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FxProTV

FxPro Currency Check 0730 03.07.2015

FxPro Currency Check 0730 03.07.2015

Simon Smith

Waiting…

With the US Independence holiday and the impending Greek referendum on Sunday, today is likely to be a day of relative subdued trading in FX markets and elsewhere. Yesterday’s US employment report set the tone for a softer dollar. Even though the unemployment rate moved lower and down to 5.3%, the combination of a softer headline jobs numbers and downward revisions to prior months it wasn’t the backdrop that served to seal the deal on a September rate increase from the Federal reserve. Interest ...

FxProUpdates

Margin Requirements Increased to 2% for new orders between Friday 12:00 to Monday 02:00.

Further to our previous communications regarding the Greek debt crisis and upcoming referendum on Sunday July 5, we would like to advise you of the following: Following a prudential approach, we have decided to increase margin requirements to 2% for trading the following instruments: - Euro crosses - G20 currency crosses - Precious metals In other words, the available leverage for trading the above instruments will be limited to 1:50. These new margin requirements will only apply to new ...

FxProTV

FxPro Currency Check 0730 02.07.2015

FxPro Currency Check 0730 02.07.2015

Simon Smith

Jobs and the dollar

We should see the focus move away from Greece today with the US nonfarm payroll numbers released a day early ahead of the long holiday weekend. Yesterday we saw the dollar flip a little higher on the firmer than expected ADP numbers and today's official numbers will go some way in determining whether the Fed are able to raise rates in September. The expectation is for a moderation in growth from the 280k rise seen in the May numbers, to around 230k in June. The unemployment rate is seen moving ...

FxProUpdates

EUR Trading Risk Update

EUR markets have been shaky this week, but we have yet to experience the kind of turbulence that many expect, given the gravity of the Greek situation. The EUR opened some 160 pips lower on Monday, but quickly retraced to fill that gap and even rose beyond its Friday close. It would appear that markets are having a hard time pricing-in such unprecedented events. Greece's missed loan repayment of 1.6 billion to the IMF yesterday. Along with the scheduled referendum on Sunday, ATM runs, capital ...

FxProTV

FxPro Currency Check 0730 01.07.2015

FxPro Currency Check 0730 01.07.2015

Simon Smith

Shaking off Greece

Yesterday showed that there is no second guessing events in Greece. There was no surprise to see the IMF deadline passing without payment, although Greece did put in a request for a last minute new deal, which was quickly rejected by Germany. That said, there will be a conference call today between Eurozone Finance Ministers, but hopes are not high for progress ahead of the weekend's referendum. In markets, there was a sense of stability yesterday, with peripheral bond yields falling modestly ...

FxProTV

FxPro Currency Check 0730 30.06.2015

FxPro Currency Check 0730 30.06.2015

Simon Smith

The message beyond FX

The single currency slowly but surely closed the opening gap yesterday. But make no mistake, this does not mean that markets are ambivalent towards the fate of Greece; it’s more the nature of spot FX. Looking elsewhere, such as the FX options market, together with equities, peripheral bond markets (Spain, Italy) and also safe haven assets (e.g. German bonds), all the signs are that the concern remains. Today, Greece is expected not to repay the EUR 1.5bln owed to the IMF. This is not a default, ...

FxProTV

FxPro Currency Check 0730 29.06.2015

FxPro Currency Check 0730 29.06.2015

Simon Smith

Risk aversion dominates after Greece

The Euro’s opening gap lower at the start of the Asian session is steadily being filled, with around half done so far. At the lows, the euro was 1.9% lower vs. Friday’s closing levels, but currently funds itself around 0.8% weaker vs. the dollar. You can find more on the weekend developments and the implications in our blog (“The single currency is to blame”). The situation is that the Greek financial system is half-frozen, with the stock market closed, together with banks. For the following ...

FxProUpdates

EUR High Volatility Alert 3

FxPro would like to inform you that all accounts are subject to normal trading conditions except our fixed spread accounts that shall be limited to 'close' only until spreads normalise. Kindly note however the above are subject to change and we shall notify you should this be the case.

Simon Smith

The single currency is to blame

Naturally there is a lot of noise as to who is to blame for all of this. The fact is no-one is to blame but monetary union itself. The events of the past few months and especially twenty four hours have been the ultimate manifestation of the short-comings of the single currency. There is not a financial crisis in history that has not been solved without a combination of debt restructuring, monetary and fiscal easing, together with a currency devaluation. OK, we’ve had two out of three, but the ...

FxProUpdates

EUR High Volatility Alert 2

With Greece's uncertain future in the Eurozone continuing to dominate the headlines, we would like to inform you that we are doing everything in our power to reduce the risk of trading EUR pairs. In order to provide a safeguard against a highly volatile market open, trading on EUR pairs may be subject to increased margin requirements. This depends on the outcome of today's decisive Eurogroup meeting, and how the situation in Greece unfolds over the rest of the weekend. Please be advised that, ...

FxProUpdates

EUR High Volatility Alert

Due to the ongoing uncertainty surrounding a possible Grexit from the Eurozone, we would like to warn you that high volatility on EUR pairs is becoming increasingly likely. All clients should be aware that as we move closer to a possible Grexit, the likelihood of markets opening on Monday with gaps, severe volatility, widened spreads and thin liquidity increases. Indeed, such market conditions are possible even before market close tonight. As a result, we think it prudent to advise you of the ...