Retail Fx Archives - The Industry Spread

Dollar Flat, Powell Faces a Divided Fed; Jackson Hole Speech Eyed

August 23, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Brexit, CFTC, EUR-USD, Forex, FX trading, GBP-USD, Retail Fx, Sino-U.S. trade talks, USD/JPY

Summary: It was a market where the Dollar Index (USD/DXY) closed little changed (98.207) ahead of today’s Jackson Hole, Wyoming central bank symposium. However, there was lots of movement in FX. The British Pound soared 1% against the Dollar to 1.2255 (1.2125), hitting one-month highs after German Chancellor Angela Merkel said a solution to the Irish border could be found ahead of the October 31 Brexit deadline. Against the beleaguered Euro, Sterling was up 1.08%. EUR/GBP plummeted to 0.9043 (0.9145). EUR/USD was modestly lower at 1.1080 (1.1087) despite better-than-expected rises in Euro area PMI’s. The Dollar dipped against the Yen to 106.42 (106.62). The Aussie fell 0.42% to 0.6760 (0.6780) while the Kiwi dropped 0.62% to 0.6370 (0.6403) after China’s offshore Yuan slumped 0.3% against the Greenback to 11-year lows (USD/CNH 7.0885 vs 7.0700). Asian currencies were all lower against the Dollar. Welcome to the good old world of FX!

FOREX FACTORY – US Manufacturing PMI – 23 Aug 2019

US Bond yields rose while stocks ended with moderate gains. The US 10-year bond yield climbed to 1.61% (1.59%). The spread between the US 2-year and 10-year yield moved to flat after briefly hitting negative territory. The Dow climbed 0.17% to 26,225.
Fedspeak revealed a deep divide amongst US policymakers on interest rates. Amidst a worsening global economic outlook two Fed officials said they saw no need for easing at this time.
Australia’s Flash Composite PMI’s missed forecasts at 49.5 from 51.5. French, German and Eurozone Flash Manufacturing and Services PMI’s were all better than expected. US Flash Manufacturing PMI’s fell to 49.9 in August from 50.4 and a forecast of 50.9. US Flash Services PMI also underperformed. US Weekly Jobless Claims improved to 209,000 from 220,000.

GBP/USD – The British currency jumped after Angela Merkel lifted invertor’s hopes that a solution to the crucial Irish border could be found before the October 31 Brexit deadline. Sterling soared to 1.2273, one-month highs before settling at 1.2255 as spec shorts scrambled for cover.
EUR/USD – The Euro remained on the backfoot closing near at 1.1080 (1.1087) despite better-than-expected Euro area PMI data. Sentiment toward the shared currency remains bearish with the ECB expected to announce fresh stimulus measures in September.
AUD/USD – The Aussie dropped after the Chinese Yuan hit its weakest since March 2008. USD/CNH jumped 0.3% to 7.0885 (7.0700) while Asian currencies fell. AUD/USD retreated to 0.6760 at the close.

On the Lookout: All eyes on Jerome Powell due to deliver a keynote speech at the Jackson Hole symposium in Wyoming (12 midnight Sydney 23 August). Powell’s speech will be on the “Challenges of Monetary Policy”. He faces a divided Fed after two key policymakers said they saw no need for easing at this time. Kansas City Federal Reserve president Esther George (a noted hawk) said that the July rate cut was not needed, and that further stimulus measures are not needed. Patrick Harker, Philadelphia Federal Reserve Head said that there was no need for another rate reduction. Dallas Fed President Kaplan backed the July rate cut. Powell will want to be seen not bowing to repeated attacks from President Donald Trump for not easing policy further. Markets are expecting the US central bank head to clarify the July meeting minutes “mid-cycle adjustment” message and re-affirm an easing stance. The risk is that Powell downplays any rate cut chances.
The US 2-year against 10-year bond yield spread closed flat (1.61%). A move to negative territory, the market’s most feared recession signal, will put pressure on the US Dollar.

Forex Factory – Jackson Hole, Wyoming Economic Policy Symposium Description – 23 AUG 2019

Trading Perspective: It all boils down to Jackson Hole, the annual Wyoming symposium hosted by the Kansas City Fed which is attended by global central bankers, finance ministers and academics and financial market participants. In the past, Jackson Hole has moved FX and this year is no different. Be ready for a volatile ride in FX tonight.

LIVECHARTS.CO UK – GBP USD 1H Chart – 23 AUG 2019

GBP/USD – Yesterday’s move in Sterling saw the impact of market positioning in FX. While Angela Merkel’s comments offered hope for a Brexit backstop solution, the reality is that the UK and EU remain far apart on the issue. French President Macron was sceptical after a meeting with Boris Johnson. For weeks, Sterling has been under pressure on fears that Johnson would take the UK out of the EU without a deal. Net speculative short GBP bets increased to multi-year highs according to the latest COT/CFTC report. GBP/USD jumped to an overnight high at 1.2273 from 1.2125 yesterday before settling at 1.2255. Immediate resistance lies at 1.2270-1.2300. Immediate support can be found at 1.2220 and 1.2180. From here it will depend much on where the US Dollar heads. Look for a volatile 1.2200-1.2300 range today.
EUR/USD – The Euro slid to 3-week lows at 1.10636 before settling at 1.1080 in New York. The shared currency traded to an overnight high at 1.11132. The immediate resistance at 1.1120/30 is strong and would have to see a clean break to push the Euro higher. Immediate support at 1.1060 should hold, otherwise we will see EUR/USD test this year’s low at 1.1025. The next support level lies at 1.0980. Market sentiment is decidedly bearish, but the specs are short. Look to trade a likely range of 1.1060-1.1110 until Powell speaks at Jackson Hole.
AUD/USD – Like the Euro, market sentiment is bearish on the Australian Battler. Net speculative Aussie shorts increased to -AUD 62,912 contracts, an increase of 13% from the previous week. Spec shorts are now at 83% of 2019’s biggest total. The Australian Dollar TWI is at lows now seen since 2008. All supportive factors. On the other hand, continuing weakness in the Chinese Yuan and Asian currencies will weigh on the Australian currency. The locals are decidedly bearish which makes this writer want to buy Aussie dips. An overly bearish domestic market has almost always been a reverse indicator. AUD/USD closed at 0.6760 from 0.6780 yesterday. Immediate support lies at 0.6750 (overnight low 0.67509). The next support level lies at 0.6730 and 0.6700. Immediate resistance can be found at 0.6790 (overnight high 0.67872) followed by 0.6810. Look to buy dips with today’s range likely 0.6750-0.6800.

Put those tin helmets on and get ready to rumble. Happy Friday and trading all.

Strong Sales Data Lifts US Dollar Even as Bond Yields Extend Drop

August 16, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, EUR-USD, Fintech, FX trading, GBP-USD, Retail Fx, trading platform, USD/JPY

Summary: Global Fixed Income markets extended their relentless rally on increased concerns of an economic slowdown. The benchmark US 10-year bond yield dipped under 1.5% for the first time since 2016, steadying to close at 1.53% (1.58% yesterday). Better-than-forecast US Retail Sales soothed fears that the US could be headed for a recession and lifted the Dollar, which had earlier fallen. The Dollar Index (USD/DXY) rose to 98.096, up 0.11%. A call for a “significant and impactful policy package” in September by rate setting committee member Ollie Rehn pushed the Euro 0.35% lower to 1.1113 (1.1136). The Dollar steadied against the Yen to close at 106.03 (105.95 yesterday). Sterling rallied to its highest close in a week to 1.2105 (1.2055) on news that the Labour Party was preparing a bid to oust Boris Johnson and stop him from leaving the EU without a deal. Better UK inflation and retail sales data have eased concerns of a weakening economy. The Australian Dollar finished 0.25% higher at 0.6778 (0.6750) after the economy created a robust +41,100 Jobs in July (against a forecast rise of 14,200).

Forex Factory US Core Retail Sales Chart – 16 August 2019

Wall Street stocks managed gains after another volatile session. The DOW was up 0.67% to 25,615 while the S&P 500 rose 0.5% to 2,851.
President Trump signalled better chances of a trade deal with China while repeating his criticism of the US Federal Reserve. Meanwhile, Fed policymakers and noted doves Kashkari (Minneapolis) and Bullard (St Louis) kept their bearish views intact while keep a watch and wait stance.

EUR/USD – The Euro fell after ECB policy maker and Bank of Finland Governor Ollie Rehn said that the “ECB needs to come up with a significant, impactful policy package” in September. EUR/USD dipped to 1.10915 before settling to close at 1.1110 (1.1137).

DAILY FX STERLING CHART – (1H) – 16 AUG 2019

GBP/USD – After two days of solid economic data (inflation and retail sales) the British Pound climbed to over one-week highs at 1.21509 before settling at 1.2105 from 1.2055 yesterday. The UK Labour Party said that it would call for a no confidence vote in Boris Johnson’s government as soon as it believes it can win it and form a government to delay Brexit. A paring of short GBP bets, running at multi-year highs added to the Pound’s support.
AUD/USD – The Aussie Battler rebounded 0.75% to 0.6778 after the economy added a robust 41,100 Jobs in July beating median forecasts of +14,100. The Unemployment rate was unchanged at 5.2%
USD/JPY – The Dollar held against the Yen, managing a modest gain of 0.15% to 106.03 (105.93 yesterday). Safe haven flows into the Japanese currency slowed after President Trump tweeted he thinks that the trade war with China will be fairly short.

On the Lookout: Markets will focus on upcoming economic data reports as we head to the second half August where data and events will pick up. Traders will be watching the rhetoric from China in reaction to Trump’s latest tweet that he thinks the trade war will be fairly short.
Economic data releases today are light with most of them coming from the US.
Earlier today, New Zealand’s Business NZ Manufacturing Index dipped to 48.2 in July from 51.3. Japanese Investment in Japanese Stocks and Foreign Bonds round up Asia data.
Euro area data follows with the Euro zone’s Trade Balance. US data reports today start with US Building Permits and Housing Starts. Finally, the US reports on its Preliminary University of Michigan Consumer Sentiment and UOM Inflation Expectations.

Trading Perspective: The fall in US bond yields was matched by those of it’s Rivals. This provided support for the Dollar, enabling the USD/DXY to climb 0.11%. Which should be mildly supportive of the Greenback in Asia today. Germany’s 10-year Bund yield slumped to -0.72% (-0.65% yesterday). Japan’s 10-year JGB yield was down 2 basis points to -0.25%. Australian 10-year treasuries were yielding 0.88%, 6 basis points lower than yesterday.
It’s a Friday and an ideal day to trade ranges. There will be opportunities on both sides. Bullish or bearish, choose your levels well.

USD/JPY – The Dollar finished in New York at 106.02 steadily climbing to 106.10 this morning. The rate differentials between the US 10-year and its Japanese counterpart narrowed however the risk-off stance has eased. This should provide trading opportunities in this puppy to trade either or both sides. Immediate support lies at 106.00 followed by 105.70 (overnight low 105.703). We could be forming a consolidative range between 105. and 107. Work your levels on those parameters. Look to trade a likely range between 105.90-106.90. Prefer to buy on dips. Remember that speculators have now turned long JPY (COT/CFTC) report yesterday.
EUR/USD – The Euro retreated following ECB policymaker Rehn’s comments on the need for significant ECB stimulus at their meeting next month. The Euro rallied to a high at 1.11583 before settling at 1.1115 this morning. Immediate support lies at 1.1090 (overnight low 1.10915) followed by 1.1070 (strong). Immediate resistance can be found at 1.1140 and then 1.1180. Look for a likely range today of 1.1090-1.1160. Prefer to buy dips.

RBA – AUD TWI Table of Currency Weights – 16 August 2019

AUD/USD – The Aussie Battler survived massive bearish sentiment that saw the Australian Dollar Trade Weighted Index slide to over a decade low. This is the currency measure preferred by RBA when considering policy (as opposed to AUD/USD). The main trading AUD TWI currencies are Chinese Yuan, Japanese Yen, Euro and the US Dollar (roughly 58% of the AUD TWI weight). Other currencies are the South Korean Won, Indian Rupee, New Zealand Dollar, Singapore Dollar and the British Pound (as at 2018). From this writer’s trading experience, the RBA will not lower rates if things stay the same given the low AUD TWI. The Aussie has immediate support at 0.6740 followed by 0.6710. Immediate resistance can be found at 0.6800 and 0.6840. Look for a likely range today of 0.6755 and 0.6815. Prefer to buy dips.

Happy Friday and trading all.

Dollar Rallies on Strong Sales Data, Pound Plummets

July 17, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Brexit, Cryptocurrencies, EUR-USD, financial services, Fintech, FX trading, GBP-USD, Retail Fx, Sino-U.S. trade talks, trading platform, USD/JPY

Summary: A strong rise in June US Headline and Core Retail Sales, up 0.4%, easily median forecasts of 0.1%, lifted the Dollar Index (USD/DXY) 0.47% to 97.391. The British Pound plummeted to April 2017 lows (1.23964) as risks build for a no-deal Brexit from the two top candidates for the UK prime ministership. A fall in Germany’s ZEW Economic Sentiment, due in part to the China-US trade conflict, pulled the Euro 0.44% lower against the Greenback to 1.12019, one-week lows. The Australian Dollar retreated to 0.7010 from 0.7040 yesterday, weighed by broad-based US Dollar strength and President Trump’s latest trade tariff threat. Trump said that he could impose additional tariffs on Chinese imports if he wants. And a trade agreement with China had a long way to go. USD/JPY rallied to 108.27 from 107.90 yesterday. EM currencies were mostly lower against the Greenback.
Wall Street stocks slipped at the close. The DOW was modestly lower at 27,325 (27,345) while the S&P 500 dipped 0.38% to 3,003 (3,014 yesterday). US bond yields rose with both the 2-and 10-year treasury rates up a couple of basis points.

Forex Factory – US Retail Sales – 17 July 2019

The UK’s Unemployment Rate matched expectations at 3.8% although Claims for Unemployment benefits rose to 38,000 against a median forecast of 18,900.

EUR/USD – slip-sliding away, the Single currency dipped further to 1.1208 (NY close) after a deterioration in sentiment from German investors. Dovish expectations from the ECB have prevented the Euro from taking advantage of US Dollar weakness earlier this week.

Forex Factory – UK Claimant Count Change (Unemployment Claims) – 17 July 2019Forex Factory – UK Claimant Count Change (Unemployment Claims) – 17 July 2019

GBP/USD – The British Pound extended it’s decline, falling to fresh 27-month lows against the Dollar to 1.23964 before settling at 1.2410. Leading candidates for UK leadership, Boris Johnson (Conservative) and Jeremy Corbyn (Labour) are both pushing for a hard Brexit stance. Sterling also fell against the Euro to the lowest this year.
AUD/USD – The Aussie gradually lost ground against the strengthening US Dollar, closing at 0.7010, down 0.37%. Trump’s latest tariff threat didn’t help the Australian Dollar. RBA meeting minutes released yesterday revealed that the Aussie central bank was willing to adjust policy “if needed” to support growth and inflation.

On the Lookout: Following two sets of better-than-expected US economic data, expectations of deep Fed rate cuts have been watered down. Meantime, data from Europe and the UK continue to underwhelm and pressurise their currencies. We go back to the theme that the Dollar is the best performer among an ugly bunch. Data releases and comments from officials from here on in will take on added significance. We are also in the middle of the Northern Hemisphere summer holiday break. Which leads to the lack of FX volatility. Expect that to pick up next month, after the Fed July 30-31 policy meet.
Today presents a data dump from the UK, Europe and the USA. Australia’s Westpac June Leading Index of Economic Activity is Asia’s only report. The UK reports on its June Headline and Core CPI (y/y), PPI input and output (June), and Retail Price Index. The Eurozone reports on its Final Headline and Core CPI for June (annual). Canadian Headline and Trimmed Means CPI and Manufacturing Sales kick of North American data. The US reports on its Building Permits, Housing Starts and the Fed’s Beige Book Economic Report.

Trading Perspective: The Dollar ended on a strong note, supported by both fundamental and technical factors. Market positioning has seen a chunk of Dollar long bets cut. A Fed rate cut of 0.25% at their July 30-31 meeting is virtually priced in. This lends support to further short-term Dollar strength. US bond yields have stabilised with the 10-year yield around 2.10%. Overlooked last night were comments by Chicago Fed President and FOMC member Charles Evans. Evans said that there was an argument for a 0.50 basis point decrease in interest rates before the end of the year to get inflation up. While Evans is a noted bear, and his view run contrary to another regional Fed head (Dallas’s Robert Kaplan), Fedspeak should also be monitored.
The latest COT/CFTC report (week ended 9 July) saw total net long Dollar bets much unchanged. The stronger-than-expected US Jobs (5 July) report renewed selling of EUR, GBP and JPY. We look at the breakdown in tomorrow’s commentary.

EUR/USD – The Euro slid back to an overnight and one week low at 1.12019 before a slight bounce to 1.1210 in early Asia. Immediate support can be found at 1.1200 followed by 1.1180. Immediate resistance lies at 1.1230 and 1.1260. Apart from overall US Dollar strength, the Euro has been pulled lower by the British Pound. Traders are also expecting the ECB to push rates, already in negative territory lower later this year. Overnight German 10-year Bund yields stood at -0.25%, unchanged from yesterday. While US 10-year rates climbed 2 basis points. Expect the Euro to stay under pressure with a likely range of 1.1200-1.1240. Prefer to buy dips.

DAILY FX – GBPUSD Chart – 17 July 2019

GBP/USD – “The Pound is sinking”, sang Paul McCartney in 1982. Sterling slumped to lows not seen since April 2017, lower than its flash-crash earlier this year. And the move has been more of a slower grind this time round. The British Pound crumpled under the building risk of the UK leaving the EU without a trade deal. Both leading candidates in the leadership race seem to be vying for who has a harder Brexit stance. Which traders see as leading the BOE to have to lower interest rates to stave off an economic disaster. GBP/USD has immediate support at 1.2390 (overnight low of 1.23964). The next support level can be found at 1.2360 followed by 1.2320. Look for a likely range of 1.2385-1.2485 today. Prefer to buy dips with a tight stop near current levels.
AUD/USD – The Australian Dollar retreated to just above 0.70 cents on the overall stronger US Dollar. RBA meeting minutes revealed the Australian central bank as dovish leaning. Trump’s latest tariff threats also weighed on the Battler. AUD/USD closed at 0.7010. Immediate support can be found at 0.7000 followed by 0.6970. Immediate resistance can be found at 0.7030 and 0.7050. The latest COT/CFTC report saw a further trimming of AUD shorts by speculators to -AUD 54,007 in the week ended 9 July from -AUD 58,735 the previous week. Look to trade a likely range today of 0.6990-0.7030. Prefer to sell rallies.

Happy trading all.

Fed Rate Cut Euphoria Lifts Stocks, Plagues Dollar

July 15, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Brexit, EUR-USD, Fintech, FX trading, GBP-USD, Retail Fx, Sino-U.S. trade talks, trading, trading platform, USD/JPY

Summary: Increased expectations of a Fed rate ease at the end of this month continued to plague the Dollar and lift stocks. US data on Friday showed that Producer Prices increased 0.1% in June as most analysts had forecast. This followed Thursday’s stronger-than-expected climb in US Core CPI to 0.3% in June, its largest rise since early 2018. The Dollar Index (USD/DXY), a popular gauge of its value against a basket of foreign currencies, fell 0.34% to 96.722 from 97.056 Friday. Japan’s Yen outperformed. USD/JPY slumped 0.65% to 107.90 (108.52). The Euro advanced to 1.1269 (1.1253) The Australian Dollar rallied to 0.7024, up 0.32% while the Kiwi was up 0.36% to 0.6697 (0.6664).

Forex Factory US Core CPI Table – 15 July 2019

US treasury yields eased. The benchmark 10-year rate closed at 2.12% from 2.14%.
Wall Street stocks extended gains. The DOW finished 0.83% higher to 27,310. From 27,090.
Japanese Revised Industrial Production underwhelmed at 2.0% against a forecast 2.3%. China’s Trade Surplus in June climbed to CNY 345 billion from the May’s CNY 279 billion.
Germany’s Wholesale Price Index slumped to -0.5% in June from the previous month’s 0.3%.
Eurozone Industrial Production beat forecasts, climbing to 0.9% against an expected 0.2% rise.
Fed speakers John Williams (New York) and Charles Evans (Chicago) both weighed in their preference for monetary policy accommodation in the short term.

USD/JPY – The Dollar lost 0.66% against the surging Yen to 107.87 in late New York from its opening of 108.52. In contrast to the 2 basis-point fall in US 10-year yields, Japan’s 10-year JGB yield climbed 2 basis points to -0.13%.
EUR/USD – The Single currency advanced to 1.1270 at the NY close, near it’s overnight highs (1.12749). The Euro’s rally remained constrained by market expectations that the ECB will cut the discount rate in its September meeting.
AUD/USD – The Aussie rallied above 70 cents to finish at 0.7024, up 0.47% (0.6975 Friday). The Aussie’s corrective rebound took it to highs seen a week ago. Aussie traders will look out for today’s Chinese trifecta of top-tier data released later today.

Trading View – USD DXY Chart – 15 July 2019

USD/DXY – The Dollar Index closed 0.34% lower to 96.722, not far off from its overnight and one-week lows. The Greenback’s was broad-based. Only a few Emerging Market currencies managed lost ground versus the US Dollar.

On the Lookout: A Japanese bank holiday should see a slow start to markets today in Asia. At least until Chinese releases its trifecta of first tier data beginning with Q2 GDP, Fixed Asset Investment (June), Industrial Production and Retail Sales. China will also release its Unemployment Rate for June. Swiss PPI is the lone European report. US Empire State Manufacturing round up today’s reports.
Tomorrow sees a busy start to the week with New Zealand’s Q2 CPI report, the RBA Meeting Minutes release, and US Headline and Core Retail Sales.
Fed speak will also figure prominently throughout the week. The highlight will be Wednesday’s speech by Fed Chair Jerome Powell in Paris, France on “Aspects of Monetary Policy in the Pro-Crisis Era”. Powell is a guest at the France G7 2019 Presidency ceremony.

Trading Perspective: The Dollar’s next move depends much on where US yields head. On Friday, the benchmark US 10-year yield slipped 2 basis points to 2.12%. Other global yields were higher (by contrast) or flat. This pressured the Greenback. The Dollar Index (USD/DXY) lost 0.34% to 96.722, just above immediate supports. With a 0.25% rate decrease from the Fed at the end of this month pretty much priced in, we would need to see a slide in US yields for more Dollar losses. Market positioning will also have an impact. Data released tomorrow on the latest COT/CFTC report will be interesting. And definitely worth looking at.

Daily FX USD JPY Chart – 15 July 2019

USD/JPY – The Dollar fell most against the Yen, by 0.66%, as a slip in US 10-year yields contrasted with a climb in Japanese 10-year JGB yields. The net differential narrowed 4 basis points. USD/JPY traded to an overnight and 1-week low at 107.805 before settling at 107.90 this morning. USD/JPY has immediate support at 107.70/80 followed by 107.50 and 107.20. Immediate resistance can be found at 108.10 followed by 108.40. With Japan out for a bank holiday (Marine Day), expect a relatively quiet day with tight ranges. Prefer to buy dips with a likely trade between 107.70-108.30 today.
AUD/USD – The Aussie Battler has bounced back strongly in true fashion from 0.6925 a week ago to 0.7025 on Friday. AUD/USD opens in Sydney at 0.70195. AUD/USD has immediate resistance at 0.7040 followed by 0.7070. Immediate support can be found at 0.7000 and 0.6975. Aussie traders will be watching China’s trifecta of first tier releases today. Tomorrow sees the release of the RBA’s latest meeting minutes. Look for a likely range today of 0.6980-0.7030. Just trade the range shag on this one.
EUR/USD – The Euro grinded higher from 1.1240 to 1.12749 overnight, settling at 1.1268. The Single currency has been stuck in a relatively tight range 1.1200 and 1.1400 for most of 2019. Broad based US Dollar weakness has failed to boost the Euro, constrained by a dovish ECB, which seems to be a step just behind the Fed. Short speculative Euro bets have continued to dwindle which makes the currency less likely to rebound strongly. EUR/USD has immediate resistance at 1.1280 followed by 1.1310. Immediate support can be found at 1.1250 and 1.1220. Look to trade a likely 1.1240-1.1290 range today.
USD/DXY – The Dollar Index has good support at 96.50 followed by 96.20. Immediate resistance can be found at 97.00 and 97.30. Looking like a range trade today between 96.60-97.10. Just trade the range shag on this puppy too.

Have a good week ahead all, happy trading.

ActivTrades Sets Up Premium Cashback Program After Launch of Proprietary Platform

May 3, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: ActivTrader, Activtrades, Alex Pusco, Brokerhouse IG, CFD, FCA, market, online brokerage, Retail Fx, UK Financial Conduct Authority

ActivTrades, a London-based retail FX and CFD broker regulated by the UK Financial Conduct Authority, has launched a premium Cashback program, exclusively for eligible professional clients, where they are awarded rebates on spread and swaps, as well as interest on unused margin.

Customers are required to trade a monthly average of at least €50 million in notional volume (ex 500 lots of EUR/USD) in order to qualify for rebates, which are then calculated based on 20% of the target spread and 20% of the total swaps. In addition, the broker announced it will pay interest on the average free margin held by the customer during a calendar month, based on an annual rate of 1.25% for Euro, 1.50% for USD, 1.00% for CHF and 1.10% for GBP accounts.

Alex Pusco, Chief Executive Officer of ActivTrades

Alex Pusco, Chief Executive Officer of ActivTrades, commented:

“We are extremely excited about our new Cashback Program. This is a scheme that provides real value and full transparency for high volume traders. Clients enrolled in the scheme will find a new widget in the personal area of our website, showing the notional traded value balance and the potential or acquired rewards, in real time.”

Earlier this year, the award-winning online brokerage unveiled its advanced proprietary trading platform, ActivTrader, which is a product of ActivTrades’ commitment to innovation, boasting an intuitive interface that allows quick and flexible trading in a sophisticated environment.

Delivering online CFD trading services, ActivTrader offers a range of advanced features, including the ‘Market Sentiment’ function which provides a real-time indication of the market direction; the ‘one-click trading’ functionality, that allows the placement of orders (to market or pending) directly from the charts; and the ‘Net All’ feature which allows users to react to price actions and technical signals by quickly aggregating open positions on the same instrument.

At the time of launch, CEO Alex Pusco said the company “entered a new dimension” with its brand new ActivTrader Server. “Having performed brilliantly on thousands of demos last year, it is now processing live accounts. We look forward to considerably accelerating our growth and becoming the recognised leader in the Online Trading Industry. This server is our own property, and has been built to accommodate our present and future needs. And much like ActivTrades itself, it is versatile, fast, and open to change”, Pusco added.

In March 2019, the firm appointed Michael Lippa, former Managing Director of IG Group subsidiary, Brokerhouse IG, to the position of Chief Commercial Officer. He will be responsible for the growth of the company’s European operations and will report directly to founder and CEO, Alex Pusco.

Last year, ActivTrades set up a new office in the Bahamas, based out of Nassau, with the purpose of growing its international clientele base with a greater focus on South American and Asian regions.

CFTC Report Shows Interactive Broker’s 25% Rise in Forex Funds in February

April 4, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: brokerage, Brokers, Capital Markets, CFTC, FX trading, Gain Capital, Interactive Brokers, OANDA, Retail Fx, RFEDs, TD Ameritrade, trading platform

CFTC

The Commodity Futures Trading Commission (CFTC) has released data of retail FX deposits at US brokerages on Wednesday. The report also includes the data of FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and broker-dealers.

In the month of February, retail FX deposits at US brokerages increased by over $23 million, with the total coming in at $590 million, up by 4 per cent from $568 million reported in the previous month.

FX firms like Interactive Brokers, OANDA Corporation and TD Ameritrade witnessed an increase in Retail Forex Obligations during the month, whereas GAIN Capital reported a minor decline in its client’s assets.

After registering consecutive fall in market share, Interactive Brokers emerged as the best performer of the month overtaking TD Ameritrade. The market share rose by $13.7 million to $68 million, from $54 million at the end of January or 25 per cent month-on-month increase.

GAIN Capital’s client asset fell slightly by $106K to $248.2 million, which is marginal on the scale over a monthly basis. However, despite failing to gain much, the broker retained the title of largest FX broker in the United States, commanding a market share of 42 per cent.

Interactive Brokers, the largest US electronic brokerage firm, as measured by DARTs, surpassed TD Ameritrade as the US third largest holder of retail FX funds. Both the brokers have locked horns over the position number of times over recent months.

On the other hand, OANDA has also strengthened its position as the second largest by market share in the US with a total of 36 per cent share.

Broadway Technologies Acquires Baracuda FX, Retains Full Management Team

April 3, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Barracuda FX, Broadway Technology, brokerage, FX Operations, FX trading, Kieran Fitzpatrick, Retail Fx, trading technology, Tyler Moeller

Broadway Technology

Broadway Technology, the provider of forex and fixed income solutions, announced the acquisition of 100 per cent of Barracuda FX, a specialist FX order management technology company.

Through this acquisition, Broadway will continue to expand its product suite and delivering new multi-asset solutions across more part of its investment lifecycle, allowing clients to automate additional workflows. Both the company have not disclosed the terms and size of the deal.

Broadway Technology will not merge the operations of Barracuda FX into itself and will keep it as a separate and independent entity and has also retained full Barracuda FX team. It will continue to operate with its existing CEO, Kieran Fitzpatrick and COO, Maurice Curran. Both executives will also assume senior roles in Broadway Technology as Head of FX and Head of FX Operations.

Commenting on the acquisition, Tyler Moeller, the CEO of Broadway Technology said:

“Broadway is constantly thinking about what our customers need to meet new business, trading, and regulatory requirements. With this acquisition, we are continuing to invest in our ability to deliver a full- stack, multi-asset front-office platform that helps them meet these challenges.”

“This is a transformational acquisition and Broadway is excited to welcome the full Barracuda technology team. They are among the best in the industry and represent a tremendous level of institutional and industry credibility, and we are excited to work with them and deliver both of our award-winning solutions side-by-side.”

Kieran Fitzpatrick, the CEO of Barracuda FX also added:

“This is an excellent opportunity to introduce Barracuda’s award-winning technology and world-class service to a broader audience. Joining Broadway makes sense for Barracuda and for our clients, many of whom already use both firms for key components in their FX technology stack. Barracuda shares Broadway’s vision for the future of front office trading technology, and we look forward to taking leadership roles and building upon Broadway’s remarkable success.’’

With the combination of two entities, the client base of the companies includes 50% of the top global banks. Both entities will ensure the enhanced executive-level focus of FX and accelerated product roadmaps for clients.

Gaitame Reverses the January Trend, Reports Weakest Transactional Volumes Since 2017

March 12, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Brokers, Capital Markets, financial institutions, financial services, Forex, Gaitame, Japanese, Kabu, MUFJ, Retail Fx, trading platform

Japanese forex brokerage giant, Gaitame published its second monthly trading volumes data, reporting weakest transactional volumes since 2017. Despite a strong surge in trading volume in January, the brokerage house reported reversal in trend.

In February, the total number of accounts opened was 2828 accounts, bringing in total to 482,866 by the end of the month. Compared to the previous month, the increase is marginal at 0.6 per cent. In January, the brokerage opened a total 3,291 new accounts to reach 480,038 which is 0.7 per cent higher compared to the December month.

The transactional volumes during the month were ¥145.7 billion ($1.3 billion), which is 46.5 per cent lower compared to transactional volume in January at ¥272.2 billion. It is also lowest compared to more than a year from December 2017. The January’s transactional volume is 62.29 per cent more than that achieved in December 2018, and this is also the highest monthly transactional volume to be recorded since February 2016.

On yearly timeframe, the February 2019 volumes are 43 per cent lower from at ¥255.8 billion in February 2018. Although steep decline reported in transactional volume, the deposit amount managed to increase to ¥109.95 billion in February 2019, up from ¥109.5 billion in January ( a slight increase of 0.4 per cent).

Kabu Reports Slight Increase in Monthly Revenue in February

Another Japanese online securities broker, Kabu, the subsidiary of MUFJ has managed to record a slight uptick in revenue in February 2019. During the month, the revenue generated from brokerage commission came in at ¥554 million ($4.98 million), which is 20.2 per cent higher compared to the previous month from ¥461 million.

In the brokerage commission, the stock and equity trading contributed the most. The net operating revenue in the month of February 2019 came in at ¥1.269 billion, which is 3.5 per cent or ¥43 million higher compared to the previous month.

Market making, the group’s largest revenue making source also managed to post a healthy uptick of 9.1 per cent to ¥649 million from ¥595 million in January. Trading gains during the month came in at ¥69 million, up by 56.8 per cent compared to the previous month.

Brazil’s B3 Exchange Publishes Fourth Quarter and Full Year 2018 Financial Results, Reports Strong Volume and Revenue Growth

February 22, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: B3, Brasil Bolsa Balcão S.A, brokerage, Capital Markets, Financial markets, financial services, FX rates, Retail Fx, RPC, trading platform

The Brasil Bolsa Balcão S.A, commonly known as B3 and is one of the world’s largest financial market infrastructure provider by market value has published its fourth quarter and full year 2018 financial results.

The year, 2018 marked the first full year result for B3 and has managed to achieve a strong financial performance during the period. The B3 exchange came into existence after the merger of three separate exchanges, São Paulo Stock Exchange (Bovespa), the Brazilian Mercantile and Futures Exchange (BM&F) and CETIP. The exchange provides trading in all financial instruments including FX, stock indices, interest rates, commodities and more.

The full-year revenue for B3 is reported at R$5.352 billion ($1.42 billion) in all business segment, representing an increase of 20.6 per cent year-on-year. The BM&F segment during the period generated an average daily volume of 3.7 million contracts in 2018, a growth of 20.8 per cent compared to 2017.

The BM&F segment has the highest trading volume of contracts in Interest rate Brazilian real (BRL), with more than 1.9 million contracts, representing a rise of 2.3 per cent year-on-year. The strong volumes were mainly contributed due to the volatility and uncertainty in the market fueled by a reduction in interest rates in 2017 and the Brazilian elections in 2018.

The Interest Rates in USD contracts volume for FX Rates has been boosted by 31.6 per cent, due to the demand for hedging against exchange rate variations. The average daily volumes for FX Rates in 2018 were 690,100 contracts, an increase of 27.4 per cent from 541,800 contracts in 2017.

The revenue per contract (RPC) also managed to climb higher by 7.3 per cent year-on-year for the BM&F segment in 2018. Higher revenue realisation was mainly driven by 17.1 per cent appreciation in USD against BRL. More specifically, the average RPC for FX rates was R$3,355 ($890.50) in 2018 and RPC for interest rates in USD also grew by 18.6 per cent year-on-year.

In the fourth quarter of 2018, the average daily volume in the derivatives market (BM&F segment), came in at 3.7 million contracts, reporting a growth of 15.6 per cent compared to the final quarter of 2017. The growth in the final quarter was mainly driven by 41.7 per cent increase in the volumes of Interest rates in USD and 26.7 per cent year-on-year growth in FX rates. The trading volume for stock indices also doubled during the final quarter.

Digital Vega Adds Two Veteran Executives to Institutional FX Options Business

February 18, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: Digital Vega, Financial markets, foreign exchange, Fx Option, FX trading, OTC derivatives, Retail Fx, trading platform

Digital Vega has appointed two senior appointments in order to support its expanded product development strategy for its leading FX Options e-trading platform. The firm, which will shortly add two new salespeople, has recently hired two new senior developers.

The provider of FX Options trading solutions named industry veteran and ex-Tullet Prebon executive Simon “Benny” Lewis as Head of Interdealer Solutions. “Benny” spent 20 years at Tullett Prebon, building a market leading exotic options desk from scratch, and ultimately being appointed Global Head of FX Options, until retiring in 2016.

“Transparency, regulation, and efficiency are driving the evolution of Capital Markets, and trading firms are increasingly looking to trade more of their FX options online as a result. Digital Vega has already built a strong business and reputation in the Dealer to Client market, and I am really pleased to be able to lead the new Interdealer initiative,” Simon Lewis commented on his appointment.

Digital Vega has also appointed Romain Camus as Head of Exotic Options. Camus, who spent 15 years working in foreign exchange in addition to roles in both commodities and equities, joins the company from VTB where he was Executive Director, Head of Foreign Exchange Structuring. His vast career includes roles as Structurer at Goldman Sachs and Deutsche Bank.

“Joining Digital Vega was an obvious decision for me, as it has an innovative set of products and an impressive client list, which provides a tremendous foundation of success to build upon. Building and delivering an Exotics and Wealth Management platform will capture the growing volumes in this asset class and satisfy client demand for the increased use of electronic trading solutions,” said Romain Camus.

Mark Suter, Executive Chairman and Co-Founder, Digital Vega, said:

“We are very pleased to welcome Simon and Romain to our growing team. They bring extensive domain knowledge, many years of experience working in our core markets, and valuable contacts that will help to fuel our development. Digital Vega is already recognised as the leading FX platform for trading vanilla options electronically, and our aim is to build on this success by adding new clients, extending our product coverage to Exotics and Wealth Management Solutions, and launching a unique new solution for the Interdealer market.”

Digital Vega is a leading provider of OTC FX option trading tools to the Institutional FX market. Its offering includes the Medusa FX Options trading platform which has gained attention as more OTC and derivatives markets migrate to electronic trading models, driven either by regulations or client demand.