InstaForex Loprais team wins Rally Breslau

July 24th, 2014

InstaForex Loprais Team finished first in the category of trucks at long-lasting Rally Breslau 2014 in Poland.
The international Rally Breslau is orchestrated on the principle that both professional racers and amateurs are free to take part. This year, a large number of vehicles in all categories applied for the challenge. Traditionally, the competition among trucks was extremely fierce. However, the tough competition unfolded for the second and lower ranks as the lead was gripped by InstaForex Loprais team right from the starting line. The rally team was able to keep its leadership despite all ups and downs as well as troubles because of the unfamiliar route and technical failures. The team was pleased with the wide margin between the first and second ranks. It enabled InstaForex Loprais team to pass the final 100-km special section smoothly.

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The Tatra truck of InstaForex Loprais team covered over 1,000 km along Polish tracks and rough terrain. During Rally Breslau 2014, the team was able to trial the new design of the Tatra and, first and foremost, the new engine. Citing captain Ales Loprais, the team considered Rally Breslau as an excellent opportunity to test the updated configuration and as a rehearsal before the Dakar Rally 2015, event No 1 in the rally world. Ales noted that victory brings joy in any case as it proves not only the fine grade of the new truck, but also “the top gear” of the team. In addition, Ales Loprais mentioned that the team could not avoid minor breakdowns. However, the racers treated each failure as an excuse to update a certain unit of the vehicle and rule out a similar breakdown in the future. “It’s better to fix something here than in Dakar,” the team’s captain made a comment halfway through Rally Breslau.

So, our heartfelt congratulations to InstaForex Loprais team on winning Rally Breslau 2014! Let’s wish Ales and his team great performance at European rallies this summer. Make the most of it to get ready for Dakar!

You always win with InstaForex!

ECB follows in Japan’s footsteps

July 7th, 2014

The European Central Bank cut its benchmark interest rates for banks implementing a long-term lending program. That was all the changes the ECB made at the latest meeting. It might seem not a big deal, but it is obvious that Mario Draghi has opted for the way his Japanese counterparts have been sticking too. Such a strategy will allow the European regulator to thoroughly evaluate the euro area’s prospects, the euro’s exchange rate, and steps to be taken. mario-picdragi

So, what exactly have Draghi done to encourage the economy of the bloc? Let’s see. The ECB brought down the main refinancing rate a little, to 0.15% from 0.25% previously. That suggests the regulator is not ready yet to rush into a hasty decision leaving room to maneuver. In the meantime, the deposit rate was reduced to minus 0.10% from 0%. It was the first time the ECB made up its mind to take the interest rate negative.

As for the 400 billion targeted lending program for banks, it implies that the ECB intends to improve the European lending market at any cost. However, despite the facelift the monetary policy got, the central bank realizes that deflation remains number one enemy for Europe’s economy. Extremely low inflation, sluggish corporate lending, and a strong euro – all that creates the conditions for the deflation to set in. Thus, the ECB Board of Directors headed by Mario Draghi should go beyond the introduction of countermeasures and policy correction at risk of this economic disaster. They should act drastically and immediately. Basically, the measures introduced on Friday ushered in the new stage, but they might not help to achieve the desirable outcome. But the ECB will be able to stall for time using them for sure.

An important point to remember is that some recognized analysts and financiers find fault for the latest steps the European regulator made. For instance, many conservative-minded experts are of the opinion that the negative deposit rate and soft lending will make money for the business sector even easier to get. Since the low-interest loans become more affordable, that might result in deflation. Europe is treading now the path of Japan lagging behind it by one or two steps. Eventually, Japan is going through the deflation now.

We have to admit that despite the deflation, the Japanese economy is still expanding. Apart from playing with the benchmark rates, Prime Minister of the Land of the Rising Sun Shinzo Abe has used other methods for unification and adaptation of the monetary policy to the economic needs. Some of the measures like the yen devaluation are considered to be seismic. However, “Abenomics” is taken on board now as not only politicians, but also ordinary people have come to realize the reasonableness of such a policy. The plan worked out and the industrial output together with export almost got back to the pre-crisis levels scored before the Fukushima disaster.

ekonomik_jpg_576x288_crop_q70But will Mario Draghi dare to go for it? That is an open question. It seems that the ECB chief prefers the Japanese scenario to the American one with its QE, thus alluding to the fact that ECB’s actions are rather predictable so far.

Anyway, the first steps are taken and it is better to watch for the consequences they might cause. As for the non-euro area states, especially the developing ones, they have got sort of a green light. The thing is that Mario Draghi gave a hint that Europe is ready to grant them low-interest loans with easy loan guarantees. That is a great chance for large business, including the Russian one, to seek for the funds needed for development. Besides, the ECB reported separately on the revision of the euro area’s GDP growth outlook for 2014-2016.

The central bank cut its forecast for this year to 1% from 1.2%. Meanwhile, it raised its projection for 2015 to 1.7% from 1.5% and kept in place the one for 2016 (1.8%). That means that the ECB is determined to win the war against the deflation by the end of this year or at least by the beginning of 2015. So, the regulator wants to sacrifice a whole year to get out of the deflation pit. Thus, a negative interest rate is likely to be introduced this year, maybe at the upcoming ECB meeting.

InstaForex now cooperates with Autochartist

June 17th, 2014

InstaForex is pleased to announce its cooperation with Autochartist, an award-winning provider of graphical models analysis.

The Autochartist services allow every InstaForex client to trade more efficiently on financial markets as the system’s software helps to analyze more than 500 trading instruments in online mode with the purpose of identifying the best trading opportunities for a trader.

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All customers of InstaForex can download the Autochartist service free of charge. The program can be used either as a web application or a plug-in.

Reliability and efficiency of the Autochartist service was acknowledged by the Best Technical Analysis provider 2013 award from UKForexAwards.

We believe that our cooperation with Autochartist company will help our clients to make more profitable deals on financial markets and achieve still more success in their trading.

Balance of power shifting from U.S. to Russia and China

June 10th, 2014

611x395_G7_4fcdb15a7f78eThe G7 group’s foreign ministers decision to boycott a planned G8 meeting in Moscow was a grave mistake. First of all, the U.S., Germany, and the United Kingdom are responsible for that. If only the G8 summit were held this summer amid the current geopolitical crisis, it would be as welcome as summer rain on hot skin. However, instead of several days of a constructive dialogue and search for ways out of both political and economic issues, the global community preferred to dive headfirst into harsh consequences of economic sanctions imposed on Russia.
Let us consider some potential implications of economic sanctions against Russia. Lithuania and Latvia are the first nations whose economies would collapse losing almost 50% of their exports. Furthermore, they risk ending with zero GDP growth, negative trade balance, and overall budget deficit. The fact that Lithuania is set to adopt the euro in January 2015 could add fuel to the fire. get_img
Going forward, almost all European countries would suffer from surging gas prices if fortunate enough. In the worst-case scenario, the EU states would face insufficient/ in gas supplies.  About 25-30% of German industrial production directly depends on the Russian gas and 60% of industries are partly dependent. In case of disruptions in natural gas deliveries, the declining German economy could have a domino effect across the entire euro area. When that happens, the EU could wave goodbye to Greece, Portugal, Spain, and perhaps Italy that have been kept afloat by Germany so far.  Moreover, the Russian Federation is the fourth largest exports market for the German machinery and equipment industry. If Russia exits some contracts and projects, this would seriously affect German exports. So sanctions against Russia are a double-edged sword hitting the economy of Germany and the whole Europe. This is the way the U.S. pushes the European Union to take decisions that would be advantageous solely to it, not the EU. The U.S. dares to put pressure on Europe and use Cold War rhetoric because it is not as dependent on Russia as the EU. The EU is going through a paradoxical situation with its businesses being either fence sitters or favorers of Russia when the EU’s government is toeing the U.S. line on sanctions. For example, Germany’s entrepreneurs send very clear signals that quarrelling with Russia would deal a fatal blow to some European businesses and even entire economic sectors.
3e58de2c5f0dHowever, those who think that this political and economic conflict would no way affect the U.S. simply do not understand how it works. The risk does exist. And it is called “the China factor”. It was China that voted against imposing sanctions on Russia at the UN Security Council, thus making it clear it would not play the U.S. political games. Moreover, China is the world’s largest energy consumer firmly tied to Russia. So pressure from the West, whatever strong it may be, would not make the People’s Republic of China dance to U.S. tune.
The U.S. has opened a real can of worms with its attempts to isolate Russia. Thus, at live broadcast nationwide phone-in, Russian President Vladimir Putin highlighted the growing strategic partnership between Moscow and Beijing. The U.S must have struck a note of warning about that. China, the biggest foreign creditor to the U.S. holding the lion’s share of its foreign debt in dollar reserves, has every right to demand the United States to pay it off in full. It is theoretically possible that China would bring down the American empire, say to the level of Uganda or Bangladesh. But the Chinese would not do that since it would rather look like an economic war. 2469_1
Yet, China is willing and will be friends with Russia. In its turn, Russia is ready to organize an unofficial bloc with China and ease conditions of energy provision for its Eastern neighbor.  In such a situation, Europe would better either take a neutral position so that not to worsen its economic situation or take a risk and back the East, on which the global economy would depend in the next 20 years. Russia in no event would lose the U.S. as its partner since it has never been like that. As for the relations with Europe, the nations’ economies are so interdependent that cool heads should prevail in solving the issue. Contrariwise, Russia’s partnership with China could dramatically change global balance of power. Who stands to gain from it? Obviously, China and Russia. And who would lose out? The U.S. and all the rest. As they say, whoever digs a pit will fall into it.

Once again, InstaForex wins the title of the best retail broker in Eastern Europe

May 19th, 2014

Nowadays, InstaForex is a powerful participant of the international forex market. The company went down in history of the forex business and occupied the leading position rendering its brokerage services. In the brokerage community, awards for expertise and reliability are considered to be a criterion of popularity and established reputation. More than once, InstaForex has been recognized by influential financial journals and has been fairly distinguished by prestigious international awards in Singapore, Guangzhou, Abu Dhabi, and other financial hubs. Indeed, awards embrace literally the whole geographical scale of the company’s activities.

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InstaForex has gathered the vast collection of various titles. The company has won in such categories as the Best Broker in Asia, the Best Global Retail Broker, the Best Broker in CIS, and others. This year, one more award has been added to its rich collection. So, InstaForex has been awarded in the category the Best Forex Broker, Eastern Europe 2014 by IAIR, the popular business journal in Italy. Importantly, InstaForex was given the award of the best Broker in Eastern Europe in 2012.
IAIR journal held the high-profile ceremony of award giving for 2014 in Hong Kong. Over 30 companies were awarded for their achievements at this international event. Each of the companies made their own contribution to the forex business development.

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IAIR Awards is one of the respected awards in the worldwide rating focusing on the global economy and sustainable development of its sectors. The Italian business journal IAIR honors annually the most advanced financial companies around the world. The main gauge to pick winners is the robust business development and introduction of innovative services. The editorial staff applies its own long-lasting system to determine the best high-fliers in their business. The editorial board carries out their own surveys on performance and high reliability of companies. Besides, the journal readers have the right to vote. The journal annually polls tens of thousands people from different corners of the globe.

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InstaForex frequently gains various awards and trophies which prove that the company has been evolving in line with modern needs. Traditional victories in contests are a sign of stability, high expertise, and premium quality of its services. The assessment of the company performance is made on the basis of independent and unbiased criteria.
InstaForex is honored to win an IAIR Award once again. The company is keen to develop all its activities and to become the benchmark among other brokerage companies.
You can find out more about the event in Hong Kong in this video: