Five most important news to start your day. These events are very likely to influence the market and trigger exchange rate fluctuations. Read to stay informed.
Major Australian Banks Downgraded
The Australian housing bubble starts to affect the lives of regular Australians and the state of the national economy. The credit rating of Australia’s four biggest banks — ANZ, Commonwealth, NAB, and Westpac — has been downgraded by Moody’s. According to the Australian Prudential Regulatory Authority, the share of risky mortgage loans in the assets of the above-mentioned banks should be decreased to mitigate the risks.
Stanley Fischer: More Needs to be Done
Stanley Fischer, Federal Reserve Board Vice Chair, warned the economists and politicians that more needs to be done to escape the upcoming crisis. According to him, a lot was already done and recent monetary measures taken by the Fed are good at coping with the upcoming recession but they are clearly not enough. The financial system of the United States is healthier and more stable than it was prior to 2008, according to Fischer. Stress tests for banks are one of the measures, proposed by him.
Record-Low Oil Prices Are Here to Stay
Oil prices stay at the record-low level. On Monday Brent futures traded at $46.91 a barrel, while U.S. West Texas Intermediate crude futures — at $44.20, the lowest since November 29. OPEC and other oil producing countries agreed on cutting the extraction by 1.8 million barrels per day but their initiative seems futile on the verge of the US shale industry boom. Increasing supply from the United States’ producers and sluggish demand pushed the oil prices down.
USD Appreciates Against JPY
Expectations of rising inflation and, as a result, interest rate hikes for the American currency helped the United States dollar reach its three-week high position against the Japanese yen. At the end of the trading session on Monday, the dollar traded at 111.68 yen. New York Fed President William Dudley is thought to be responsible when he announced that behavior of the labor market is likely to drive the inflation up.
Barclays under Investigation
Barclays and its four ex-bosses face criminal charges from the Serious Fraud Office in the United Kingdom. During the emergency fundraising of 12 billion pounds, that took place in 2008, an undisclosed transaction to Qatari investors drew the officials’ attention. Former CEO, former chief executive, former senior investment banker and ex-European head of financial institutions have been charged with conspiracy to commit fraud by false representation.
