Forex traders, make sure you mark your daily calendars for 2pm EST. As you already know, the statement from the Federal Open Market Committee (FOMC) is coming out.
Their projections on economic growth and inflation over the next two years is going to have a significant effect on the currency markets.
In particular, pay close attention to any USD cross-pairs!
Any statement or announcement which is more hawkish than expected will generally indicate the USD strengthening, so plan your trades accordingly and watch out for extremely volatile market movements around the time of the news being released.
As for the boys in the Federal Reserve, there’s a good chance that interest rates will remain low for the next 2-3 years.
However, their economic projections could still move the markets up or down in the blink of an eye.
They won’t be announcing any major changes, but we all know they like to be super-conservative with their statements.
You’ll have to pay close attention to any language they use which could imply improving or worsening with regard to key variables such as unemployment rate, buying bonds, job growth, and so on.
Get your mouses ready and your trades planned well in advance. This is the time of every month where the sharks come out to kill the little fishes and take home their prey.
What do YOU think will be announced on today’s meeting? What will happen to the USD? Reply to this newsletter with your predictions and let’s see who ends up being right!
Russia’s COVID-19 Death Toll Doesn’t Make Sense… or Does It!?
Russia has kept itself out of the news, for the most part. The mainstream media in America and around the world have been so focused on other countries that they barely paid any attention to the former USSR. They’re either obsessing about Sweden, or giving more sh*t to the USA for their inability to keep the virus contained.
However, something doesn’t seem quite right about Russia’s data reporting: Their government numbers show excess deaths between May and July being 3-fold higher than the number of people who have died from COVID-19.
Yet in spite of this, their death toll from COVID-19 is actually quite low and the country as a whole has the 4th largest number of COVID-19 infections. So what gives?
From an article on Yahoo News:
“Moscow says the way it classifies deaths is more accurate than other nations. Some Russian health officials have explained that in many cases, a patient who dies with COVID-19 does not necessarily die of it but from other causes including pre-existing health problems.”
So they’re reporting people who actually die FROM the coronavirus, and not from other co-existing health conditions. Which is exactly how it should have been done in the first place, considering how each additional health condition greatly increases one’s chances of death (and susceptibility to infection).
Why can’t America do the same? Why artificially jack up the numbers to scare the population?
The Potential Path to Recovery for the Rental Car Industry
At the start of the COVID-19 pandemic, the rental car industry took a devastating financial hit. Despite gas prices falling down to all-time lows, nobody wanted to drive their own cars around in fear of contracting the coronavirus. So why on God’s green earth would they want to rent a car from a total stranger?
Well, with the COVID-19 pandemic slowly reaching its end and lockdown restrictions being relaxed, people are eager to start traveling again. According to a survey done by Enterprise Holdings, the safest form of transportation amongst participants was the rental car (60%) compared to ride-sharing (13%) and flying (24%).
Why, you may ask? Travelers are concerned about their safety and well-being, and rental cars are just about the most isolated form of transport you can engage in.
Combined with several rental car companies upgrading their health and safety measures for improved cleanliness, the road to recovery is looking bright for the formerly destroyed industry. Full cleanings between use, sanitization of high-touch points, limited number of passengers per vehicle… it’s overdone, but it has to be done.
So let me ask this question: Would YOU feel comfortable traveling in a rental car right now? Why or why not? Reply to this newsletter and tell us how you feel!
September 21st: Colombia Allows International Flights Through Their Borders
Colombia is one of the most affected countries in the world with regard to COVID-19, ranking as one of the top 6 hotspots with over 715,000 individual infections. You would think their borders would be locked shut.
Even the State Department has Colombia listed as a Level 4 “Do Not Travel” country, stating the following: “Do not travel to Colombia due to COVID-19. Exercise increased caution in Colombia due to crime, terrorism and kidnapping. Some areas have increased risk.”
But they can’t allow their entire tourism industry to crumble and negatively affect the economy, which is why they’re allowing international flights to come in as of September 21st. This only applies to flights, as the land and sea borders will remain closed for the time being.
No word on precisely how incoming passengers will be screened and tested, or how they will be monitored and re-tested while visiting the country. However, since their multi-month lockdown ended just two weeks ago, I can only imagine the conditions for entry will be quite strict.
Canada’s Increasingly Strict Travel Restrictions Could Cause Permanent Economic Damage
For those of us who have expressed some interest in traveling to Canada, or Canadians who want to visit the US, our wishes have been continually squashed by border restrictions against non-essential travel. And just when we think we’re in the clear, the restrictions get extended over and over again.
But it’s not just the USA. In fact, Canada, has maintained extremely strict measures against domestic and international travel, keeping their mandatory 14-day quarantine rule for any and all passengers arriving in Canada since mid-March.
Several Canadian airlines are worried that these strict measures will jeopardize the nation’s economy, and even the International Air Transport Association has had to step in. They insist there are COVID-19 testing measures that can be put in place to allow for safe travel without any significant economic damage.
In particular, these numbers are interesting:
- 3.2% of Canada’s GDP comes from the aviation sector
- 633,000 jobs are supported by the air transport sector, directly or indirectly.
- $22.6 billion in revenue will be lost by airlines traveling within, to, or from Canada (relative to 2019) if the restrictions continue
Yikes… someone needs to tell Trudeau to stop posing for the camera and actually DO something!
The Fiumicino Airport: The World’s First 5-Star Anti-Coronavirus Airport
This is a small yet interesting piece I wanted to share with you… Skytrax, one of the largest bodies in the aviation sector for industry ratings, has launched a new set of criteria called the “COVID-19 5-Star Airport Rating.” It involves various checks from a procedural and visual perspective to ensure airports are a safe and hygienic venue for staff and passengers.
And after a few months, they have found their first airport to give 5 golden stars to: The Fiumicino Airport located in Rome, Italy.
Taken from the article I found this story on:
“Auditors were impressed with the ubiquity of easy-to-read signs in multiple languages throughout the airport, and noted the visible presence of cleaning staff in customer-facing areas.
According to the report the airport is continuously assessing its hygiene methods for improvements and is currently testing several UV sanitization methods at high-contact points such as elevators and escalators.”
Four other airports have been evaluated, with many more to come in the near future. Let’s see if any airports in the USA are able to receive this honorable award…