<p>ECB Deputy Governor Guindos: The Euro Area Is Now Facing A Challenging Outlook</p><p><a target=“_blank“ href=“https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp220915~84012f3dea.en.html“ target=“_blank“ rel=“nofollow“>Speech by Luis de Guindos, Vice-President of the ECB, at the CIRSF (Research Centre on Regulation and Supervision of the Financial Sector) Annual International Conference 2022 “The future of the EU financial system in a new geo-economic context”</a></p><p>Some highlights:</p><ul><li>Very High <a target=“_blank“ href=“https://www.cfdmagnates.com/fl/education/terms/edit-term/ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1″ class=“terms__main-term“>Inflation</a> Is Dampening Spending And Production </li><li>Period Of Heightened Uncertainty ‚Here To Stay‘ </li><li>Price Pressures Have Continued To Strengthen And Broaden </li><li>Monetary Policy Needs To Walk A Fine Line To Get It Right </li><li>Depreciation Of The Euro Also Adds To These Inflationary Pressures </li><li>Growth To Slow ‚Substantially'</li></ul><p>All very sober, as one would expect given the current environment… How long until the ECB start cutting into the hikes?? </p>

This article was written by Ryan Paisey at forexlive.com.

<ul><li>Rate hike has been well transmitted to money markets</li><li style=““ class=“text-align-justify“>Appropriate monetary policy should take into account that energy shock remains a dominant force</li><li style=““ class=“text-align-justify“>Eurozone inflation drivers are different compared to demand-driven overheating dynamics</li><li style=““ class=“text-align-justify“>Inflation dynamics associated with energy shock component are what we are exposed to</li></ul><p style=““ class=“text-align-justify“>It’s a fair point but so long as energy prices are soaring and supply-side issues are yet to return back to pre-pandemic conditions, there is going to be spillovers to core prices and that will in turn keep inflation more embedded in the economy. But I guess Lane is making a point that monetary policy will eventually reach a point where it will follow the path of energy prices in general – not now though.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior -0.8%</li><li>Market index 255.0 vs 258.1 prior</li><li>Purchase index 198.1 vs 197.8 prior</li><li>Refinancing index 532.9 vs 556.4 prior</li><li>30-year mortgage rate 6.01% vs 5.94% prior</li></ul><p style=““ class=“text-align-justify“>The standout detail is that the average interest rate for the most popular US home loan rose above 6% for the first time since 2008, more than doubling the level it was a year ago. Mortgage activity continued to decline, largely as a result from a fall in refinancing this week as the housing sector continues to feel the impact of higher rates in general. And we can still look forward to another 75 bps rate hike by the Fed next week. Fun.</p><p>/<a target=“_blank“ href=“https://www.forexlive.com/terms/u/us-dollar/“ target=“_blank“ id=“fddda8f4-d5f8-4ee4-8e34-3760ed062f3c_1″ class=“terms__main-term“>US dollar</a></p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>With Europe having to play catch up to the washout in Wall Street yesterday, US futures are finding some relief at least but the question seems to be how long can it last?</p><p style=““ class=“text-align-justify“>The snapshot of the performance of US stocks yesterday was abysmal to say the least with the S&P 500 closing down 4.3%, Nasdaq down 5.2%, and the Dow down 3.9% at the end of the day. For the latter, it is the lowest daily close since 18 July while the former two are closing in on their 6 September lows respectively.</p><p style=““ class=“text-align-justify“>In the case of the S&P 500, that coincides with the 61.8 Fib retracement level of the bounce from June to August near 3,900. The confluence of support levels will make it more interesting, with a break below that likely to set off the next downside leg for equities.</p><p style=““ class=“text-align-justify“>For now, there is some bit part relief with S&P 500 futures up 0.5%, Nasdaq futures up 0.6%, and Dow futures up 0.4%. However, with US PPI data and Wall Street set to enter the fray later, the picture might easily turn around if Fed fears are reignited in the second-half of the week.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>If Tokyo were to intervene, it will do so swiftly and without pause</li><li>Usually will not confirm if it had intervened, even after doing so</li><li>No comment on BOJ rate check</li><li>Will not rule out any options (when asked about chance of FX intervention)</li><li>Government watching FX moves with high sense of urgency</li><li>If yen continues such moves, we will take necessary action</li></ul><p style=““ class=“text-align-justify“>They have certainly stepped up the offensive in terms of jawboning the market, with officials coming out today in full force pretty much. That said, the rhetoric is getting a bit tiresome rather quickly considering the frequency and that might see markets shrug off the threats after a while. In my view, this is the limit to their verbal intervention and that seems to be around the 145.00 mark for USD/JPY.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior +0.7%</li><li>Industrial production -2.4% vs +0.4% y/y expected</li><li>Prior +2.4%</li></ul><p style=““ class=“text-align-justify“>That’s a big miss on estimates as euro area industrial output slumped heavily in July. Looking at the details, production of capital goods fell by 4.2%, durable
consumer goods by 1.6% and intermediate goods by 0.8%, while production of energy rose by 0.4% and nondurable consumer goods by 1.2%.</p>

This article was written by Justin Low at forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-on-the-backfoot-awaiting-us-cpi-data-20220913/“>Dollar on the backfoot awaiting US CPI data</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eu-reportedly-unlikely-to-cap-price-of-russian-gas-20220913/“>EU reportedly unlikely to cap price of Russian gas</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-august-nfib-small-business-optimism-index-918-vs-899-prior-20220913/“>US August NFIB small business optimism index 91.8 vs 89.9 prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-payrolls-change-71k-vs-73k-prior-20220913/“>UK August payrolls change +71k vs +73k prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-august-final-cpi-79-vs-79-yy-prelim-20220913/“>Germany August final CPI +7.9% vs +7.9% y/y prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/spain-august-final-cpi-105-vs-104-yy-prelim-20220913/“>Spain August final CPI +10.5% vs +10.4% y/y prelim</a></li></ul><p>Markets:</p><ul><li>EUR and JPY lead, USD lags on the day</li><li>European equities higher; S&P 500 futures up 0.7%</li><li>US 10-year yields down 4.4 bps 3.317%</li><li>Gold up 0.4% to $1,730.43</li><li>WTI crude up 1.5% to $89.11</li><li>Bitcoin up 0.6% to $22,551</li></ul><p style=““ class=“text-align-justify“>European trading today was more or less a placeholder as we count down to the US CPI data release later today.</p><p style=““ class=“text-align-justify“>The dollar is on the backfoot as positioning flows ahead of the key risk event weigh on the currency while stocks are higher as risk sentiment looks more positive. EUR/USD moved up from 1.0135 to 1.0180 while USD/JPY slipped from 142.40 to 141.90 as Treasury yields are also looking a fair bit heavy during the session.</p><p style=““ class=“text-align-justify“>GBP/USD nudged higher from 1.1690 to 1.1730 as the UK unemployment rate hits a 48-year low, though pay growth – in real terms – continues to slide at an alarming rate so that is something to be wary about.</p><p style=““ class=“text-align-justify“>Elsewhere, USD/CAD nudged lower from 1.2980 to 1.2955 and AUD/USD moved up from 0.6885 to 0.6915 on the session as equities are also positioning higher going into the main event.</p><p style=““ class=“text-align-justify“>CPI is the new NFP now and it’s going to be a real fun one in just over 30 mins‘ time.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>There’s not much in terms of headlines driving markets today but we are seeing the dollar retreat amid positiong flows ahead of the key risk event later in the day. EUR/USD is now up 0.5% to 1.0170 levels as buyers look to build on the break yesterday above the swing region resistance at 1.0075-90:</p><p style=““ class=“text-align-justify“>There is still scope for the rally to extend towards the 100-day moving average (red line) at 1.0333, so just be wary of that in the aftermath of the US CPI data later this week.</p><p style=““ class=“text-align-justify“>Meanwhile, GBP/USD holds higher by 0.4% at 1.1720 levels as seen earlier <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-holds-higher-after-uk-unemployment-rate-hits-48-year-low-20220913/“ target=“_blank“>here</a>. And USD/JPY is down 0.5% to 142.18 as it continues to toy in between the 100 and 200-hour moving averages at the moment:</p><p style=““ class=“text-align-justify“>Elsewhere, with the risk mood being more positive for now, commodity currencies are also holding a slight advance against the dollar. USD/CAD is down 0.3% to 1.2960 while AUD/USD is up 0.3% to 0.6910 on the day currently.</p>

This article was written by Justin Low at forexlive.com.

<p class=“MsoNormal“>Investing is perhaps
one of the best and most sustainable methods to <a target=“_blank“ href=“https://fiatvisions.com/“ target=“_blank“>grow money</a> and accomplish your important
financial goals in life.</p><p class=“MsoNormal“>To invest, you will
need to have some capital for that. If you don’t have enough to make your first
investment, you can start micro-investing, which lets you contribute as low as
$5 to $10 per trade or as much as you can currently afford.</p><p class=“MsoNormal“>Micro Investing
Explained</p><p class=“MsoNormal“>In a nutshell,
micro-investing is the method of constantly depositing, saving, and allocating
micro amounts of money into your chosen investment.</p><p class=“MsoNormal“>Instead of putting a
considerable amount of money instantly, you make small contributions, including
spare changes, every day to markets via exchange-traded funds (ETFs) or
fractional shares and often done through a platform or an app.</p><p class=“MsoNormal“>Such gradual, small
contributions make this method interesting to investors. You can earn and
diversify your investments without putting a significant amount of your
hard-earned money on the line.</p><p class=“MsoNormal“>Consistency is key to
micro-investing. The small investment amounts you make will only build up if
you’re investing them daily.</p><p class=“MsoNormal“>Ideal Age to Micro
Invest</p><p class=“MsoNormal“>Investors of all ages
can practice micro-investing, although it is most suitable and beneficial for
young market players between the age of 18 and 25.</p><p class=“MsoNormal“>That’s because
investors within that demography often engage with digital or online
transactions, and their regular spare change contributions can add up to a
substantial amount.</p><p class=“MsoNormal“>So if you’re a young
individual looking to enter the investing space but unsure where to start,
micro-investing can provide you with a straightforward way to invest without
requiring you to change your lifestyle.</p><p class=“MsoNormal“>Getting Started with
Micro-Investing</p><p class=“MsoNormal“>Overall, anyone can do
micro-investing. You only need a debit account and sign up with a platform or
an app that mainly provides micro-investing services.</p><p class=“MsoNormal“>Spare change investing
is one ideal way to start micro-investing. This method involves automating the
spare changes from your online transactions.</p><p class=“MsoNormal“>For example, if you
paid for your groceries through a debit card, you can use a round-up investment
app to round up the amount automatically to, let’s say, the next ten and then
invest the spare change on your behalf.</p><p class=“MsoNormal“>Micro-investing can be
your starting point to understanding the complexities of investing. Or, it can
serve as another account in addition to your existing investment portfolio.</p><p class=“MsoNormal“>Whether you treat it as
your starting point or a secondary account, micro-investing can accelerate your
journey towards your financial goals.</p><p class=“MsoNormal“>Factors to Consider</p><p class=“MsoNormal“>As mentioned above,
consistency plays a crucial part in micro-investing. The small investments you
make will only build up if you’re investing them on a daily basis.</p><p class=“MsoNormal“>However,
micro-investing may not be as efficient as with small financial goals if you
aim to achieve big long-term financial goals such as retirement or buying a
house. Still, it makes for a good starting point.</p><p class=“MsoNormal“>So in <a target=“_blank“ href=“https://fiatvisions.com/Registration“ target=“_blank“>micro-investing</a> for your big,
long-term goals, your small investments should become more regular and larger
in the long run. If you store your money in a savings account or set it aside
for future investment, note that it could lose value over time.</p>

This article was written by ForexLive at forexlive.com.

<p class=“MsoNormal“><a target=“_blank“ href=“https://maxiwyse.com/“ target=“_blank“>Investment trusts</a> have a long history, being
considered closed-ended investment vehicles that hold a specific number of
shares.</p><p class=“MsoNormal“>If you’re seeking a
portfolio with the right mix of assets, investment trusts can provide you with
that. Several investment trusts have proven their ability to drive dividend
growth for five decades, while others have time and again fared better than some
of the open-ended funds. </p><p class=“MsoNormal“>Investment Trusts
Explained</p><p class=“MsoNormal“>Investment trusts or
closed-end trusts are collective investments that pool investors’ money to hold
a diversified portfolio. They are usually publicly traded companies that aim to
turn a profit by buying other assets.</p><p class=“MsoNormal“>The number of
securities in a portfolio can vary with an investment trust. Sometimes, the
portfolio can have around 30 different assets, but it can also consist of
hundreds in one or more industries.</p><p class=“MsoNormal“>The ability to make
decisions related to the investments falls on the fund manager, who is also
tasked with ensuring that the trust’s investment goal is met.</p><p class=“MsoNormal“>Diving Deeper into
Investment Trusts</p><p class=“MsoNormal“>Investment trusts are
also called closed-end trusts because they put money into a specific number of
shares. They are quoted on the London Stock Exchange (LSE), allowing market
players to buy/sell shares at real-time prices, just like shares in regular
companies.</p><p class=“MsoNormal“>Fund managers have a
specific amount of investment dollars but can also borrow to make another
investment on top of the original one. Such a strategy is known as gearing,
which increases fund managers’ <a target=“_blank“ href=“https://maxiwyse.com/Registration“ target=“_blank“>potential
returns</a> as well as their potential losses.</p><p class=“MsoNormal“>Moreover, gearing is
not widely used in investment funds. In fact, many types of investment funds
are prohibited from using this method. One reason is that gearing would allow
funds to generate extra cash from investors if they’re open-ended.</p><p class=“MsoNormal“>Pros and Cons of
Investment Trusts</p><p class=“MsoNormal“>The pros of using
investments trusts are as follows:</p><p class=“MsoListParagraph“>· Diversification</p><p class=“MsoNormal“>As mentioned above,
investment trusts pool investors’ money so they can hold a diversified
portfolio which is usually ready-made and handled by experts. That saves
investors time and money that would have been otherwise spent on buying
individual shares in different companies.</p><p class=“MsoListParagraph“>· More Investment Options</p><p class=“MsoNormal“>Investment trusts have
access to a broader set of investments than funds since they can also invest in
unlisted assets, which may help amplify returns.</p><p class=“MsoListParagraph“>· Real-Time Trading</p><p class=“MsoNormal“>Unlike funds that are
forward priced, investment trusts allow Investors to buy/sell assets at live
prices and set stop loss orders to minimize their potential losses if the price
unexpectedly makes a sharp drop. </p><p class=“MsoListParagraph“>· Stable Income Source</p><p class=“MsoNormal“>Investment trusts are
an excellent option for investors looking for a reliable and stable source of
income. That’s because investment trusts can tap on reserves when the situation
in the market seems bleak.</p><p class=“MsoNormal“>Any investment is not
without risks. Here are the cons of using investment trusts:</p><p class=“MsoListParagraph“>· Gearing</p><p class=“MsoNormal“>Gearing is also a double-edged
sword that makes investment trusts more volatile than other funds. This
strategy can raise the returns but also increase the losses.</p><p class=“MsoListParagraph“>· Annual Management Fees</p><p class=“MsoNormal“>Investment trusts can
charge an annual management fee of 2% or higher, compared to active funds’ 0.5%
– 1% yearly fee. Such costs can be inconvenient as they can gradually reduce
the portfolio’s value.</p><p class=“MsoListParagraph“>· Valuation</p><p class=“MsoNormal“>While investment trusts
can access unlisted securities, the value of such assets may not be specific
and may only be determined quarterly. Therefore, relying on the net asset value
will not exactly help investors make a final decision.</p>

This article was written by ForexLive at forexlive.com.