February 23, 2021

GBP / USD meets Expectations to maintain the price spike

 The pound sterling strengthened to higher levels this month against the US dollar after hitting $ 1.4000 last weekend.

Vaccine vaccination sentiment in the UK has given investors confidence in the Pound trade for the past few weeks, prompting a move to easing movement restrictions.

Most recently, UK Prime Minister Boris Johnson has submitted a government plan on movement restrictions. He explained the easing of restrictions will be carried out in 4 stages with at least a 5 week difference between each stage.

The final phase is expected to see restrictions lifted and all sectors of the economy will be allowed to operate fully.

This positive factor will continue to support the strengthening of the Pound to a higher level in trading this week.

On the GBP / USD pair price chart, the market opening earlier this week saw the price hover above the 1.4000 level before continuing its rise after testing the Moving Average 50 (MA50) support level on the 1-hour time frame of the price movement.

The price rise leads to the high of 1.41000 with the movement in the bullish trend of the price expected to continue to maintain its momentum.

If the price manages to pass the resistance of 1.41000, the next increase is expected to lead to a new high around 1.42000.

If a price decline occurs, the price support level is seen at 1.40000 for the price to test the RBS zone (resistance become support).

A lower downtrend will head back to the RBS zone 1.38300 in anticipation of a bearish price trend change.

Oil prices are getting more expensive!

 Oil prices soared to more than $ 1 on Tuesday, as U.S. crude oil production returned slowly after the closure of a Texas plant due to extreme cold last week.

Shale oil production in the southern United States takes at least two weeks to resume production due to frozen pipes and power outages delaying their recovery.

Brent crude futures rose 1.6% to $ 65.30 a barrel, after hitting a high of $ 66.38 at the start of the session.

Meanwhile, WTI crude futures in the United States increased 1.4% to $ 62.51 a barrel, after hitting a high of $ 62.73 a barrel.

Both benchmarks have risen over 1% after rising nearly 4% in the previous session.

Meanwhile, ahead of next week's OPEC + meeting, Saudi Arabia and Russia are reported to have differing views, with Saudi Arabia looking to increase production to the market in April.

In contrast, Moscow is said to want a reduction in production commitment to continue.

MoneyGram ended the relationship with Ripple

 Due to a lawsuit from the Securities and Exchange Commissions (SEC), the relationship between Ripple and MoneyGram crashed due to the long-term XRP fate.

In a recent decision, the global money transfer service revealed that they did not plan any agenda or benefit from Ripple market development payments for the first quarter of 2021.

For now, MoneyGram has over $ 12 million in net worth from Ripple for the same period last year.

MoneyGram further explained, "Due to the uncertainty of the trial results between Ripple and the SEC, we have restricted trading on the Ripple platform."

Ripple and MoneyGram have been in business for the past three years, where MoneyGram integrates XRP into its payment system. The following year, Ripple and MoneyGram established partner relationships for cross-border payments and foreign exchange settlement with digital assets.

In November 2019, Ripple invested $ 50 million in the exchange. As of December last year, Ripple had sold about $ 15 million worth of MoneyGram shares.

However, since the SEC filed a lawsuit against Ripple and its two CEOs, Brad Garlinghouse and Christian Larsen, MoneyGram has decided to step down. MoneyGram also denies the use of On-Demand Liquidity Ripple and RippleNet services to transfer consumer funds.

MoneyGram is not the first platform to turn away from Ripple. There are already many platforms that list XRP. At the same time, despite the SEC's suit causing the altcoin price to depreciate, the currency has been showing positive movements in two months.

At the time of writing, XRP is trading at $ 0.52, down 12% in 24 hours.

Thanks to the Weaknesses of the USD, Gold Shines Back

 Gold prices climbed to a one-week high on Tuesday, supported by the weakening US dollar.

Gold prices rose above the $ 1,800 level and traded up at $ 1,812 an ounce as the market headed towards the opening of the European session.

The greenback dollar declined to a one-month low against most major currencies, with the dollar index trading weakly at 90.02.

Gold-yellow metal recovered from a 7-month low after falling 2.2% last week as investors focused on the testimony of Federal Reserve (Fed) Chairman Jerome Powell.

Powell's semi-annual report came before the U.S. Senate Committee on Tuesday, and the next day before the Financial Services panel was the market's main focus for guidance on further policy and its assessment of recovery.

Meanwhile, the House of Representatives Budget Committee has reportedly passed a $ 1.9 trillion stimulus law, and it is expected to be passed by the end of this week.

This Company is great!

 Residential furniture manufacturing company, Mobilia Holdings Bhd. made its first strong appearance on the Bursa Malaysia ACE Market today when its share price reached 65 sen at the start of trading which is a premium of 42 sen from the offer price at 23 sen.

According to Bernama, during the trading session, a total of 17.07 million shares of the company were exchanged.

According to its Business Development Manager, Ervin Quek Yan Song, his party is very optimistic about the prospects due to the competitiveness and resilience of the home furniture market which continues to generate global demand following the growth of housing needs.

He added that currently, the company's products are exported to more than 45 countries with most of its revenue contributed by customers from North America, Asia, Europe, South America, North Africa and Malaysia.

"Mobilia will continue to connect with customers at home and abroad to further increase the number of customers," he said at a virtual press conference following the listing of the company today.

Yan Song added that spending on global furniture is projected to grow at a compound annual growth rate (CAGR) of 2.8% while national furniture exports are expected to increase by CAGR 5.0%.

He explained that despite the Covid-19 pandemic, Mobilia still continued its marketing efforts with sessions involving those who have the potential to become customers as well as doing research to identify new customers.

For the financial year 2020 affected by the pandemic, Mobilia's revenue decreased to RM44.7 million from RM75.6 million achieved in the financial year 2019.

Commenting on the performance, Yan Song said, his party remained optimistic that the industry would recover faster during the post-pandemic phase due to factors such as the increase in the number of those working from home.

He said that the factor will also help increase the demand for residential furniture as well as be able to cover the pandemic impact on the industry.