24/ 01/ 2017

The Lunch Forum

"Zahir Moghal" Managing Partner of Delma Exchange hosted the first "Lunch Forum" with co hosts "Stephen Foster" Managing Partner of Al Tamimi & Co and "Sudhir Bettadapura" Partner of PKF UAE, on 24th Jan 2017 at Zuma, Abu Dhabi.

24/ 01/ 2017

Draghi and Trump cause chaos

Yesterday in Brussels, Draghi has threatened Italy with an almost certainly unpayable bill if the country's citizens take the democratic decision to quit the troubled Euro. Draghi said countries looking to axe the Euro will have to pay back all their debts in one go before they can leave, making such a move massively unaffordable.

Early morning today, President Trump announced that he would bring manufacturing jobs back to America as he said that he will withdraw from TPP (Trans Pacific Partnership) and impose a 35% border tax on companies who want to have their production factories under TPP.

His comments sent US Dollar index and Ten year US treasury yields down as much as 8 basis points. This also caused broad based Dollar sell off in Asian markets which favored rival currencies such as EUR and GBP, where EUR/AED pair moved up by 1% and GBP/AED pair by 1.5%.

22/ 01/ 2017

Week Ahead | Trumps America First

Donald Trump was sworn is as the 45th president of the United States. The world waits to see Trump’s first moves in light of his promises to drastically change US policies in nearly every field. In his inauguration speech, the most notable catchphrase Trump used was "America first," along with "buy American and hire American”. Hence rest of the world will be focusing on Trump and his actions towards global economy.

Dollar's weakness, however, has begun to fade during these past days, particularly after FED's Yellen said that the US Central Bank aims to take rates up to 3.0% by 2019, somehow anticipating a few rate hikes a year for the next three years.

19/ 01/ 2017

Confident Draghi to boost the EUR

US Dollar had a bad day on Wednesday, however the currency's rebound was then magnified by optimistic comments from Janet Yellen later in the evening. U.S. Dollar also shot higher with 10 year yields rising nearly 10bp, validating the reversal in market sentiment.

By Mid-day today, ECB will release decision on Interest rate and deposit rate.The European Central Bank kept interest rates unchanged in December but cut asset purchases to 60 billion euros per month, from the current 80 billion euros. Central Bank will likely leave its monetary policy unchanged, while Draghi is expected to offer a hawkish, confident speech which should provide positive support to EUR.