Truly, the butterfly-like effect on the US economy as its interest rate rises after leaving its QE program will surely affect other economies and currencies aside from the Eurozone and Japan as the year progresses.

Naxxar, Malta -- (SBWIRE) -- 01/12/2015 -- The anticipated outburst of interest rates in 2015 seems to be a promising year for the United States and for the coming years. The strong shift in the monetary cycle would likely unleash more uproar in currencies and equities that increasing deviations in between the US, the Eurozone and Japan is likely to be expected.

Seeing the US economy enjoying its good health and continued growth as it enters 2015, will be further enhanced by the recent fall in oil prices that had affected the Russian economy and the strong dominance of greenbacks that had cut off other competing currencies – particularly Euro and Yen. With the sudden upturn of events in the world market, the US can confidently shrug off poor economic outlook and deliberately lowers unemployment levels since most of its demands can be generated domestically rather than relying on the exported products and services in the previous years; enabling US consumers to bag more money into their pockets.

The rise in the US interest rate will surely let loose further volatility due to Forex traders that will grab the opportunity to sell off USD to take profits. Though the Forex market has foreseen this event, they make their selves prepared for the changes that USD showed previously when it soared. In aims to lessen the damages that the US interest rate might inflict, the Forex manager in the international market will be forced to hold back their currencies and equities in fear of losing a share of export markets to various companies affected by the rise. Apparently, this would make the greenbacks a currency of choice for its strong economic fundamentals.

Though the UK is expected to beat US for being the first of the major companies to increase interest rate due to the progression in job creation, the growth will certainly undergo a gradual yet healthy pace. One of the reasons that many experts were eyeing for being the political uncertainty that UK faces as the election dawns, which will surely affect the GBP. The country's fragmenting political landscape with the rise of the Scottish National Party that aims to get independence from the UK and the UK Independence Party that wants United Kingdom to leave as part of Europe, without a doubt, would probably complicate things for GBP and may lead to a dangling parliament.

Another contributory factor that will weigh GBP and will remove any urgency to increase the interest rate is the lack of growth in the Eurozone. Insufficiency of exports prospect in the Channel had affected and kept the current UK account deficit to be at high levels. Moreover, the migration happening in the Eurozone also had kept a downward pressure on UK wages. Though there's a strong job growth, it only gave a modest gain to the UK.

Conversely, the European Central Bank will begin its quantitative easing programme in Q1 to increase inflation and expectations. Yet, ECB President Mario Draghi has been up opposed to 'deep division within the central bank and strong German reticence, which may lead to legal action'. And since the EUR is in the weaker position, the ECB will continuously support the common currency which would probably obliged other European central banks to keep pace with EUR's decline.

As the Eurozone heads to stagnation and deflation that will make debts in real value higher and increasing the strains in the borrowers; the ECB will still favor the move to QE because of lower energy prices that will help the Eurozone economy in aims to counteract the exports fails sanctioned against Russia and the Chinese' slowing economy. And once this tandem – lower energy prices and QE – works out, who knows that the Eurozone could make a comeback during H2.

With the Eurozone in full faith with the QE, this has likely made Japan in an increasingly desperate move. Japan's rapid ageing population has been seen to be the main cause why it can't grow sustainable with 250% debt to GDP due to lack of reforms. And increasing taxes to improve the fiscal position would only finance the government's expenditure, especially if the economy keeps on tumbling back into downturn.

Truly, the butterfly-like effect on the US economy as its interest rate rises after leaving its QE program will surely affect other economies and currencies aside from the Eurozone and Japan as the year progresses. And with these changes, people will certainly look for ways to survive from the economic turmoil it will generate.

About Lanova Investments
Lanova Investments' investment philosophy emphasizes the importance of compounding long term capital growth associated with equity investing while maintaining flexibility to shift asset allocations away from equities when our outlook for that asset class is highly negative. Depending upon the clients' individual needs, they actively manage the allocation of assets between stocks, bonds, and cash based on their risk and return expectations for each asset class. Their Investment Policy Committee uses several proprietary models in conjunction with years of industry experience to determine the optimal allocation.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

With this current diverging trend in most advanced economies - the loosening of the ECB and BOJ and the tightening of Fed in Forex managed accounts - it is still the dollar that will prevail and gain.

Naxxar, Malta -- (SBWIRE) -- 01/05/2015 -- Extension in the growing strength of the greenback is surely inevitable as it cuts off other major competitive market currencies like the Euro (EUR) and the Yen (JPY). Driven by the expected deviation in monetary policy, prevailing growth of GDP, the health of the global market, and the upcoming Fed decisions on interest rates. Competing currencies start to wonder as to when the good times will keep rolling for the U.S dollar to grip the no. 1 spot.

The resilience of the dollar in the world market garners the brightest spot among other major economies that the Q3 of this year's GDP showed an annualized growth of 3.5% which is far higher than other industrialized economies, hitting a seven-year high against the Japanese yen on its highest level since July 2007 and repeatedly have Russian rubles hit the all-time lows.

The strength of the greenback today can be attributed to the wrap up of Fed to its long-running and highly unorthodox economic -stimulus program. That in the recent years, the US had experienced major recessions and weakening currency due to a torrent of dollars spilling into global financial market. However, with US exit from the quantitative easing efforts and pullbacks, the world market will be generally be under the prolonged period of US dollar dominance.

Furthermore, Goldman Sachs clarifies that the 'expectations that USD strength will extend remains a core element of their macro and market views and that the viewed movement in the context of real USD will still move modestly in the post-Bretton Woods era'. They advised clients to stay 'strategically bullish' on the dollar in 2015 as they see more 'glory days' for the greenback.

Yet, as the US leaves the QE behind, the European Central Bank (ECB) is likely expected to begin their own quantitative easing program in aims to combat potential deflation and shove the slumping growth in the Euro zone with the possibility of intensifying the downward pressure on the common currency. While the Bank of Japan (BOJ) surprised markets as it broadens its own monetary-expansion program to help push the Yen down to 120 to the dollar by the end of 2015.

With this current diverging trend in most advanced economies - the loosening of the ECB and BOJ and the tightening of Fed in Forex managed accounts - it is still the dollar that will prevail and gain. The fact that no other currency was able to rival USD to the no.1 position, that the Euro was battered by the multi-year sovereign-debt crisis, and policymakers slow introduction to financial reforms in Beijing; no wonder that the 'glory days' for the greenback will last for several years.

Truly, it will take a lot of financial reforms and long term factors to play in order to knock out the dollar supremacy; now that more and more nations are willing to settle for more trades in between to cope up with the volatile trends in the world market.

About Lanova Investments
Lanova Investments' investment philosophy emphasizes the importance of compounding long term capital growth associated with equity investing while maintaining flexibility to shift asset allocations away from equities when our outlook for that asset class is highly negative. Depending upon the clients' individual needs, they actively manage the allocation of assets between stocks, bonds, and cash based on their risk and return expectations for each asset class. Their Investment Policy Committee uses several proprietary models in conjunction with years of industry experience to determine the optimal allocation.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

Ultimately, the new measures presented in order to regain the smooth sailing of the economic status of the country are expected to lead Russia’s managed Forex accounts towards a stricter approach where they don’t have to swap dollars to roubles just to catch up.

Naxxar, Malta -- (SBWIRE) -- 12/22/2014 -- The ailing economy of Russia is dangling on the ropes as the currency collapsed within a matter of days due to falling oil values. The central bank intervenes and forcibly starts selling FX to hike its key interest rate by 650 basis points as an emergency move to least support the currency.

The attempt of the finance ministry to throw $7bn in reserves has gradually raised the rouble's value by 3% against the dollar at 65.52 and is 4.2% stronger versus the Euro at 81.50. Despite the humble upturn of the currency, the rouble was still down to almost 50% against the dollar this year that stirred many of the 1998 crises when the currency first plummeted.

Strengthening of the roubles may look artificial and could be an errant export that convinced the authorities to sell Forex. Still, the intervention of the Russian central bank to defend the rouble, despite the efforts, has been dragged lower by falling oil prices. Furthermore, the huge impact of the dollar jump against roubles made imports immensely unaffordable for many Russian consumers, thus hurting the economy badly.

The situation had pose major challenges for President Vladimir Putin whose popularity was put to a great test after the rouble's decline that is damaging Russia's reputation among investors. But the Prime Minister, Dmitry Medvedev, tried some verbal intervention by assuring Russians not to worry for the reserves were deep enough to be knocked down by the financial crisis.

Yet, the third spike really spurred the rouble that the Central bank has to devise a strategy to restore the Soviet Union's financial stability and contain the effects of the collapse. As Russia slowly rebounds back as the price for oil soars, the Central Bank of Russia released the English version of the 'seven (7) measures to maintain stability', that states the following:

1. Introduction of a temporary moratorium on the recognition of the negative revaluation of securities portfolios of credit institutions and non credit financial institutions.
2. Providing credit institutions temporary right to use the calculation of prudential requirements on transactions in foreign currency rate.
3. Improving the mechanism of credit institutions in foreign currency
4. Considering the central counterparty on the Moscow Stock Exchange as an important institution for centralized distribution of liquidity among all financial market participants (both credit and non-credit institutions).
5. Empower interest rate risk management.
6. Enhance the management of credit risk by giving opportunity not to impair the quality assessment of debt service regardless of the assessment of the financial position of the borrower on the loans restructured
7. Recapitalizing credit institutions in 2015 in order to maintain the stability of the banking sector in the face of the increased interest rate and credit risks.

Ultimately, the new measures presented in order to regain the smooth sailing of the economic status of the country are expected to help Russia's managed Forex accounts towards a stricter approach where they don't have to swap dollars to roubles just to catch up.

About Lanova Investments
Lanova Investments' investment philosophy emphasizes the importance of compounding long term capital growth associated with equity investing while maintaining flexibility to shift asset allocations away from equities when our outlook for that asset class is highly negative. Depending upon the clients' individual needs, they actively manage the allocation of assets between stocks, bonds, and cash based on their risk and return expectations for each asset class. Their Investment Policy Committee uses several proprietary models in conjunction with years of industry experience to determine the optimal allocation.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm