BOE's Dhingra: Caution Needed on Consumption Weakness, Supports Easing Policy Constraints

Remarks of Officials

Summary:

The UK economy is experiencing sluggish growth, with a cooling labor market. Although inflation has declined, it remains above the target level. Swati Dhingra, member of the monetary policy committee at the Bank of England (BOE), has elaborated on her decision to call for interest rates to be slashed, saying taking a "gradual" approach would still leave monetary policy as a drag on the economy this year.

On February 24th, Dhingra delivered a speech at the University of London, highlighting the following points:

The UK economy remains in a state of stagnation. "While wages have increased, consumption hasn't, implying something has changed somewhere along the way." Household savings are not "chasing" goods and services. Consumer spending is likely to remain weak, and the economy has yet to fully recover.

The UK labor market is gradually cooling down. Job losses in retail and hospitality are likely because that's where vacancies are below pre-Covid levels. Moreover, the rising bankruptcy rate among small businesses suggests that downward economic pressures are accumulating. Although wages have increased, consumer spending remains weak, and household savings have not translated into actual consumption, thereby dampening inflationary pressures to some extent.

UK inflation has declined from its peak, but the January CPI was higher than expected. Driven by a rebound in energy prices, the inflation rate hit a higher-than-forecast 3% in January and is forecast by the BOE to reach 3.7% in the third quarter. However, Dhingra believes that inflationary pressures are not out of control and noted that some sectors, such as service producer prices, are actually showing disinflationary signs. "Consumption weakness isn't going away" Dhingra said. "We basically aren't recovering fully and I think that's the reason that I have been much more on the side of wanting to reduce the level of restriction that we see in the economy. We need to eliminate the adverse effects of policy on the economy more swiftly."

Overall, facing persistent inflationary pressures and weak economic growth, Dhingra supports a more substantial interest rate cut to alleviate the restrictive pressures on the economy. Gradual rate cuts may hold back the economy, and she emphasized the impact of the cooling labor market and weak consumer spending on inflation. Although the committee ultimately decided on a 25 basis point cut, the internal divergence on the future policy path is evident.

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Justin

Economic

Containers are skacked to be shipped at a port in Busan, Feb. 12.

The Bank of Korea (BOK) on Tuesday sharply lowered its outlook for Korea's economic growth this year to 1.5 percent amid slowing export growth and weak domestic demand.

The latest figure marks a 0.4 percentage-point fall from its projection presented in November.

The country's potential growth rate is at 2 percent, and this year may mark the first time ever that the country's yearly growth rate falls below the level.

The BOK's latest projection is more pessimistic than those of other major institutions.

The finance ministry earlier forecast the economy to grow 1.8 percent this year, and the Organization for Economic Cooperation and Development (OECD) presented a 2.1 percent expansion.

Presenting a bleaker forecast, the BOK lowered its key rate by a quarter-percentage point to 2.75 percent.

As for inflation, the BOK maintained its estimate for 2025 at 1.9 percent.

Source: Koreatimes

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Justin

Economic

Bank of Korea Gov. Rhee Chang-yong strikes the gavel during a Monetary Policy Board meeting at the Bank of Korea headquarters in Seoul, Feb. 25. Joint Press Corps

Korea's central bank slashed its benchmark interest rate by a quarter percentage point on Tuesday in an effort to shore up economic growth amid weak domestic demand and uncertainties at home and abroad.

The monetary policy committee of the Bank of Korea (BOK) cut its key rate by 25 basis points to 2.75 percent during a rate-setting meeting in Seoul.

The move came a month after its rate freeze decision, which was aimed at supporting the weak local currency while assessing the impact of two rate cuts in the October and November meetings.

Tuesday's decision underlined the central bank's policy focus on economic growth as it lowered its 2025 growth outlook for Asia's fourth-largest economy to 1.5 percent from its previous forecast of 1.9 percent.

Source: Koreatimes

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Cohen

Economic

Commodity

Gold is nearing the $3000/oz mark, potentially reaching it briefly before a pullback.

Concerns about the stock market and a murky Fed outlook are driving investors towards gold.

Key economic data releases this week include US GDP and PCE data.

Risk aversion persisted in the markets today, as the end of February draws to a close. The risk aversion tone is a result of the ongoing uncertainty of US trade and tariff policy.

President Trump agreed to suspend tariffs for one month on Canada and Mexico in exchange for certain concessions. Will the tariffs be delayed again and scrapped entirely, is the question on the minds of market participants?

Golds Impressive 2025 – More to Come?

The Gold price rally in 2025 has also coincided with a weaker US Dollar.

Is the gold rally exhausted or will a touch of $3000/oz occur this week? That is the pertinent question this week, as $3000/oz remains a possibility.

By Friday, gold had climbed for the eighth week in a row, marking its best streak since 2020, which saw nine straight weeks of gains. While this could indicate the rally is losing steam, gold is so close to the $3,000 mark that it’s likely to at least touch that level briefly before pulling back.

Will Gold Outperform Stocks in 2025?

There is a growing belief that Gold prices may outperform stocks in 2025 as market concerns keep the metal elevated. Excluding the uncertainties around tariffs, central banks are another piece of the puzzle, with the Fed outlook in particular seeming murky.

Concerns around the stock market being overvalued and with retailers concerned about performance moving forward, this is becoming a real possibility.

Source: LSEG, Isabelnet

Data for the Rest of the week

Traders will keep an eye on the US GDP report for the fourth quarter of 2024, due later this week. Recent signs of a slowdown in the US economy, like Friday’s weaker Services PMI data, have added to the interest in this report.

There are also a host of Federal Reserve policymakers who will be speaking this week. The biggest event though from my point of view will be the Feds Preferred inflation gauge, the PCE data release on Friday.

Given the recent uptick in inflation, Fed Chair Powell urged caution about reading too much into the data. He mentioned that the Fed prefers the PCE data and thus making this data release a massive one.

Technical Analysis – Gold (XAU/USD)

Gold saw a pullback in Asian trade before bulls took control once more, propelling the precious metal to fresh all-time highs around 2956.

This move was met by significant selling pressure pushing price back down to 2930. Is this a sign of waning bullish momentum?

That is the question as the huge psychological $3000/oz handle lies in wait.

Bulls remain firmly in control at present with a break of 2956 opening up a test of 2975 on route to 3000.

I still think the 3000 handle will be hit, but the precious metal may struggle to find acceptance above this level at the first time of asking.

When we compare the current 8-week gold rally to the 9-week rally in 2020, the current one shows stronger momentum. Back in 2020, the rally ended with a bearish hammer indicating a pullback, but last week, gold closed near its highs.

Unless we see a clear reason to sell, like a drop in the stock market, gold might still hit $3,000 briefly. However, $3,000 is a significant level, and many might take profits quickly if it gets there.

Gold (XAU/USD) Daily Chart, February 24, 2025

Source: TradingView (click to enlarge)

Support

2930,2900,2882

Resistance

2956,2975,3000

Source: ACTIONFOREX

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Glendon

Economic

For finance professionals, staying informed and inspired is key to navigating the ever-evolving world of markets, investments, and economics. While books and courses are essential, documentaries offer a unique and engaging way to deepen your understanding of financial systems, historical events, and industry trends. In this article, we’ve curated a list of the top documentaries every finance pro should watch. These films provide valuable insights, real-world lessons, and thought-provoking perspectives that can enhance your expertise and spark new ideas.

1. "Inside Job" (2010)

Why Watch? This Academy Award-winning documentary, directed by Charles Ferguson, provides a comprehensive analysis of the 2008 global financial crisis. It explores the systemic corruption, risky practices, and lack of regulation that led to the collapse of major financial institutions.

Key Takeaways: Understand the dangers of unchecked greed, the importance of regulatory oversight, and the far-reaching consequences of financial mismanagement.

2. "The Big Short" (2015)

Why Watch? Based on Michael Lewis’s bestselling book, this film combines drama and documentary-style storytelling to explain how a handful of investors predicted and profited from the 2008 housing market crash.

Key Takeaways: Learn about complex financial instruments like mortgage-backed securities and credit default swaps, and how they contributed to the crisis.

3. "Freakonomics: The Movie" (2010)

Why Watch? Inspired by the bestselling book by Steven Levitt and Stephen Dubner, this documentary explores the hidden side of economics and human behavior. It covers topics like incentives, cheating, and the impact of names on success.

Key Takeaways: Gain a fresh perspective on how economic principles apply to everyday life and decision-making.

4. "Enron: The Smartest Guys in the Room" (2005)

Why Watch? This gripping documentary delves into the rise and fall of Enron, one of the biggest corporate scandals in history. It reveals how accounting fraud, greed, and unethical practices led to the company’s collapse.

Key Takeaways: Understand the importance of transparency, ethical leadership, and the dangers of corporate arrogance.

5. "Capitalism: A Love Story" (2009)

Why Watch? Directed by Michael Moore, this documentary critiques the impact of capitalism on society, focusing on income inequality, corporate power, and the 2008 financial crisis.

Key Takeaways: Reflect on the broader implications of economic systems and their effects on individuals and communities.

6. "The China Hustle" (2017)

Why Watch? This eye-opening documentary exposes fraudulent practices in Chinese companies listed on U.S. stock exchanges and the challenges faced by investors trying to uncover the truth.

Key Takeaways: Learn about due diligence, the risks of international investing, and the importance of skepticism in financial analysis.

7. "Money for Nothing: Inside the Federal Reserve" (2013)

Why Watch? This documentary provides an inside look at the Federal Reserve’s role in the U.S. economy, particularly during the 2008 financial crisis.

Key Takeaways: Gain a deeper understanding of monetary policy, central banking, and the Fed’s influence on global markets.

8. "Banking on Bitcoin" (2016)

Why Watch? As cryptocurrency continues to reshape the financial landscape, this documentary explores the origins of Bitcoin, its potential, and the challenges it faces.

Key Takeaways: Stay ahead of the curve by understanding the technology, risks, and opportunities associated with digital currencies.

9. "The Ascent of Money" (2008)

Why Watch? Based on Niall Ferguson’s book, this series traces the history of money, credit, and banking, offering a comprehensive overview of the financial world.

Key Takeaways: Appreciate the evolution of financial systems and their impact on global economies.

10. "Trader" (1987)

Why Watch? This rare documentary follows legendary trader Paul Tudor Jones as he navigates the markets and shares his insights on trading psychology and strategy.

Key Takeaways: Learn from one of the greatest traders of all time and gain valuable lessons on risk management and market analysis.

Why Finance Pros Should Watch Documentaries

Documentaries offer a unique blend of education and entertainment, making complex financial concepts accessible and engaging. They provide real-world examples, historical context, and diverse perspectives that can enhance your understanding of the industry. Whether you’re looking to stay informed about current trends, learn from past mistakes, or simply gain inspiration, these films are a valuable resource for any finance professional.

Conclusion

From the 2008 financial crisis to the rise of cryptocurrency, these documentaries cover a wide range of topics that are relevant to finance professionals. By watching these films, you’ll not only expand your knowledge but also gain a deeper appreciation for the complexities and challenges of the financial world. So grab some popcorn, sit back, and get ready to learn from the best in the business.

To stay updated on all economic events of today, please check out our Economic calendar

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Glendon

Economic

Cryptocurrency has revolutionized the financial world, offering decentralized, borderless, and innovative solutions for transactions and investments. However, as the crypto market grows, so does the need for regulation. Governments worldwide are grappling with how to manage this new asset class, balancing innovation with consumer protection and financial stability. In this article, we’ll explore cryptocurrency regulations across the globe, providing a comprehensive guide to how different countries are shaping the future of crypto.

Why Crypto Regulations Matter

Cryptocurrency regulations are essential for several reasons:

Consumer Protection: Regulations help protect investors from fraud, scams, and market manipulation.

Financial Stability: Clear rules prevent crypto from being used for illegal activities like money laundering or terrorism financing.

Market Growth: Well-defined regulations foster trust and encourage institutional adoption of cryptocurrencies.

How Countries Are Approaching Crypto Regulations

1. United States

Regulatory Framework: The U.S. has a fragmented regulatory approach, with multiple agencies like the SEC (Securities and Exchange Commission), CFTC (Commodity Futures Trading Commission), and IRS (Internal Revenue Service) overseeing different aspects of crypto.

Key Rules: Cryptocurrencies are treated as property for tax purposes, and exchanges must comply with anti-money laundering (AML) and know-your-customer (KYC) requirements.

Recent Developments: The U.S. is working on clearer guidelines for stablecoins and decentralized finance (DeFi).

2. European Union

Regulatory Framework: The EU is implementing the Markets in Crypto-Assets (MiCA) regulation, which aims to create a unified framework for crypto across member states.

Key Rules: MiCA will require crypto issuers and service providers to obtain licenses and adhere to strict transparency and consumer protection standards.

Recent Developments: The EU is also focusing on regulating NFTs and DeFi platforms.

3. China

Regulatory Framework: China has taken a strict stance on cryptocurrencies, banning all crypto transactions and mining activities.

Key Rules: Cryptocurrencies are considered illegal, and the government promotes its own digital currency, the digital yuan.

Recent Developments: China continues to crack down on crypto-related activities while advancing its central bank digital currency (CBDC) project.

4. Japan

Regulatory Framework: Japan has a progressive approach to crypto regulation, recognizing cryptocurrencies as legal property under the Payment Services Act.

Key Rules: Crypto exchanges must register with the Financial Services Agency (FSA) and comply with AML and KYC requirements.

Recent Developments: Japan is exploring regulations for stablecoins and improving investor protection measures.

5. El Salvador

Regulatory Framework: El Salvador made history by adopting Bitcoin as legal tender in 2021.

Key Rules: Businesses must accept Bitcoin as payment, and the government has launched initiatives like the Chivo wallet to promote adoption.

Recent Developments: The country is exploring Bitcoin-backed bonds and renewable energy for mining.

6. India

Regulatory Framework: India has a mixed approach, with no outright ban but heavy taxation on crypto transactions.

Key Rules: Cryptocurrencies are taxed at 30%, and a 1% TDS (tax deducted at source) is applied to transactions.

Recent Developments: India is working on a comprehensive crypto bill and exploring the launch of a digital rupee.

7. Switzerland

Regulatory Framework: Known as the "Crypto Valley," Switzerland has a favorable regulatory environment for cryptocurrencies.

Key Rules: Crypto is treated as an asset, and the country has clear guidelines for ICOs (initial coin offerings) and blockchain projects.

Recent Developments: Switzerland is enhancing its AML laws to align with international standards.

Key Challenges in Global Crypto Regulation

Lack of Uniformity: Different countries have varying approaches, creating challenges for global crypto businesses.

Rapid Innovation: Regulators struggle to keep up with the fast-paced evolution of crypto technologies like DeFi and NFTs.

Balancing Act: Governments must balance fostering innovation with protecting consumers and maintaining financial stability.

What’s Next for Crypto Regulations?

As the crypto market matures, we can expect more countries to adopt comprehensive regulations. Key trends to watch include:

Global Collaboration: Efforts like the Financial Action Task Force (FATF) guidelines aim to create a unified approach to crypto regulation.

CBDCs: Central banks worldwide are exploring digital currencies, which could reshape the crypto landscape.

DeFi and NFT Regulation: As these sectors grow, regulators will focus on creating frameworks to address their unique challenges.

Conclusion

Cryptocurrency regulations are evolving rapidly, with each country taking a unique approach to managing this transformative technology. For crypto enthusiasts, investors, and businesses, staying informed about these rules is crucial to navigating the global market. Whether you’re trading Bitcoin in the U.S., exploring DeFi in the EU, or mining crypto in a more lenient jurisdiction, understanding the regulatory landscape is key to success.

By keeping an eye on global developments and adapting to new rules, you can harness the power of cryptocurrency while staying compliant and secure.

To stay updated on all economic events of today, please check out our Economic calendar

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Glendon

Economic

In the fast-paced world of trading, technical analysis is a critical skill that separates successful traders from the rest. If you’re looking to deepen your understanding of market trends, chart patterns, and trading strategies, earning a Chartered Market Technician (CMT) certification could be your game-changer. Recognized globally as the gold standard in technical analysis, the CMT designation equips you with the knowledge and credibility to excel in the financial markets. In this article, we’ll explore what the CMT certification is, why it matters, and how it can help you master technical trading.

What is the CMT Certification?

The CMT certification is offered by the CMT Association, a global credentialing body dedicated to advancing the discipline of technical analysis. It is designed for finance professionals, traders, and analysts who want to specialize in technical analysis—a method of evaluating securities by analyzing statistics generated by market activity, such as price movements and volume.

The CMT program consists of three levels, each focusing on different aspects of technical analysis:

Level 1: Foundations of technical analysis, including chart patterns, trends, and basic indicators.

Level 2: Advanced technical tools, such as Elliott Wave Theory, cycle analysis, and risk management.

Level 3: Application of technical analysis in real-world trading scenarios, including portfolio management and ethics.

Why Pursue a CMT Certification?

1. Master Technical Analysis

The CMT program provides a comprehensive understanding of technical analysis, from basic concepts to advanced strategies. You’ll learn how to interpret charts, identify trends, and use indicators like moving averages, RSI, and MACD to make informed trading decisions.

2. Enhance Your Career Prospects

The CMT designation is highly respected in the finance industry. It signals to employers and clients that you have the expertise to analyze markets effectively and make data-driven decisions. Whether you’re a trader, portfolio manager, or financial analyst, the CMT certification can open doors to new opportunities.

3. Gain a Competitive Edge

In a crowded market, the CMT certification sets you apart from other professionals. It demonstrates your commitment to continuous learning and your ability to apply technical analysis to real-world trading scenarios.

4. Join a Global Network

As a CMT charterholder, you’ll gain access to a global community of technical analysis professionals. This network can provide valuable insights, mentorship, and collaboration opportunities.

5. Improve Your Trading Performance

By mastering technical analysis, you’ll be better equipped to identify profitable trading opportunities, manage risk, and optimize your portfolio. The CMT program emphasizes practical skills that you can apply immediately to your trading strategy.

Who Should Pursue the CMT Certification?

The CMT certification is ideal for:

Traders looking to refine their technical analysis skills and improve their trading performance.

Financial Analysts who want to incorporate technical analysis into their research and recommendations.

Portfolio Managers seeking to enhance their ability to time market entries and exits.

Finance Students aiming to build a strong foundation in technical analysis and stand out in the job market.

How to Get Started with the CMT Program

Eligibility: To enroll in the CMT program, you need a bachelor’s degree or equivalent work experience in finance or a related field.

Study Materials: The CMT Association provides textbooks, online resources, and practice exams to help you prepare for each level.

Exams: Each level requires passing a multiple-choice exam. Level 3 also includes essay questions to test your practical application of technical analysis.

Commitment: The program requires dedication and time. On average, candidates spend 100-150 hours studying for each level.

Tips for Success in the CMT Program

Create a Study Plan: Break down the syllabus into manageable sections and set a study schedule.

Practice Regularly: Use trading platforms to apply what you’ve learned and gain hands-on experience.

Join Study Groups: Collaborate with other candidates to share insights and stay motivated.

Focus on Real-World Application: Understand how technical analysis can be used in different market conditions and asset classes.

Conclusion

Earning a CMT certification is a powerful way to master technical trading and advance your career in the financial markets. With its rigorous curriculum, practical focus, and global recognition, the CMT designation equips you with the skills and credibility to succeed in a competitive industry. Whether you’re a seasoned trader or just starting out, the CMT program offers a clear path to expertise in technical analysis.

By investing in your education and earning the CMT certification, you’ll not only enhance your trading performance but also position yourself as a trusted professional in the world of finance. So, take the first step today and unlock your potential as a master of technical trading.

To stay updated on all economic events of today, please check out our Economic calendar

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Data

BOE's Dhingra: Caution Needed on Consumption Weakness, Supports Easing Policy Constraints

Bok Slashes Korea's 2025 Growth Outlook to 1.5 % from 1.9%

Source: Koreatimes

Bok Cuts Key Rate By 25 Basis Points Amid Grim Growth Outlook

Source: Koreatimes

Gold (XAU/USD) Retreats from Fresh All-time Highs, Bulls Remain In Control

Gold (XAU/USD) Daily Chart, February 24, 2025

Source: TradingView (click to enlarge)

Source: ACTIONFOREX

Top Documentaries for Finance Pros

1. "Inside Job" (2010)

2. "The Big Short" (2015)

3. "Freakonomics: The Movie" (2010)

4. "Enron: The Smartest Guys in the Room" (2005)

5. "Capitalism: A Love Story" (2009)

6. "The China Hustle" (2017)

7. "Money for Nothing: Inside the Federal Reserve" (2013)

8. "Banking on Bitcoin" (2016)

9. "The Ascent of Money" (2008)

10. "Trader" (1987)

Why Finance Pros Should Watch Documentaries

Conclusion

Crypto Rules: A Global Guide

Why Crypto Regulations Matter

How Countries Are Approaching Crypto Regulations

1. United States

2. European Union

3. China

4. Japan

5. El Salvador

6. India

7. Switzerland

Key Challenges in Global Crypto Regulation

What’s Next for Crypto Regulations?

Conclusion

Master Technical Trading with a CMT Certification

What is the CMT Certification?

Why Pursue a CMT Certification?

1. Master Technical Analysis

2. Enhance Your Career Prospects

3. Gain a Competitive Edge

4. Join a Global Network

5. Improve Your Trading Performance

Who Should Pursue the CMT Certification?

How to Get Started with the CMT Program

Tips for Success in the CMT Program

Conclusion

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