feedback
Simon Smith

Waiting for Yellen

The dollar reaction to US payrolls on Friday was relatively muted, given the shake-out seen in the middle of last week of dollar longs, but most managed to put the positive above the negatives, which was probably the best way to look at it. Earnings were firmer and the unemployment rate was lower, but with wider measures of slack remaining steady. What the price action of last week has done is to once again change the dynamics of the FX market. The yen has unwound all of the losses seen against ...

Simon Smith

A more comfortable dollar ahead of payrolls

So, we are nearly at the stage where, in effect, you have to pay for the privilege of lending to a nation for 10 years, even though its total government debt stock is 2.5 times the size of the economy, the central bank owns one-third of it and they have grown an average of just over 1% a year over the past 5 years. Yes, it's Japan and not for the first time in recent history one can't help thinking what a mad financial world we currently inhabit. As I mentioned yesterday, the dollar was playing ...

FxProUpdates

Trading times for the Lunar New Year

The trading hours during the Lunar New Year Holiday, 2016 will be as follows: Date Holiday Symbols affected Trading 8/02/2016 - 10/02/2016 Lunar New Year #China H Shares Closed 8/02/2016 - 10/02/2016 Lunar New Year #HongKong50 Closed 8/02/2016 - 12/02/2016 Lunar New Year #ChinaA50 Closed The times mentioned above are in Cyprus time (server time). The above schedule may be subject to change. All other financial instruments will not be affected by the changes and will be available for trading ...

Simon Smith

The dollar dumped

Yesterday was not a good one for the dollar. If one looks at the dollar index vs. the US 2 year, the appearance is of a currency catching up with the message already baked into the bond market of a central bank that will struggle to raise rates again this year. The dollar was down more than 1% on the dollar index, with the currencies gaining the most generally those that have lost the most against the dollar so far this year, such as the Brazilian Real and the commodity currencies, principally ...

Simon Smith

Will Brexit Break Sterling?

Exchange rates and money markets are inextricably linked; after all you are just exchanging one form of money for another and the price of money (as an asset or liability) is tied up in the interest rate. If it was that simple, then forecasting exchange rates would just an exercise in future monetary policy changes. But it’s not that simple and so far this year there have been many examples of why this is not the case, of which sterling provides the most pertinent. There has been plenty of talk ...

Simon Smith

The yen turn-around

After last week’s surprise move from the BoJ, we’ve seen some tough talking from BoJ head Kuroda overnight, stressing that the BoJ will do their utmost to achieve their 2% inflation target. But the yen was pretty ambivalent to the comments, USDJPY nudging lower again overnight back below the 120 level. Stocks were unimpressed today as well, down more than 3%, with Japanese bond yields now negative out to 8 years. In other words, the price dynamics on the yen that were evident before the move ...

Simon Smith

RBA keeping the easing door open

US stocks clawed back their opening losses into the NY close on the back of comments from Fed vice chair Fisher, who suggested that the Fed does not have a pre-determined path for rates. The comment also weighed on the dollar into the close. It was no great surprise to see the RBA keeping rate steady, but the Aussie did nudge lower as the statement left open the door for further easing ahead, should inflation developments allow. The RBA is focused on the recent improvement in the labour market, ...

Simon Smith

New month, new paradigm

January felt like a very long month for most involved with markets, given the continued worries regarding China and the volatility seen in many asset markets. Friday’s move by the Bank of Japan proved to be the icing on the cake, although its eventual impact on the economy is likely to be a lot more muted. The impact on the yen remains in place, given that many were wrong-footed by the move. For currencies, the main take-away was that the conventional wisdom that prevailed going into the year ...

Simon Smith

Bank of Japan goes negative

There was plenty of speculation in the run to last night’s BOJ meeting that they would ease further and even though only a week ago the BOJ governor Kuroda suggested in Davos that further easing was on the cards, a move to negative rates was not expected. Understandably this caused some wild swings in the yen which weakened with USDJPY moving back above 120 and the Nikkei which strengthened. Other evidence of a weak Japanese economy came earlier in the week in the form of poor trade data and so ...

Simon Smith

Fed’s mixed signals

The recovery in risk assets was rather snuffled out after last night’s FOMC meeting which was dovish, but a little less dovish than many had previously hoped for. The reaction from the markets was mixed and unsurprisingly volatile as both equities and the dollar fell, however the greenback has recouped its losses overnight. When you look through these mixed movements what we do know is that since December the economic data has been rather on the soft side, but despite this it’s still likely ...

FxProUpdates

Margin requirements changes on Spot Indices & Energies

We are writing to inform you of several changes that are being made to our trading specifications. Please be advised that as of Friday, January 29th, we will be introducing dynamic leverage across MT4 and MT5 on Spot Indices, as well as adjusting the current tiers on Spot Energies and Energy Futures. Please press here to view more details on the new specifications of these instruments. Please be aware that these changes will also apply to existing positions, so we would like to advise you to ...

FxProUpdates

FxPro SuperTrader Updates

We are pleased to inform you that we have implemented new execution technologies that allow the opening and closing prices you receive in your SuperTrader portfolio to completely mirror those of the strategies that you are following. This means that there will no longer be a price difference in execution, including during volatile, high-impact news releases. We are constantly working to improve the platform so as to be able to provide the best possible level of service for our clients. Please ...

Simon Smith

Apple gives Fed food for thought

All eyes will be back on the Federal Reserve today as they make their first interest rate decision and monetary policy statement of the year but there are no economic projections or press conference this time round, which come at the next meeting in March. We’ve seen a rise in risk appetite in this final week of January which so far has been a bit of a blood bath, although the recovery from lows in many indices has softened the blow for many investors. This has come as a result of a bounce in ...

Simon Smith

Here we go again

The market’s ability to reverse any risk appetite at the moment indicates that we are not at the bottom yet of the current downward spiral. Chinese indices are 6% lower overnight, Japanese over 2% in the red and oil is back below 30 bucks a barrel. Volatility has been rising throughout the year so far but we’re still someway off the big spike in the Vix (volatility index or ‘fear gauge’) last August and so there’s potential for moves in markets to get even more dramatic. The week builds up from ...

Charalambos Psimolophitis

FX-MM Editor’s interview with Mr Psimolophitis

Charalambos Psimolophitis, CEO FxPro, tells FX-MM editor Peter Garnham how aligning itself with the goals of its clients is paying off for the FX broker and how technology is driving its rise to the top of the industry. The world is changing fast, and traders are increasingly able to take disruption in their stride according to Psimolophitis. In fact, he says, it is not just in the financial markets that we see that phenomenon, but in life more broadly as technology advances and the dynamics of ...

Simon Smith

Crude recovery

Today marks the first Monday in 2016 where we’ve seen gains for Asian indices and this is due to rub off on European markets that are looking to add to the bounce from the end of last week. The risk appetite has been seen markedly in commodity markets where crude prices are enjoying their biggest two day rally in seven years with Brent and Nymex firmly back above the $30 a barrel mark. This is causing a considerable squeeze on the short sellers and there could be further strength to come as we ...