Please find below August 2025 update.
US tariffs finally rolled out and as expected, since it had been building up since February, little impacts on the markets. The forex market just bounced around and did not do that much.
But time will tell as had some family return from the US and they said it was clear the cost of living is a real issue and is being supported by the latest US jobs reports with a drop in employment by businesses. The US Govt is being fed with billions of tariff revenues but if this does not feed to helping consumers, expect some further contraction of the US economy which could impact other countries.
This week bond markets flashed red. Not anything to worry about just yet but to be watched as just one of the signs the share market going higher continuously is not being supported by the economies moving forward. With the amount of government debt continuing to rise, cost of living pressures – not sure Governments have the answers to fix it or willing to put their political careers on the line to make the hard decisions needed. The current model is unsustainable.
Whilst I am not a fan of Trump, you must respect what Trump has done as he is making a big decision to shake up world economies to deliver higher US government revenues and using the size of the US economy to his advantage to implement this. But think he has underestimated the impact it will have on cost of living and is blurring the world economy trade lines.
Not trying to be all doom but what I am trying to point out is the pressure is building. This pressure does not mean something will happen tomorrow as the major economies are continuing with strong job markets, housing markets holding etc.
On our front we will be rolling out a new bot to MT5 strategies that focuses on NZDCAD. In addition, we have one further bot still in development which trades multiple currencies and will look to either roll out on existing strategies with our other bots or setup on its own.
This week one of our VPS providers undertook maintenance over the weekend and had issues with the updates so the VPS would not start for first 3 days of trade. This impacted 5 of our strategies unable to trade. Been fixed now. This is why we split our strategies across different VPS providers to limit impacts. Rare it happens but still a risk we manage.
Any queries, please do hesitate to reach out.
