A news blackout is underway in southern Ukraine which means “something big is going on”. THis is according to Sky News.

They add that:

• Russia’s targeting energy infrastructures
• Ukraine president Zelenskyy says it’s country is “under fire” and that 30% of powerstations have been destroyed in October.
• A news blackout is underway in southern Ukraine suggesting an imminent push Kyiv.

Over the last 24 hours, there has been a wave of suicide drone strikes in Ukraine’s capital Kyiv. The Ukraine president said that Russia is attempting to terrorize civilians. According to Ukraine officials 13 of the drones were shot down with 5 plunging into Kyiv itself destroying buildings and killing civilians.

Ukrainian intelligence allege that Russia order 24,000 drones from Iran. Russia is attempting to hoard its depleted missile inventory.

UK defense minister Wallace has made an emergency trip to the US to discuss the security situation Ukraine including the threat of a nuclear attack.

NYU professor Nuriel Roubini said today “In some sense, World War III has already started. It started in Ukraine because of this conflict has broader implications that go well beyond Russia and Ukraine. It’s the beginning of something else”

Roubini cited China in addition to “revisionist” powers including Russia, Iran, North Korea, and Pakistan as nations that look to challenge the “economic, social, and geopolitical: order that the US, and Europe and the West created after World War II”.

The negotiations between Iran and the US on a new nuclear deal seemed to get to a finish line only to fall backwards. Meanwhile Israel says that if Iran becomes nuclear, they would attack them.

/inflation
Inflation

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.
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