any single stock ETF, even if it is not marketing itself as leveraged.

One example of a new single stock ETF that is not marketing itself as leveraged is the AXS TSLA Bear Daily ETF (TSLQ). This ETF only tracks Tesla, but to the downside with just 1X leveraged exposure.

This essentially means that the TSLQ is shorting Tesla. But, unlike having to short a stock, which would require approval from your broker, a margin account, and the risk of not losing more than 100% of your investment, you simply have to buy this one ETF and not worry about the other things.

AXS currently has eight single-stock ETFs:

The AXS TSLA Bear Daily ETF (TSLQ), shorts Tesla.
The AXS 1.25X NVDA Bear Daily ETF (NVDS) is short NVDA.
The AXS 1.5X PYPL Bear Daily ETF (PYPS) which shorts PayPal.
The AXS 1.5X PYPL Bull Daily ETF (PYPT) which is long PayPal.
The AXS 2X NKE Bear Daily ETF (NKEQ) which is short Nike.
The AXS 2X NKE Bull Daily ETF (NKEL) which is bullish Nike.
The AXS 2X PFE Bear Daily ETF (PFES) is short Pfizer.
The AXS 2X PFE Bull Daily ETF (PFEL) is long Pfizer.

The leveraged ones have the amount of leverage they are providing in the name of the ETF. But all the funds currently charge a 1.15% expense ratio and are intended to be held one day at a time due to the contango effect caused by gaining leverage or the inversion.

More single stock leveraged and inverse ETFs are coming to the market as Direxion, GraniteShares, and Kurv Investment Management all have filed with the SEC to be permitted to offer their own single stock ETFs.

The filing shows that roughly 35 stocks will have a corresponding ETF, with some being blue chip stocks, some in the technology world, some in energy, and even some that are just very volatile stocks.

Investors are and will continue to be given a lot of opportunities to invest with leverage and make ‘bets’ on the direction of individual stocks.

But, just because you can do something does not always mean you should do it.

Learn more about the risks of investing in these ETFs and how contango will affect your investment if you hold these ETFs for longer than one day at a time before owning these single stock ETFs.

Matt Thalman
INO.com Contributor
Follow me on Twitter @mthalman5513

Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.

By Ino.com – See our Trader Blog, INO TV Free & Market Analysis Alerts

Source: Single Stock ETFs Are Here

Big Bitcoin Bets Burn This Firm: What’s Next for the Cryptocurrency?

MicroStrategy executive remains bullish on Bitcoin — mentions “ideal entry point”

By Elliott Wave International

Big bets on a hot financial market can be rewarding, but you know the flip side.

These sizzling markets can just as quickly severely punish because they have a way of cooling off just when nearly everyone is convinced that the market will get even hotter.

Consider MicroStrategy, a software firm which borrowed money to invest in Bitcoin.

So far, things haven’t worked out so well. Here’s an August 3 Marketwatch headline:

MicroStrategy racks up $1 billion loss, says CEO will leave that post

That loss was due almost entirely to its investment in Bitcoin and occurred in Q2 — cumulatively, MicroStrategy has racked up around $2 billion in Bitcoin losses.

These losses are mentioned as an update to the January Global Market Perspective coverage (The Global Market Perspective is an Elliott Wave International monthly which provides analysis of 50-plus worldwide financial markets):

The chart shows the long-term trend in the largest corporate holder of bitcoin, MicroStrategy Inc. At this point, MicroStrategy is down 62% from a countertrend rally top in February 2021. … The Global Market Perspective issued [a] reversal warning in April 2021 based on the latest change of trend in MicroStrategy’s share price: “The huge looming thing is how common these reversals of fortune are going to become.”

At the time of that Global Market Perspective coverage of more than six months ago, MicroStrategy had already raised its Bitcoin holdings to $5.9 billion (as of Dec. 30, 2021).

Despite the loss, MicroStrategy is not backing off its bullish view of Bitcoin with the CEO saying in an early August interview that this is an ideal entry point to buy Bitcoin.

Of course, only time will tell if the CEO turns out to be right or wrong. All the while, Bitcoin’s Elliott wave pattern is revealing its own message.

If you’d like to learn how Elliott wave analysis can be useful to you as an investor (or you simply need a refresher), you are encouraged to read Frost & Prechter’s Elliott Wave Principle: Key to Market Behavior. Here’s a quote from that book:

Without Elliott, there appear to be an infinite number of possibilities for market action. What the Wave Principle provides is a means of first limiting the possibilities and then ordering the relative probabilities of possible future market paths. Elliott’s highly specific rules reduce the number of valid alternatives to a minimum. Among those, the best interpretation, sometimes called the “preferred count,” is the one that satisfies the largest number of guidelines.

Review the “guidelines” and delve into many more details of the Elliott wave model by reading the online version of Elliott Wave Principle: Key to Market Behavior for free!

The only requirement for free and instant access to this Wall Street classic is a Club EWI membership. Club EWI is the world’s largest Elliott wave educational community and is free to join with zero obligations.

Club EWI members get free access to Elliott wave resources on financial markets and investing, including articles and videos from Elliott Wave International’s analysts.

Follow this link and you can have Elliott Wave Principle: Key to Market Behavior on your computer screen in moments — 100% free.

This article was syndicated by Elliott Wave International and was originally published under the headline Big Bitcoin Bets Burn This Firm: What’s Next for the Cryptocurrency?. 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.

Week Ahead: GBPUSD upside likely capped around 1.24

By ForexTime

Various asset classes, from FX to stocks, have been swayed by how central bankers are going about trying to tame surging global inflation.

That theme will continue to be the focus in the coming week:

 

Monday, August 15

  • JPY: Japan 2Q GDP, June industrial production (final)
  • CNH: China July industrial production, retail sales, jobless rate

Tuesday, August 16

  • GBP: UK June unemployment rate, July jobless claims
  • EUR: Eurozone August ZEW survey expectations
  • USD: US July industrial production
  • Walmart Q2 earnings

Wednesday, August 17

  • NZD: RBNZ rate decision
  • GBP: UK July CPI
  • EUR: Eurozone 2Q GDP, unemployment
  • USD: FOMC minutes, US July retail sales
  • US crude: EIA weekly oil inventory report
  • Tencent 2Q earnings

Thursday, August 18

  • AUD: Australia July unemployment
  • EUR: Eurozone July CPI (final print)
  • USD: US weekly jobless claims; speeches by Kansas City Fed President Esther George and Minneapolis Fed President Neel Kashkari

Friday, August 19

  • NZD: New Zealand July external trade
  • JPY: Japan July National CPI
  • GBP: UK July retail sales, August consumer confidence
  • CAD: Canada June retail sales

 

For the UK’s July consumer price index (CPI), markets are forecasting a year-on-year print of 9.9%.

If so, that would mark the fastest advance in UK inflation since the 10.2% print back in February 1982.

Though keep in mind that the Bank of England (BOE) had already forecasted double-digit inflation to arrive by October, hence it’ll be no surprise if the CPI print continues moving higher.

 

A higher-than-expected headline inflation print next week may not be enough to even prompt markets to significantly raise their bets that the Bank of England can proceed even with a 50-basis point hike at its September meeting.

  • A week ago, the odds of a 50bps hike in September was placed at 95.3%.
  • At the time of writing, markets are forecasting a 77% chance that the BOE can even follow through with such a “2-in-1” hike (rate adjustments by major central bankers are traditionally carried out at 25bps per policy meeting).

 

Markets have walked back bets of the BOE being overly aggressive with its rate hikes, given the cracks that are already showing in the UK economy:

  • Q2 GDP shrank 0.1% compared to Q1 (though slightly better than the -0.2% median estimate)
  • Industrial production fell 0.9% in June (second month-on-month contraction from the past 3)
  • Q2 private consumption contracted by 0.2% compared to Q1
  • Q2 imports fell by 1.5% quarter-on-quarter

 

Overall, it’s difficult to retain any optimism about the UK economic outlook, considering the ongoing cost of living crisis.

And the widely-held consensus is that the worst is yet to come, with a recession looming.

Such a woeful outlook, with the BOE already expecting a recession by the end of this year, is set to cap significant upside for the Pound.

Sterling has weakened against all of its G10 peers this week, except versus the US dollar.

 

While GBPUSD has found support at its 21-day simple moving average in recent sessions, upside appears capped around the 1.24 mark.

Should we see a resurgence in the US dollar in the coming week, perhaps fuelled by fresh hawkish clues out of the FOMC minutes or the scheduled speeches by Fed officials, that might see GBPUSD falling below its 21-day SMA and retesting the psychologically-important 1.20 level.

Weaker-than-expected UK jobs data, consumer confidence, and retail sales in the coming week could also prompt GBPUSD to revisit recent lows.

 


Forex-Time-LogoArticle by ForexTime

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

 

The cryptocurrency market digest (BTC, ETH). Overview for 12.08.2022

Article By RoboForex.com

The BTC is looking neutral on Friday and trading at $23,962. It feels like the asset is slowly pushing its trading range upwards. The BTC owes its positive momentum to improved sentiment in the US stock market – the major crypto has a direct correlation with S&P 500/NASDAQ. Indices moved upwards yesterday and the BTC followed. However, this enthusiasm disappeared by Thursday evening.

The current situation in the BTC is looking quite bullish. There are several important resistance levels at $25,000-$25,500, and it’s very important for bulls to break $25,000. The sooner they break it, the fewer chances investors will have to record a profit: everyone will be focused on buying.

At the end of this trading week, the capitalisation of the crypto market is estimated at 1.144 trillion; the fear index has grown to 42 points.

Coinbase rating declined

The S&P Global agency downgraded Coinbase long-term to ВВ from ВВ+, negative forecast. In the comments, the agency explained that the company had an unimpressive financial statement in the previous quarter. Another reason is an increase in competitive pressure.

ETH takes the centre stage

It became known yesterday that the Ethereum upgrade is known as the “The Merge”, and the whole network switch is now scheduled for 15 September, not 19. It’s going to be one of the most significant events in the history of the company and the entire crypto world. The point of this two-stage update (Bellatrix and Paris) is to shift the ecosystem to Proof-of-Stake. After the second stage, the platform will operate at its full power. The first stage, Bellatrix, is scheduled for 6 September. Apart from switching to Proof-of-Stake, the update will improve scalability and increase the network’s ecological sustainability.

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.

Ichimoku Cloud Analysis 12.08.2022 (GBPUSD, AUDUSD, USDCAD)

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is testing 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 1.2130 and then resume moving upwards to reach 1.2415. 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 1.2040. In this case, the pair may continue falling towards 1.1950.

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

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is growing 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 Kijun-Sen at 0.7040 and then resume moving upwards to reach 0.7275. 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 0.6905. In this case, the pair may continue falling towards 0.6805. To confirm a further uptrend, the price must break the bearish channel’s upside border and fix above 0.7205.

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

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is rebounding from Tenkan-Sen and Kijun-Sen. The instrument is currently moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test resistance area at 1.2790 and then resume moving downwards to reach 1.2535. Another signal in favour of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.2940. In this case, the pair may continue growing towards 1.3035.

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

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 2022.08.12

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.0298
  • Prev Close: 1.0319
  • % chg. over the last day: +0.20%

Data on Thursday showed that producer prices in the US unexpectedly fell in July amid falling energy costs. Meanwhile, core producer inflation is also trending lower. In the labor market, jobless claims rose for the second week in a row. Traders of federal funds futures contracts currently estimate a 66% chance of a 50 basis point increase and a 34% chance of a 75 basis point increase in September.

Trading recommendations
  • Support levels: 1.0286, 1.0247, 1.0201, 1.0112, 1.0035, 1.0000
  • Resistance levels: 1.0317, 1.0365, 1.0415, 1.050

From a technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is now forming a small balance with the borders of 1.0286-1.0317. Under such market conditions, buy trades are best sought on intraday time frames from the support level of 1.0286, but with confirmation. Sell trades can be considered from the resistance level of 1.0317, but only after additional confirmation and with short targets.

Alternative scenario: if the price breaks down through the 1.0201 support level and fixes below, the downtrend will likely resume.

EUR/USD
News feed for 2022.08.12:
  • – Eurozone Industrial Production (m/m) at 12:00 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2218
  • Prev Close: 1.2199
  • % chg. over the last day: -0.16%

In the UK, the week ends with Friday’s second quarter GDP report and manufacturing data. Markets expect weak data – GDP is forecasted to fall by 2.5% annually. For the quarter, GDP is forecast to be down by 0.2% after rising by 0.8% in the first quarter. The pound rose strongly on Wednesday thanks to US inflation data. But if GDP and manufacturing data are worse than forecast, the pound will likely lose ground.

Trading recommendations
  • Support levels: 1.2130, 1.2063, 1.2000
  • Resistance levels: 1.2240, 1.2294

From the technical point of view, the currency pair GBP/USD trend on the hour timeframe is still upward. The price has corrected to the levels of the moving averages, where a small balance is forming. The MACD indicator has become inactive. At the moment, it is best to look for buy trades on intraday time frames from the support level of 1.2130, but only with confirmation. Sell trades can be considered from the resistance level of 1.2240, 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 2022.08.12:
  • – UK GDP (m/m) at 09:00 (GMT+3);
  • – UK Industrial Production (m/m) at 09:00 (GMT+3);
  • – UK Manufacturing Production (m/m) at 09:00 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 132.89
  • Prev Close: 132.97
  • % chg. over the last day: +0.06%

According to the Corpay chief strategist, in connection with the prospect of less aggressive monetary and credit policy from the Federal Reserve System, the appetite for risk has somewhat recovered, which allowed the Japanese yen to strengthen against the background of the dollar decline. But investors should not count on a long-term downward trend, as the difference in interest rates is not in favor of strengthening the Japanese Yen.

Trading recommendations
  • Support levels: 132.41, 131.08, 130.85
  • Resistance levels: 134.36, 136.02, 137.12

From the technical point of view, the medium-term trend on the currency pair USD/JPY is still bullish. The price has formed an accumulation zone above the 134.36 level, so a test of this zone is very likely. Under such market conditions, buy trades can be sought from the support level of 132.41, but with additional confirmation. For sell deals, it is possible to consider the level of resistance 134.36, but only with additional confirmation in the form of a reverse initiative, as fundamentally, USD/JPY quotes are inclined to grow.

Alternative scenario: If the price fixes above 136.02, 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: 1.2769
  • Prev Close: 1.2760
  • % chg. over the last day: -0.07%

Canadians have a chronic housing shortage, and the Canada Mortgage and Housing Corporation estimate that about six million housing units must be built by 2030 to make housing more affordable. Banks are considering lending to Canadians, but amid rising interest rates, the appeal of such lending and mortgage programs is falling. According to a recent Manulife survey, about a quarter of Canadian homeowners say they will have to sell their properties if interest rates continue to rise. A recession is also looming, which could prove disastrous for already overstretched owners.

Trading recommendations
  • Support levels: 1.2750, 1.2701
  • Resistance levels: 1.2817, 1.2871, 1.2918, 1.2965

In terms of technical analysis, the USD/CAD currency pair trend has changed to bearish. The price has consolidated below the priority change level and below the moving averages. The MACD indicator has become negative, but the divergence is observed. Under such market conditions, buy trades should be considered on the lower time frames from the support level 1.2750, but only with confirmation and short targets. For sell deals, it is better to consider the resistance level 1.2817 or 1.2871, but with confirmation.

Alternative scenario: if the price breaks out and consolidates above the 1.2871 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.

Russian citizens may be banned from obtaining Schengen visas to Europe. Gas prices in Europe are breaking new records

By JustForex

US Federal Reserve officials tried to temper expectations for looser policy, and Neel Kashkari said at a conference on Wednesday that the Central Bank is a long way from declaring victory. Kashkari also added that the Central Bank’s proposal to cut interest rates early next year is unrealistic. In an interview with the Financial Times, San Francisco Fed President Mary Daly also warned that it is too early for the US Central Bank to “declare victory” in the fight against inflation. Amid such comments, stock indices fell slightly. At the close of the stock market yesterday, the Dow Jones Index (US30) added 0.08%, while the S&P 500 Index (US500) was down 0.07%. The NASDAQ Technology Index (US100) lost 0.58%.

The slowdown in US inflation may have opened the door for the Federal Reserve to soften the pace of the coming interest rate hikes, but policymakers left no doubt that they will continue to tighten monetary policy until price pressures are fully resolved. At this point, traders of federal funds futures contracts currently estimate a 66% chance of a 50 basis point hike and a 34% chance of a 75 basis point hike in September. Calling inflation “unacceptably high,” Chicago Fed President Charles Evans said he thinks the Fed will probably need to raise the rates to 3.25-3.5% this year and 3.75-4% by the end of next year.

Equity markets in Europe traded yesterday without a single dynamic. German DAX (DE30) decreased by 0.05%, French CAC 40 (FR40) added 0.33%, Spanish IBEX 35 (ES35) gained 0.33%, British FTSE 100 (UK100) was down by 0.55%.

European futures on gas exceeded $2350 per thousand cubic meters. Energy carriers are getting more expensive amid unprecedented heat waves in Europe. High temperatures caused unexpected strain on the region’s power grids, boosting the demand for electricity to power fans and air conditioners. Oil is in increasing demand in this environment as power plants seek alternatives to expensive gas. The International Energy Agency (IEA) raised its forecast for oil demand this year by 380,000 BPD. Normally, the IEA is negative on oil demand, but rising global natural gas prices may encourage more energy consumers to switch to oil for winter heating.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC), which usually does its best to boost oil prices, has lowered its forecast for global oil demand growth for 2022. OPEC said it expects oil demand to grow by 3.1 million BPD in 2022, down 260,000 BPD from its previous forecast. Goldman Sachs analysts again forecast an oil price above $130 a barrel by the end of the year.

Gold futures closed lower Thursday as a three-week rally in the precious metal’s prices halted, and investors shifted their attention to the rising US stock market rather than safe-haven assets such as gold and the dollar.

The Latvian Saeima declared Russia a sponsor of terrorism. Earlier, the US Senate passed a resolution urging the State Department to recognize Russia as a state sponsor of terrorism because of the events in Ukraine, Chechnya, Georgia, and Syria. A ban on issuing Schengen visas to all Russians could be part of the seventh package of European sanctions against Russia. EU countries are now discussing the issue.

Asian markets were trading up yesterday. Japan’s Nikkei 225 (JP225) was not trading due to the bank holiday, Hong Kong’s Hang Seng (HK50) added 2.40%, while Australia’s S&P/ASX 200 (AU200) ended the day up by 1.12%. But Asian stocks started declining at the open on Friday amid a new blockage in China. China’s economy is still reeling from a series of economically devastating quarantine restrictions imposed earlier this year, and investors are wary of further such measures. Quarantine in a major commodity center such as Yiwu could cause further problems for China’s industrial sector, which unexpectedly contracted in July.

S&P 500 (F) (US500) 4,207.27 −2.97 (−0.071%)

Dow Jones (US30) 33,336.67 +27.16 (+0.082%)

DAX (DE40) 13,694.51 −6.42 (−0.047%)

FTSE 100 (UK100) 7,465.91 −41.20 (−0.55%)

USD Index 105.19 −0.01 (−0.01%)

Important events for today:
  • – UK GDP (m/m) at 09:00 (GMT+3);
  • – UK Industrial Production (m/m) at 09:00 (GMT+3);
  • – Eurozone Industrial Production (m/m) at 12:00 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (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.

Women are better at statistics than they think

By Jonathan B. Santo, University of Nebraska Omaha and Kelly Rhea MacArthur, University of Nebraska Omaha 

The Research Brief is a short take about interesting academic work.

The big idea

Women in statistics classes do better academically than men over a semester despite having more negative attitudes regarding their own abilities, according to our recent study in the Journal of Statistics and Data Science Education.

Using data from more than 100 male and female students from multiple statistics classes, my colleague and I assessed gender differences in grades over the course of a semester. As part of the study, students also answered surveys at the start and end of the semester that measured six different things: their fear of statistics teachers in general; their thoughts about the usefulness of statistics; their perceptions of their own mathematical ability; their anxiety in taking tests; their anxiety in interpreting statistics; and their fear of asking for help.

Overall, we found that students with more negative perceptions of their own mathematical ability had lower grades over the course of the semester. What’s even more interesting are the gender differences that emerged.

Even though men and women scored similarly on exams at the start of the semester, women finished the semester with almost 10% higher final exam grades. This was the case even though women had significantly worse attitudes about their mathematical abilities at the start of the semester than their male counterparts.

At the beginning of the semester specifically, women were more likely to rate their mathematical abilities as lower than men in the class and report more anxiety toward exams and toward interpreting statistical findings. However, each of these self-assessments improved over the course of the semester such that women’s attitudes didn’t differ from men’s by the end.

Meanwhile, the grades of male students who reported fear of statistics teachers or fear of asking for help decreased more sharply over the course of the semester. For men whose attitudes improved during the semester, grades also improved – though not as much as women’s grades improved.

line graph showing association of fear of asking for help and grades among men and women over the course of a semester
Figure reflecting the effect of fear of asking for help and its change over time among women and men. Average grades decreased overall across the semester, likely because of coursework getting more challenging over time.
Jonathan Santo, Author provided

Why it matters

A number of studies have shown that from an early age, boys and girls learn math equally well.

However, girls are less likely to be called on in math classes than boys, even when they raise their hands as much as boys do. Moreover, some teachers unconsciously grade girls’ math tests more harshly than boys’. By middle school, gender differences in math scores emerge. These factors may contribute to adult women’s being more likely to rate themselves as less mathematically skilled than men. As a result, women are also less likely to pursue STEM – science, technology, engineering and math – occupations.

The results from our study, in line with others, bolster the notion that women have the potential to do as well as men, and even better, in STEM fields, such as statistics. We contend that women would benefit from additional mentoring to encourage them as they begin pursuing STEM-related education.

Undergraduate students at the University of Nebraska Omaha collaborate on a group assignment for a STEM course.
Derrick Nero, University of Nebraska Omaha, CC BY-NC-ND

What still isn’t known

The evidence above provides hints at some of the causes of the gender discrepancy in perceived ability. However, there is much we still don’t know.

For example, why did the attitudes of the women in our study improve over time? Was it based on their confidence in their abilities as their grades improved, or did their statistics teachers influence their perception of their own abilities over time?

More research is needed to understand exactly how women differed from men in their attitudes over the course of the school semester, among other questions. In particular, we’d like to disentangle exactly which classroom or instructor factors can lead to better attitudes among students, ultimately translating to better grades.The Conversation

About the Author:

Jonathan B. Santo, Professor of Psychology, University of Nebraska Omaha and Kelly Rhea MacArthur, Associate Professor of Sociology, University of Nebraska Omaha

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

 

China-US tensions: how global trade began splitting into two blocs

By ManMohan S Sodhi, City, University of London and Christopher S. Tang, University of California, Los Angeles 

Speaker Nancy Pelosi’s visit to Taiwan has elicited a strong response from China: three days of simulated attack on Taiwan with further drills announced, plus a withdrawal from critical ongoing conversations with the US on climate change and the military.

This strong reaction was predictable. President Xi had earlier warned President Biden not “to play with fire”. Of course, if Pelosi’s visit hadn’t gone ahead, the Biden administration would have faced a strong reaction from both parties in Congress for not standing up to China’s threat to Taiwan or human rights issues regarding Tibet and Xinjiang, not to mention Hong Kong.

So where does it leave trade between the world’s two leading powers?

How business trumped ideology

Consider the not-too-distant past. The US supported the Republic of China against Japan in the Pacific war of 1941-45. When the Chinese leadership fled to Taiwan in 1949 following the victory of Mao Zedong’s communists in the Chinese civil war, Washington continued to recognise the exiled regime as China’s legitimate government, blocking the People’s Republic of China (PRC) from joining the United Nations.

This shifted in 1972 following President Nixon’s historic visit to China (in a move to isolate the Soviets). The US now recognised the PRC as China’s sole government and accepted its One China policy. It downgraded its Taiwan relations to merely informal, while affirming a peaceful settlement to the mainland communists’ claim that this was a breakaway province that had to be assimilated.

Mao Zedong shakes hands with a smiling Richard Nixon.
President Richard Nixon meeting Chairman Mao Zedong in Peking (Beijing) in 1972.
manhhai, CC BY-SA

This opened US-China trade, ending a US trade embargo in place since the 1940s. Economic ties proliferated in the 1980s under Mao’s eventual successor, Deng Xiaoping, helping the Chinese economy to multiply while the US enjoyed lower consumer prices and a stronger stock market.

Western manufacturing firms either outsourced to Chinese firms or set up operations themselves. They benefited from cheaper production and – for those outsourcing – not having to own factories or deal with labour issues. In turn, the Chinese gained tremendous manufacturing capability.

As China’s middle class grew wealthier, the country became a major target consumer market for US firms such as Apple and GM. The Chinese authorities insisted this was done through local partner firms, transferring technology in the process and further enhancing the nation’s manufacturing know-how.

The growing Chinese threat

China and the US captured more than half the growth in GDP across the world from 1980 to 2020. US GDP grew nearly five times from US$4.4 trillion (£3.6 trillion) to US$20.9 trillion (£17.3 trillion) in today’s money, while China’s grew from US$310 billion to US$14.7 trillion.

China is now the second largest economy, although the IMF, World Bank and CIA consider it the largest once purchasing power is taken into account (see chart below). The US is still well ahead on per capita income (US$69,231 vs US$12,359 in 2021), though China’s is now that of a “developed” country, having lifted 800 million people out of poverty in the process.

The US has become increasingly concerned about China’s faster economic growth and the fact that the US buys much more from its rival than the other way around. This drove the big decline in US domestic manufacturing that famously helped Donald Trump to win the US presidency.

Chinese and US GDP based on purchasing power parity 1990-2021

Graph showing Chinese and US GDP on a PPP basis.
World Bank

Equally, the rivalry has extended to other areas as China has sought a leading role on the world stage. Both nations are nuclear powers, although the Chinese military has only 350 nuclear warheads to America’s 5,500.

China has a larger navy, with some 360 battle force ships compared to the US 297, although China’s are mostly smaller – only three aircraft carriers compared to America’s 11, for example. The two countries are also competing in space to bring astronauts to the Moon and establish the first lunar base.

All this has threatened American dominance, while President Xi has also been much more forthright both domestically and internationally than any Chinese leader since Mao. The US has gradually become more hostile, starting with President Obama’s pivot towards other Asian nations in 2016 and then President Trump’s public complaints and eventual sanctioning of China’s “unfair” trade practices.

Trump imposed extra tariffs on goods imported from China in 2018 and restricted China’s access to various semiconductor manufacturing technologies in 2020, while the Chinese responded with countermeasures along the way.

When President Biden took office in 2021, he began highlighting long-simmering complaints about human rights issues in Xinjiang and the threat to Taiwan (while still endorsing the One China Policy). He also imposed sanctions on certain Chinese companies of a kind not been seen since the Mao-era trade embargo.

US trade in goods to China 2011-21

Graph showing US trade in goods to China
Note the US trade in services to China is about one-tenth that of goods. In 2020 the US exported US$40 billion in services to China and imported US$16 billion.
Statista

Biden also banned goods from China’s Xinjiang region on the grounds of forced labour in 2022, affecting the purchasing of goods by many western companies. China reportedly moved workers to other parts of the country to enable western companies to keep purchasing.

Bipolarity is back

COVID-19 further increased the distance between the two countries. After China’s zero COVID policy helped to disrupt supply chains and cause product shortages, the Biden administration began calling for reduced dependency on its rival.

US firms have duly been restructuring their supply chains. In June, Apple moved some iPad production from China to Vietnam, albeit also because of growing demand in south-east Asia.

Near-shoring to Mexico is gaining momentum. Apple manufacturers Foxconn and Pegatron are considering producing iPhones for North America in Mexico rather than China to take advantage of lower labour costs and the free-trade agreement between the US and Mexico.

Two global blocs are increasingly emerging, with US treasury secretary Janet Yellen in April calling for “friend-shoring” with trusted partners, dividing countries into friends or foes. The Biden administration announced at the June G7 meeting a new “Partnership for Global Infrastructure and Investment”. Aiming to mobilise US$600 billion in investments over five years, this is an overture to various developing countries already being courted by China under its similar Belt and Road Initiative.

Days earlier, China had hosted the annual BRICS summit, which includes Brazil, Russia, India and South Africa. It welcomed leaders from 13 other countries: Algeria, Argentina, Egypt, Indonesia, Iran, Kazakhstan, Senegal, Uzbekistan, Cambodia, Ethiopia, Fiji, Malaysia and Thailand. Xi urged the summit to build a “global community of security” based on multilateral cooperation. Iran and Argentina have since applied to join the bloc.

We are already seeing what bipolarity will mean for vital components and commodities. In nanochips, the US is leading a “chips 4” pact with Japan, Taiwan and possible South Korea to develop next-generation technologies and manufacturing capacity. China is investing US$1.4 trillion between 2020 and 2025 in a bid to become self-reliant in this technology.

Another big issue is cobalt, which is essential for making lithium batteries for electric vehicles. To secure supply from the Democratic Republic of the Congo, which produces 70% of world reserves, China has navigated Congolese politics, lobbying powerful politicians in mining regions. By 2020, Chinese firms owned or had a stake in 15 of the DRC’s 19 cobalt-producing mines.

As China hoards cobalt supplies, the US seeks alternatives. GM is developing its Ultium battery cell, which needs 70% less cobalt than today’s batteries, while Oak Ridge National Laboratory is developing a battery that doesn’t need the metal at all.

Silver linings

As US-China relations have moved from building bridges in 1972 to building walls in 2022, countries will increasingly be forced to choose sides and companies will have to plan supply chains accordingly. Those seeking to trade in both blocs will need to “divisionalise”, running parallel operations.

American companies wanting to serve Chinese consumers will still need to manufacture in China or other nations within that bloc, while Chinese companies will need to do the same in reverse. Interestingly, Chinese companies have been rapidly buying farmland and agriculture-based companies in the US and elsewhere.

Yet though the new supply chains will almost certainly increase costs for western consumers and dampen China’s growth, there will be benefits. Supply chains should be more resilient to future crises and also more transparent, while reduced transportation (and reliance on Chinese coal) should cut carbon emissions. This should help to meet the UN Sustainable Development Goals on environmental and social sustainability.

The cobalt and nanochips examples also show how the US-China rivalry is catalysing innovation. And importantly, global trade will continue growing as countries depend on each other, even as trade links change.

It will certainly take time to find an equilibrium. It took years for the USSR and US to figure out how to co-exist without getting into direct military conflict. Hillary Clinton wrote in 2011 as Secretary of State that “there is no handbook for the evolving US-China relationship”, and that remains the case today.

At any rate, the businesses that thrive in this new environment will likely be those that plan for a divided world with divisional supply chains. The recent Taiwan row will probably not lead to direct military conflict; rather it will reinforce a trend that has been gathering momentum for a decade or more.The Conversation

About the Author:

ManMohan S Sodhi, Professor of Operations and Supply Chain Management, City, University of London and Christopher S. Tang, Professor of Supply Chain Management, University of California, Los Angeles

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