How do exchange rate fluctuations affect metal prices – specifically Tin?

May 10th, 2018|Kwanji|

Metals are tied in, like every other sector, to the global economy via a variety of exchange rate mechanisms, and metal prices change as stock markets fluctuate. Exchange rate fluctuations affect metal prices profoundly. The prices of individual metals, like prices for any commodity, are essentially determined by supply and demand. Current prices do not [...]

What is the link between commodities and currency?

May 3rd, 2018|Kwanji|

A commodity currency is a name given to some currencies that co-move with the world prices of primary commodity products, due to these countries' heavy dependency on the export of certain raw materials for income. Commodity currencies are most popular in developing countries such as Burundi, Tanzania and Papua New Guinea. However developed countries like [...]

Bitcoin in 2018

April 26th, 2018|Kwanji|

In 2017, anything related to Blockchain and cryptocurrency was hot property; in 2018, anything linked with blockchain is having a difficult time. Last year, about 170 hedge funds began trading; while in 2018 only 20 new funds have started so far. Additionally, chances are 10 percent of the existing funds will close operations this year, [...]

Trump and the economy – facts vs. fiction

April 19th, 2018|Kwanji|

"Since the election, we have created 2.4 million new jobs, including 200,000 new jobs in manufacturing alone," said Trump. The unemployment rate has fallen under Trump, from 4.7 per cent in December 2016 to 4.1 per cent in December 2017, a very low rate by historical standards. But this is a continuation of the downward [...]

Why does Trump want a weak dollar?

April 12th, 2018|Kwanji|

The dollar was the second worst performer in 2017 among major currencies after the New Zealand dollar, and its drop was the steepest in more than a decade despite three interest rate hikes and the passage of Trump's tax reform, which could logically be expected to drive the dollar's value upward. This significant drop has [...]

Has Trump officially started a trade war?

April 5th, 2018|Kwanji|

Worries that Trump is entangling America in a global trade war intensified greatly this week after China imposed retaliation tariffs on the US and stock markets plunged. The Dow Jones industrial average crashed and then rallied after markets fell in Europe and Asia on concerns of an escalating trade conflict amongst the world’s two leading [...]

How has Trump’s Twitter use impacted equities and markets?

March 29th, 2018|Kwanji|

Trump has been a Twitter user since 2009, amassing more than 20 million followers and issuing more than 30,000 tweets. Trump’s frequent use of Twitter in the addressing of individual companies, countries and future U.S. policy towards commerce have made his Twitter feed an influential market moving force. A strong advocate for Twitter, Trump cites [...]

Exploring the initial impact of Trump winning the US election

March 22nd, 2018|Kwanji|

Polling data failed to predict that Trump would win the White House – which he did by 290 electoral votes to 228. Besides wrestling the presidency away from the Democrats, the Republican Party also managed to keep control of its majority in the Senate and Congress. It was this data that guided markets to think [...]

Currency and the Crusades

March 8th, 2018|Kwanji|

We explained last week that beginning with the Crusades, Europeans rediscovered spices, silks, and other commodities which were uncommon in Europe. This development created a fresh desire for trade, and trade expanded in the second half of the Middle Ages. Newly forming European states, through voyages of discovery, were looking for different trade routes in [...]

Italy’s role in the history of FX

March 1st, 2018|Kwanji|

We touched last week on how countries asserting domination on minting coins paired with the Commercial Revolution led to a rise in cross-border trade and thus the need for FX. We also mentioned how this was carried out on an international scale by mainly Italian merchant societies. In relation to minting coins, Italy has an [...]