Forex

Investing.com –

Investing.com – The New Zealand dollar jumped on Wednesday after the central bank governor said it should be weaker consistent with the economy while adding that sharply lower interest rates are not the way to that goal.

NZD/USD traded at 0.6720, up 0.62%, while AUD/USD traded at 0.7342, up 0.09% and USD/JPY changed hands at 123.59, up 0.02%.

A weaker New Zealand dollar would be consistent with current economic conditions, Reserve Bank of New Zealand Bank Governor Graeme Wheeler said Wednesday in a speech on monetary policy, dismissing predictions for large declines in interest rates because that would be consistent with the economy moving into recession.

“Our models suggest that the real exchange rate is currently in the vicinity of its long-run equilibrium value – if growth, inflation, and the terms of trade were at their long-run trends. However, the exchange rate remains above the level consistent with current economic conditions and, in particular, the current low level of export prices,” Wheeler said in a speech delivered to ExportNZ in Tauranga, New Zealand.

The current account deficit level is expected to become larger over the next two years based on recent New Zealand dollar level and terms of trade, he said.

“At current levels of export prices, a more substantial exchange rate depreciation is therefore required to stabilise the net external liabilities position relative to GDP,” he said.

Ahead are Japan retail sales for June with a 0.5% gain seen year-on-year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.01% to 96.75.

Overnight, the dollar trimmed gains against most of the other major currencies on Tuesday, after data showed that U.S. consumer confidence deteriorated this month, while markets awaited the conclusion of the Federal Reserve’s policy meeting this week.

The Conference Board, a market research group, said its index of consumer confidence fell to 90.9 this month from a downwardly revised 99.8 in June. Economists had forecast a reading of 100.0.

A less optimistic outlook for the labor market, as well as uncertainty and volatility in financial markets prompted by the situation in Greece and China sapped investor sentiment, the report said.

Other reports earlier Tuesday showed that U.S. house price growth stalled in May, while activity in the service sector picked up this month.

Investors were looking ahead to Wednesday’s Fed statement to see if policymakers would give any indication on the timing of an initial rate hike.

Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.

The U.S. was to release figures on second quarter growth on Thursday, which were expected to show that the economy rebounded following a contraction in the first quarter following an unusually harsh winter.

Volatility in Chinese equity markets has roiled the Aussie, because of the country’s strong trade links to China.

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TNT CHAT UPDATE, 28 JULY

TNT:Iko Ward:  Guys, I think it started, we’re just waiting on line for our turn…. I have seven screens open 24/7 showing current conditions. It’s all good. It’s all stable. And it all agrees with Tony’s assessment.Iko Ward:  You guys can do it too if you want. cbi.iq; CNN Money World Markets; ISX home page: DFX Crude Oil Chart; KITCO Spot Gold Chart; Forex (but unless you want to pay 5K just

KTFA CC NOTES, 28 JULY

KTFA :Dessert” From Frank26 and Tuesday Night CC7-FA:  GREETINGS FAMILYI BELIEVE WE POURED OUR HEARTS OUT ON YESTERDAY’S CC BUT TELL THE FAMILY WE ARE FOCUSED ON AUGUST THE FIRST TO SEE IF THE TAX AND TARRIF LAWS COME OUT AND TO SEE IF THE BONDS ACTUALLY START SELLING…BOTH IN AND OUT OF IRAQIF WE DON’T SEE THIS WE SHOULD NOT DESPAIR BUT INSTEAD WATCH AS THE DAYS GO BY IN THE MONTH OF AUGUST  TO

Short CC Notes From Frank26 at KTFA Tuesday Night

KTFA :Dessert” From Frank26 and Tuesday Night CC

7-FA:  GREETINGS FAMILY

I BELIEVE WE POURED OUR HEARTS OUT ON YESTERDAY’S CC BUT TELL THE FAMILY WE ARE FOCUSED ON AUGUST THE FIRST TO SEE IF THE TAX AND TARRIF LAWS COME OUT AND TO SEE IF THE BONDS ACTUALLY START SELLING…

BOTH IN AND OUT OF IRAQ

IF WE DON’T SEE THIS WE SHOULD NOT DESPAIR BUT INSTEAD WATCH AS THE DAYS GO BY IN THE MONTH OF AUGUST  TO FIND THESE THINGS
….

I WANT TO TALK ABOUT OUR MILITARY ASSAULT BUT LIMITED RIGHT NOW AND YET THAT IS A VERY STRONG ISSUE AT THE MOMENT BECAUSE IT IS IMPRESSIVE

WE ARE KICKING BUTT BUT IT’S THE CONCEPT OF EVERYBODY HELPING US IN THE M.E. TO DO THIS THAT FUELS THE MR

ANYWAYS I KNOW IT’S SHORT BUT SWEET………….

A LITTLE EXTRA THAT CAME IN LATE

DELTA CALLED FRANK AND PROVIDED THE FOLLOWING INFORMATION:

BONDS CONTINUE TO BE SOMETHING WORTHY OF WATCHING

THE 30-45 DAY WINDOW THAT WE’VE TALKED ABOUT PERTAINS TO THE BONDS

THERE WILL BE MORE TALK ON TEAM CHAT ON THURSDAY ABOUT THE BONDS AS WELL AS ON THE NEXT MONDAY NIGHT CC

FIRST WE BELIEVE THE DOMESTIC BONDS WILL BE SEEN AT THE 1095 LEVEL TO ENTICE THE IRAQI CITIZENS TO COME INTO THE BANKS AND TO INTEREST THEM IN PARTICIPATING IN THE SALE OF THE 2 BILLION IN DOMESTIC BONDS

THIS CHANGE FROM 1166 IS THAT “ATTRACTION” OR ENTICEMENT THAT DR. S KNOWS IS NECESSARY AT THIS TIME

ONCE THE DOMESTIC BONDS ARE OUT THEN WE WATCH FOR THE INTERNATIONAL BONDS TO SHOW AND JUST AS THE DOMESTIC BONDS NEEDED TO BE ATTRACTIVE SO DO THE INTERNATIONAL BONDS AND WE LOOK FOR THAT “ATTRACTION” THAT WOULD BE TIED TO THEM

THE INTERNATIONAL BONDS WE BELIEVE WILL TOTAL 3 BILLION….

AGAIN SHORT BUT SO VERY SWEET

Bits and Pieces in Dinarland Tuesday Evening

TNT:

Iko Ward:
  Guys, I think it started, we’re just waiting on line for our turn…. I have seven screens open 24/7 showing current conditions. It’s all good. It’s all stable. And it all agrees with Tony’s assessment.

Iko Ward:  You guys can do it too if you want. cbi.iq; CNN Money World Markets; ISX home page: DFX Crude Oil Chart; KITCO Spot Gold Chart; Forex (but unless you want to pay 5K just find a secxondary forex chart platform); and Bloomberg home page.

Believer2 :BJ, do you know why things are so quiet right now? Not hearing any intel today

Blackjack7 : Believer from my people everything is done, just waiting for that flip of the switch…pushing a button, flipping a switch, it’s all the same to me JUST DO IT!!!!

zzzzzzzz :
Turn the crank… pull the trigger… dot the I… cross the T… throw the party… push the button… start the process… open the doors… release the Kraken… flip the switch… WE ARE READY!!!
….
JD:  BJ any ideal who or what is holding it up

Blackjack7
:if you don’t want unrest and rioting because of promises that have been made and not kept then something has to be done…this restores faith in the people

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GodBlessTony:  Respected Financial Guru, Bill Holter says The Banking system is coming down 07.28.15 Audio

This is good stuff.  Lots here, something for everyone:  Bail-ins, Bond Bubble, Dollar’s future, China’s Gold reserves and the future of gold and silver.  He mentions “Reset” and and asset backed Dinar towards the end.  Big picture investment advice.

Good listen for anyone who owns dollars. 

http://oneradionetwork.com/geo-politics/bill-holter-the-banking-system-is-coming-down-july-28-2015-2/

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Dinar Updates: 

tman23  “the Government’s decision to reduce the salaries of officials and senior staff closer to attempt a radical processing prosthesis for the problem…” 

The salaries of the GOI were ridiculous…One of the IMF concerns/conditions with regard to Iraq GOI was salaries…to be adjusted.

*************

BGG  …they are meeting – over what to do about Maliki…they come back, not much gets done – deal with Maliki – move on…  

Q: [are you saying Maliki issue is more important right now for them to decide than voting on the laws? because once Maliki is canned, the laws will be a whiz to pass?!] 

BGG  no question – that is what I am saying…he has played the “obstructionist” thus far. He goes – things move!!
KTFA:

harvestime :  According to what is written (link below) tarriffs will be collected without exception on August 1, 2015. LINK

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Walkingstick   » July 28th, 2015, 5:24 pm 

USForex Rolls Out Global Currency Transfer App

July 28, 2015 by Melanie Macinas

International money transfer provider USForex proudly launches the newest innovation in currency transfer apps—the Forex Money Transfer.

This fully transactional app allows consumers to send money using their mobile devices in 48 currencies worldwide while on the go.

The app complements the lifestyle of USForex’s customers, many of whom make regular currency transfers for several reasons including buying second homes, purchasing goods and services, paying mortgages and tuition, and family support.

Designed to be user-friendly and intuitive for money transfers, the all-in-one app gives users complete control over the payment process including international transfers and repeat payments.

Users can even review previous transactions and track current payments with the app, as well as check market exchange rates, view currency charts, set rate alerts and read daily market commentaries.

Forex Money Transfer also has a global, 24-hour customer support and live rate alerts for more than 48 currencies.

“In launching Forex Money Transfer, we’re seizing on the massive shift to mobile for the consumption of financial services,” commented Richard Kimber, CEO of USForex. “It’s a significant, new transaction channel for our current and future customers and offers additional scale to our business. Globally, mobile accounts for around 17% of all new registrations – with the launch of the app, we expect this figure to grow substantially.”

Forex Money Transfer is now available for download at Google Play and App Store for free.

https://paymentweek.com/usforex-rolls-global-currency-transfer-app/

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TY1:
   Frank,If the path for the Monetary reform is RI and then RV then would the IQD not have to come out at $3.22 since that was the last value prior to the program rate? or is it 1:1 then RI then RV?

Thanks for all your knowledge and time educating!

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Thunderhawk  » July 28th, 2015, 7:29 am  Backdoc Alert

Cameron to Fast-Track Brexit Referendum to June 2016 – Reports

British Prime Minister David Cameron has decided to fast-track the referendum on the nation’s EU membership to June 2016 to increase his bargaining power with Brussels as London seeks to reform the union, the Independent’s sources in the government said Sunday.

In May, Cameron promised to hold a referendum on whether Britain should stay in the 28-nation European Union by the end of 2017. He maintains that London should be part of the bloc, albeit on renegotiated terms.

Senior sources in the UK government told the Independent on Sunday that Cameron will announce the June 2016 date in his keynote speech at the Conservative Party conference in Manchester in October.

The Prime Minister reportedly calculated that Brussels will be more in the mood to grant changes to EU legislation and work benefits for EU migrants from outside Britain after the bailout talks with Greece, where the EU leadership showed it was ready to go the extra mile to avoid an EU exit.

Anti-EU sentiment has risen in the United Kingdom following accusations that the nation’s welfare has suffered greatly from an unrestrained inflow of migrants from less affluent EU member states.

http://sputniknews.com/europe/20150726/1025053596.html

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Walkingstick  » July 28th, 2015, 7:37 am  Backdoc Alert

US Fed Leak on Rate Hike Suggests a Murky Economic Landscape

On Friday, the US Fed admitted to have mistakenly released its rate hike projections, surprisingly modest and suggesting the regulator is aware of a less optimistic situation in the US and global economy.

On Friday, the US Federal Reserve accidentally released its confidential staff-only projections for this year’s planned increase in US borrowing costs, which turned out to be much more modest than previously speculated. The leak, besides stirring concern on Capitol Hill over the information security of the regulator’s internal communications, also had a short-lived market effect, with yields on US Treasuries briefly dropping.

The US Fed said on Friday its confidential Federal Open Market Committee (FOMC) meeting of 16-17 June were published by mistake on 29 June. Such documents are usually disclosed to the public five years after the original date of event, along with the FOMC meetings transcripts.

The rate hike projections as outlined in the leaked document are seen at 0.35% in federal borrowing costs somewhere in Q4, up from the current 0-0.25%. Despite the Fed insisting the figures do not represent the policy makers’ viewpoint, the disclosure if effectively putting into question the September hike itself. The scale of the hike is also far below the anticipated rise in benchmark interest rate to some 0.625% by the year’s end.

That said, the Fed, being aware of the mediocre growth in the US economy, and the sluggish global economic expansion, might be planning only a very symbolic tightening in its monetary policies, wary of its imminent negative effects of a hike for the US economy.

The leak does not present enough information on whether the rise in borrowing costs to 0.35% will represent only a quarterly rate increase, or there are actually two successive hikes planned by the year’s end. While the lending rate of 0.35% is a possibility for Q3, a second hike is possible in December.

The Fed leak triggered a short-lived rally in US Treasuries value, with yield on the two-year security fallen 0.02% to 0.66% on Friday, only to rebound later during the day to 0.68%.

Such papers as the one leaked are usually compiled by the US Fed staff economists prior to policy meetings based on the across-the-board evaluation of the US and global economic environment. Commodities prices, durable goods market, inflation estimates, GDP projections, labour market and various sectors of the real economy are all taken into account. That said, such a modest increase in the lending rate suggests the Fed staff is not very optimistic of the US and global economic outlook, at least, till the end of this year.

As there is still little clarity regarding US economic performance in the coming months and the Fed’s subsequent actions, the Fed leak does not change much in the market situation. Less clarity means higher demand for safer assets, and that is where the Treasuries bulls are reaping benefits. The US dollar is also on a winning streak until the Fed announces their exact date of a rise in borrowing costs.

http://sputniknews.com/business/20150725/1025047393.html

So Much For A New Era Of Responsibility By Simon Black

July 28, 2015  Notes From The Field

So Much For A New Era Of Responsibility

“Even now that Quantitative Easing has supposedly ended, the ratio between the Fed’s balance sheet and the Dow Jones Industrial Average remains nearly constant at 253x, with a standard deviation of just 1.5%.”

Aritzo, Sardinia, Italy

High up in the mountains of central Sardinia, it’s hard to even think about finance.

The weather is perfect. Sunshine abounds. The vistas are absolutely incredible. The food is amazing. This is definitely one of the nicest places I’ve ever been.

And yet it’s almost impossible to ignore the constant gyrations in global finance.
~~~
What’s happening in China is nothing short of astounding, seeing the depths to which a desperate government is willing to go to bail out a broken system and maintain the status quo.

You have to hand it to the Chinese– they clearly don’t give a *** about subtlety.

In the US, market manipulation has taken on a much more sophisticated approach.

It caught my attention last week that the Federal Reserve’s balance sheet is still within 0.3% of its all-time high.

All the fanfare about Quantitative Easing coming to an end, and the Fed cleaning up its balance sheet, turned out to be a load of bull.

When the Fed entered the financial crisis in 2008, its balance sheet was roughly $900 billion.

At its peak, its balance sheet totaled $4.5 trillion. Today, it’s still at $4.5 trillion.

So Much For A New Era Of Responsibility.

But to give you a sense of how closely tied the Federal Reserve is to financial markets in the US, this morning I pulled the data and plotted the two together.

This chart shows the relationship between the size of the Federal Reserve’s balance sheet and the Dow Jones Industrial Average since the start of the crisis in late 2008:

Fed-DJIA-data
Picture
You can see that the market stays within a tight range, and as Quantitative Easing played out over the years, that range became even tighter.

Even now that Quantitative Easing has supposedly ended, the ratio between the Fed’s balance sheet and the Dow Jones Industrial Average remains nearly constant at 253x, with a standard deviation of just 1.5%.

That’s a fancy way of saying that, whether intentional or not, the Fed is completely dominating the US stock market.

It’s the same story with mortgages. Treasury bonds. And just about every other major asset class in the US.

Which means that any shrinkage of the Fed’s balance sheet will drag down markets with it.

The Fed may not be as brash as China, but their unsustainable support for financial markets is just as precarious.

This is a time for extreme caution; there’s simply been too much pressure built up in the system, and there’s no way of knowing when or where it’s going to be released.
Over a century ago in the early 1900s, the world was in an equally dire predicament.

Germany was the brand new kid on the block (having been officially formed in 1871), but was already among the greatest powers in Europe.

Russia, France, and Britain were all still dominant powers. Austria-Hungary and the Ottoman Empire were in serious decline, but were still forces to be reckoned with.

History tells us that any time there’s a clear shift between major powers, tension and conflict arise. And 100 years ago was no different.

By 1914 everyone in Europe was preparing for war. But nobody knew exactly what the cause would be.

Out of all possible scenarios that came across military planners’ desks, it ended up being a 19-year old Serbian named Gavrilo Princep who kicked the whole thing off.

He was just a kid—an obscure, unknown kid—who pulled the trigger that killed the Archduke, lighting the match that blew up the powder keg.

People certainly sensed that war was in the air. But no one would have ever predicted that it would start with Gavrilo Princep.

Similarly, we can look around the world and feel like crisis is in the air. But will it come from China? Greece? Puerto Rico?

Likely none of the above.

Any match that lights the system ablaze will probably come from some obscure corner of the Matrix, at a time and place that no one can possibly divine.

Until tomorrow,   Simon Black   Founder, SovereignMan.com

The Salary Reduction

Tman23:   Article quote – “the Government’s decision to reduce the salaries of officials and senior staff closer to attempt a radical processing prosthesis for the problem…”

The salaries of the GOI were ridiculous…One of the IMF concerns/conditions with regard to Iraq GOI was salaries…to be adjusted.

What to do about Maliki

BGG:   …they are meeting – over what to do about Maliki…they come back, not much gets done – deal with Maliki – move on…

[Q.  are you saying Maliki issue is more important right now for them to decide than voting on the laws? because once Maliki is canned, the laws will be a whiz to pass?!]

A.  no question – that is what I am saying…he has played the “obstructionist” thus far. He goes – things move!!