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    Afternoon Report – Wednesday 7th August

    THE DAILY REPORT

    AFTERNOON REPORT

    TOP THINGS TO KNOW

    U.N. members sign mediation convention to settle trade disputes

    (Reuters 06/08/2019) - Members of the United Nations on Wednesday signed the Singapore Convention on Mediation, an agreement it hopes will make it easier to settle cross-border commercial disputes and stabilise trade relationships.

    The U.N. Convention on International Settlement Agreements Resulting from Mediation, its official title, was signed in Singapore by 46 U.N. members, including the United States and China. U.N. conventions are often named after the country or city where they are signed.

    The aim is to have a global framework that will give businesses greater confidence to settle international disputes through mediation rather than taking them to court, which can be obstructively time consuming and expensive.

    “This will help advance international trade, commerce and investment,” said Singapore’s Prime Minister Lee Hsien Loong at the signing ceremony.

    “Today, a group of states have come together to recommit ourselves to multilateralism and to declare that we remain open for business.”

    Mediation is already used to settle commercial disputes in jurisdictions like the United States and the United Kingdom but it is not globally accepted. It is hoped the convention will improve the credibility of mediation.

    “Uncertainty surrounding the enforcement of settlement agreements had been the main obstacle of the greater use of mediation,” said UN Legal Affairs Assistant Secretary-General, Stephen Mathias.

    “The convention sets the standards for enforcing and invoking settlement agreements, the requirements for reliance on settlement agreements and the grounds for refusing to grant relief.”

    The naming of the convention is a coup for tiny Singapore, a city-state home to more than 130 foreign law firms that is vying to be an international legal hub as the number of commercial cross-border disputes rise.

    India Delivers Rare 35 Basis-Point Cut to Spur Economy

    (Bloomberg 07/08/2019) - India’s central bank delivered a bigger-than-expected interest rate cut, ratcheting up measures to support a slowing economy.

    The repurchase rate was reduced by 35 basis points to 5.4% -- the lowest since 2010 -- in a decision predicted by just one of 40 economists surveyed by Bloomberg. The Monetary Policy Committee kept its stance accommodative, which means rate increases remain off the table.

    “Domestic economic activity continues to be weak, with the global slowdown and escalating trade tensions posing downside risks,” the central bank said in a statement Wednesday. “Addressing growth concerns by boosting aggregate demand, especially private investment, assumes the highest priority at this juncture.”

    The Reserve Bank of India has been the most aggressive in Asia in cutting interest rates this year to boost growth from a five-year low and spur investments. While the Federal Reserve’s rate cut last week opens the door for more easing, escalating tensions between the U.S. and China are also prompting some policy makers in the region to act to support their economies.

    The 35 basis-point cut, voted for by four of the six members of the MPC, comes on a day when New Zealand too surprised with a bigger-than-expected easing. The Philippines is forecast to lower borrowing costs on Thursday for a second time this year.

    The central bank cut the economy’s annual growth forecast again. It expects growth for the year that began April 1 at 6.9%, down from 7% seen in June. It forecast inflation to remain benign -- at 3.1% in the fiscal second quarter -- and well under the central bank’s 4% medium-term target for the rest of the year.


    TRADE OPPORTUNITIES

    Below are Trading Central's Intraday preference recommendations. Short (SELL) positions and long (BUY) positions have two targets issued which may be used as take profit levels. Above or below a certain figure indicates the pivot level which may be used as a level for stop loss.

    GBPUSD
    30 Minute – Long positions above 1.2140 with targets at 1.2190 & 1.2210.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    USDJPY 30 Minute – Short positions below 106.35 with targets at 105.85 & 105.50.

    GBPNZD Daily – Our next up target stands at 2.0193.

    GOLD Daily – Long positions above 1430.00 with targets at 1500.00 & 1565.00.

    SILVER Daily – Long positions above 15.9500 with targets at 16.6500 & 17.0000.

    ASX 200 Daily – Short positions below 6715.00 with targets at 6320.00 & 6210.00.

    NZDCAD Daily – The downside prevails as long as 0.8867 is resistance.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    Economic Announcements
    (times in AEST)

    Risk Warning
    Trading FX and CFDs involves a substantial degree of risk and should only be undertaken with risk capital. Please consider our PDS and FSG before trading with us. A copy can be found on our website www.forexct.com.au. Forex Capital Trading Pty Ltd provides general advice that does not take into account your objectives, financial situation or needs. Investors do not own or have rights to underlying assets. Forex Capital Trading Pty Ltd is regulated by ASIC (AFSL 306400), ABN (69119086270). Forex Capital Trading Pty Ltd’s AFS license and Australian regulation only applies to the financial services being provided in Australia only.

    Posted: August 07, 2019 | 4:30 PM