Greenback Slides 💵 Rupee Roller-Coaster 🎢

by | 11 Jan, 2019

 

1. Greenback Slides  

That’s right, the Dollar dipped lower yesterday following Jerome Powell’s comments about a patient monetary policy strategy in 2019. With inflation stable, investors are welcoming the pause in the rate hike cycle to give the markets some much-needed breathing room to adjust to a crazy few months.

During the Wild West sell-off from October-December last year, the Dollar became somewhat of a safe-haven, outpacing its peers and even gold at one point as volatility went through the roof. The Dollar index appreciated 4.3% in 2018, but the prospect of a prolonged pause in rate hikes has made analysts turn bearish on the Dollar.

Their view is that the slowdown in global growth will prohibit the Fed from hiking rates again in 2019. This leaves the potential for an even greater softening in the Greenback, so long as inflation stays manageable within the target range.

For now, the markets can breathe a sigh of relief and ice some of the bruises from a rough few months. Confidence has tentatively returned to equity markets as developed and emerging markets alike benefited from positive developments in the trade talks. Long may it last!

 

2. Rupee Roller-Coaster

Roller-coaster doesn’t even really cut it. Perhaps pinball is a more accurate description of the Rupee’s back and forth movements between the worst and best-performing Asian currency.

In the space of two weeks India’s currency has gone from the worst, to the best, to the worst again, giving long-term investors a serious headache. Instead, investors are piling into the Chinese Yuan, Thai Baht and Indonesian Rupiah as trade talk optimism and a pause in the rate hike cycle boosts emerging markets across the board.

The Rupee was left unloved thanks to a strong rebound in the price of oil (India’s top import) and an expensive bailout for farmers ahead of general elections in May.

Oil’s wild price fluctuations have exposed India’s dependency on it for growth, and with more OPEC supply cuts in the pipeline, there may yet be another loop for the Rupee to endure.

India also faces domestic uncertainty regarding the ruling party’s ability to hold onto power ahead of the next general election. Investors are worried that the government may widen its fiscal deficit to gain back some popularity by spending their way back into the people’s good books.

Either way, we’re all in for quite a ride in 2019!

Today we are watching…

1. General Electric (#ge)

General Electric seems to have turned its fortunes around in 2019 after a vicious 56% drop-off in its stock price last year. Having started the planning process for its healthcare IPO and reduced the risk of a liquidity crisis, GE is looking far more promising. Analysts have even upgraded the outlook from negative to positive. Keep up the good work, GE.

2. Electronic Arts (#elecarts)

Electronic Arts has been mounting an epic comeback this week, rising 12.95%. Having taken a 25% beating in 2018 thanks to the delayed release of Battlefield V, and the growing popularity of battle-royale games, the firm is set to boost its 2019 performance with two important games. Battlefield and Anthem will be the company’s best hope of diverting players back to EA and analysts are feeling positive about its prospects.

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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