|By Marketwired .||
|May 13, 2014 12:13 AM EDT||
SINGAPORE, SINGAPORE -- (Marketwired) -- 05/13/14 -- In FXPRIMUS' Market Brief of The Week for 12 May, the brokerage firm's Senior Economist, Jimmy Zhu, questions the state of Euro in the near future.
Euro lower on ECB's pledge, Chinese stocks rallied on government to defend domestic equities expectation
Mario Draghi successfully talked down the euro in its monthly meeting, buy giving the strong signal that the central bank will act within the next 30 days. On the other hand, the 1-month ATM volatilities rose by 10% to 5.8625. The ECB welcomes the rising volatilities as it indicates the latest rebound since early April may be over.
EURUSD (white) vs. EURUSD 1-month ATM (green)
To view the figure accompanying this press release, please visit the following link:
As you can see the chart above, the euro-dollar hasn't ended the uptrend since the July last year. The recent rally was mainly due to the limited options the ECB can exercise to improve the subdued inflation. Even now, we do not expect much different after the Draghi's pledge last week. We mentioned a few possibility on the outcome of the next ECB meeting within 30 days last week, and it shows the "bazookas effect" was extremely low.
95% possibility of the coming ECB move next month - Cutting the benchmark lending rate to zero. But this is the least effective way to lift the inflation higher. The current lending rate at 0.25% has nearly no difference to zero, meaning another 25 bps cut will be a very symbolic move. Criticism will emerge again to argue the effectiveness of its objective, euro may go higher again.
40% possibility of the coming ECB move next month - Cutting the deposit rate to minus 0.25%. The possibility is higher now since Germany starts to backup more easing from the central bank. Increasing the defiance on those lenders could be one of the ways to discourage the institutions parking excess liquidity with the central bank. The single currency could test the 1.37 if this option is exercised.
10% possibility of the coming ECB move next month - Another round of Long-Term Refinancing Operation (LTRO). Previous LTROs aims to solve the liquidity problem and that isn't an issue now. Moreover, the effects of those previous LTROs have been less translated into the households and corporations; it will be the same again this time around.
Less than 5% possibility of the coming ECB move next month - Quantitative Easing. This is the most welcomed option but the chances for it to happen could be less than 5% based on the current environment. The main challenges are not from Germany at this moment, but it's the targeted market and feasibility. Asset-backed securities (ABS) and Mortgage-Backed Security (MBS) market are relatively small compared to the United States. Buying sovereigns in Core or Peripheral isn't the solution here as those bonds' yield spread has been widening to United States Treasury (UST). Besides that, what type of assets to buy and which countries to buy will be the next challenge.
EUR-USD 25 Delta 1-month reverse ratio currently stands at -0.5375, the level of -0.58 formed some support since Sep last year. It indicates the downside space might be capped at 1.3690. Before further action released by the ECB, euro-dollar could be reluctant to penetrate below this level.
China stocks rallied today, despite the momentum didn't transfer into the Aussie, led by commodity producers and financial companies, on speculation the government will take steps to bolster equities. Global policymakers' accommodative measure will encourage the investors to stay away with safe haven in the near term, USD-JPY might be benefited.
FXPRIMUS offers retail traders a level of trade execution, service quality and fund safety that are normally reserved only for the largest investors. Serving traders in 205 countries across 6 continents FXPRIMUS combines an unmatched level of fund safety with regular independent audits of company financials and Straight Through Processing, top notch execution with tight spreads, prompt and responsive customer support, ISO 27001 certification in Information Security, ISO 9001:2008 certification in Quality Management and an industry-leading trader toolset that includes free access to powerful trader tools. FXPRIMUS truly is The Safest Place To Trade.
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion...
Nov. 26, 2015 03:45 AM EST Reads: 688
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 26, 2015 03:00 AM EST Reads: 301
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Nov. 26, 2015 02:00 AM EST Reads: 183
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
Nov. 26, 2015 01:30 AM EST Reads: 430
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Nov. 26, 2015 01:00 AM EST Reads: 434
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, San...
Nov. 26, 2015 12:00 AM EST Reads: 521
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
Nov. 26, 2015 12:00 AM EST Reads: 483
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company Logz.io. In the past, he was co-founder of social-trading platform Currensee, which...
Nov. 26, 2015 12:00 AM EST Reads: 150
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
Nov. 26, 2015 12:00 AM EST Reads: 279
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Nov. 25, 2015 10:00 PM EST Reads: 344
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Nov. 25, 2015 10:00 PM EST Reads: 391
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 25, 2015 09:00 PM EST Reads: 366
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Nov. 25, 2015 08:30 PM EST Reads: 366
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application del...
Nov. 25, 2015 05:00 PM EST Reads: 302
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
Nov. 25, 2015 03:45 PM EST