USD/CHF hoovers around 0.9300 on broad US dollar strength

Risk-off market sentiment triggers a trip to safe-haven flows, boosts the greenback against the Swiss franc. Central banks across the planet, undecided between attacking inflation or stimulate growth. US ADP Employment Change crushed the analyst's expectations, increasing the Fed's QE reduction prospects. The USDCHF is edging higher for the 2nd consecutive day, is trading at 0.9277, barely up 0.04% during the New York session during the time of writing.

Dampened market sentiment prevails as witnessed with a sell-off in the equity markets. High energy prices and rising bond yields are the key drivers of the day. Central banks across the planet scramble to attack inflation, thus hurting economic growth, or keep the stimulus on the rear of the hypothesis that rising prices are temporary, as commented by Fed's Chair Jerome Powell.

The US 10-year Treasury yield is barely down one basis point sitting at 1.51%. The US Dollar Index, which tracks the greenback's performance against its peers, is up 0.41%, sits at 93.34, underpinning the USD/CHF price action.

The first US jobs report supports the Fed's bond tapering prospects

On the macroeconomic front, the US ADP Employment Change, which measures private company's hiring, revealed that hiring risen to 568K in September, more compared to 428K expected by investors. Further, the report added that labor shortages should fade as health conditions tied to the COVID-19 variant improve.

The ADP report put into the prevailing optimism by the Federal Reserve Chairman Jerome Powell, which said this 1 good employment report would convince him concerning the bond tapering process.

On Thursday, the US economic docket will feature the Initial Jobless Claims for the week ending on October 1, which will provide additional clues concerning the labor market in anticipation of the Nonfarm Payrolls report, to be released on Friday.

USD/CHF Price Forecast: Technical outlook

The USD/CHF is trading well above the daily moving averages (DMA's), supporting the upside bias, but in the last hour roughly, the pair has been pressured by solid resistance at 0.9307, which capped the move.

For buyers to resume the uptrend, they require a daily close above 0.9307. In case of that outcome, the following resistance levels will be 0.9332 and 0.9367

On the other hand, failure at 0.9300 could motivate sellers to exert downward stress on the pair. The first support will be 0.9230, accompanied by 0.9215.

The Relative Strength Index (RSI) are at 55, flattish, suggesting that the USD/CHF pair might consolidate before resuming the upside move.

Two trades to watch: WTI oil, FTSE

Oil looks towards the OPEC+ meeting for a decision on whether output will soon be ramped up further. The FTSE, along with European bourses weigh up stagflation concerns, energy crisis, Evergrande risks and Merck covid pill news.

WTI oil looks to the OPEC+ decision

Oil is edging just a few ticks lower at the start of the week, stalling around 75.60 as investors look ahead towards the OPEC+ decision. In the July meeting the group decided to up output by 400,000 barrels per day. However, the group is deciding whether to increase further as demand recovered fast than expected, pushing Brent to a 3 year high last week. The surge in natural gas is boosting the appeal of oil that is comparatively a cheaper energy option.

Where next for WTI oil price?

WTI oil trades has been extending its recovery from the late August low of 61.72. It trades above its ascending trendline and the RSI is supportive of further gains whilst it remains out of overbought territory. However repeated failures to break above 75.80 could see the sellers extend a move lower towards 74.00 the confluence of the ascending trendline support and July 30 high. It'd have a move below 73.00 to negate the near-term uptrend and expose 71.60 Sept 23rd low and August 3rd high. On the flip side, a force through 75.80 could open the entranceway to 76.64 and fresh recent highs.

FTSE futures pare gains as Evergrande concerns grow

European indices are pointing to a combined open in what is expected to be a quiet start. Stagflation and the vitality crisis are expected to keep a key theme this week. Concerns over Evergrande defaulting and contagion throughout the broader Chinese property sector are back to haunt the markets. Reports have emerged that Evergande is along the way of selling 51% of its property management unit which will help ease liquidity issues. Meanwhile upbeat news on drugs to fight COVID is offering some support. On Friday, Merck announced that molnupiravir a drug in R&D stage could be utilized as a pill to fight COVID.

Where next for the FTSE?

The FTSE's rejection at 7160 the falling trendline resistance sent the index back below its 50 & 100 sma on the daily chart. This along with the bearish RSI is keeping the seller's hopeful. It'd have a move below 6990 for the bears to get traction and head towards 6930 the reduced July 27. A rest below here could open the entranceway towards 6880 July 22nd low. Strong resistance is seen at 7080 today's high and the 200sma. A push beyond here could open the entranceway to 7133 high 23 & 27 September and 7160.

Dow Jones Futures Fall With Market Rally Attempt Underway; Tesla Rises On Deliveries

Dow Jones index futures fell Monday morning, along side S&P 500 futures and Nasdaq futures, as Treasury yields nudged higher again. The major indexes and leading stocks suffered heavy losses the other day, prompting a shift in the market direction to "correction."

Tesla (TSLA) reported booming third-quarter deliveries on Saturday. The EV maker delivered over 241,000 vehicles, far above Q2's record and also beating views comfortably.

The S&P 500 and Nasdaq plunged below their 50-day lines the other day and undercut their Sept. 20 lows. Growth stocks had their worst week considering that the coronavirus crash. While stocks rebounded Friday in low volume, that marks day one of a market rally attempt. For the present time, the market remains in a downtrend.

In such an environment, investors must have limited market exposure or be entirely in cash. Look for stocks with strong relative strength lines.

Netflix (NFLX), Datadog (DDOG), Mosaic (MOS), American Express (AXP), Bill.com (BILL), Quanta Services (PWR) and Paychex (PAYX) all have RS lines at or near highs, reflecting their outperformance vs. the S&P 500 index.

Netflix stock is in a buy zone now. In a healthier stock market rally, investors could buy NFLX, or see early entries on Datadog, Mosaic, Paychex and AXP stock.

Also keep an eye on Microsoft (MSFT) and Google (GOOGL). These tech megacaps' RS lines aren't far from highs. If MSFT stock and Google can reclaim their 50-day lines, it's a great sign for the Nasdaq.

As for TSLA stock, it absolutely was holding in a buy zone before reporting Q3 deliveries. Shares rose modestly early Monday. The RS line for Tesla isn't at a new high, but are at its best levels in nearly six months.

Tesla stock, Microsoft and Google are on IBD Leaderboard. Microsoft stock and Google also are on IBD Long-Term Leaders. American Express and PWR stock are on SwingTrader. Google stock is on the IBD 50.

The video embedded in this short article analyzed the general stock market action and reviewed Netflix, Mosaic and DDOG stock.

Infrastructure Bill Still In Flux

Meanwhile, the fate of the $1.2 trillion infrastructure bill remains unclear. House progressives are demanding significant progress, at minimum, on a multi-trillion dollar reconciliation tax-and-spend package before voting for the bipartisan infrastructure bill. But Democratic leaders now be seemingly looking to get centrist Democrats to accept a $2 trillion reconciliation package vs. the long-touted $3.5 trillion package. President Biden met with Democratic lawmakers Friday, telling them the infrastructure bill won't pass until there's "agreement" on the reconciliation bill.

Pelosi on Saturday now said the infrastructure bill needs to pass "well before" Oct. 31, when existing transportation funding expires.

Also, while Congress the other day extended government funding into early December, lawmakers still must approve a debt limit hike. Treasury Janet Yellen has pegged Oct. 18 whilst the likely government default date. Raising the debt limit without Republican votes could complicate the reconciliation package, which often could keep carefully the infrastructure bill in a holding pattern.

China's Evergrande, U.S.-China Trade

Hong Kong trading was halted for Evergrande Group and a property management unit. Hopson Development reportedly plans to purchase a 51% stake in Evergrande Property Services Group for a lot more than 40 billion Hong Kong dollars ($5.1 billion). Evergrande Group are at growing threat of default, missing multiple payments on dollar-denominated debt. The Hang Seng index fell 2.2%.

The U.S. Trade Representative Katherine Tai is likely to announce this morning that Biden Administration will not back from Trump-era tariffs on China. Tai will say that Beijing hasn't lived as much as the "phase one" trade deal. She will "engage" China on living as much as those commitments however not pursue "phase two" talks.

Dow Jones Futures Today

Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures retreated 0.3% and Nasdaq 100 futures lost 0.5%.

The 10-year Treasury yield rose 2 basis points to 1.49%, after retreating Friday. Crude oil prices were little changed with OPEC+ expected to keep slowly unwinding pandemic output cuts, despite concerns that will not sufficient. U.S. natural gas futures climbed.

Understand that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading within the next regular stock market session.

The GBPSEK exits the bullish track – Analysis – 30-8-2021

The GBPSEK pair faced strong negative pressures recently as a result of stochastic decline towards 20 level, to force it to exited the bullish track by crawling below 11.9613 support line and record some losses by moving towards 11.8670.

11.9400 level forms additional barrier against the negative trades, and stochastic continues to supply the negative momentum, to expect resuming the negative attack and target 11.8360 followed closely by reaching 11.7675 in the medium term period.

The expected trading range for today is between 11.9000 and 11.8360

The expected trend for today: Bearish.

Read our other articles on trading, trading, financial markets, options, currencies and forex.

USD/SGD to plunge towards the 1.28 level into 2022 – ANZ

Economists at ANZ Bank expect the MAS to start normalising policy at their April 2022 MPS. This can strengthen the USDSGD even as the US Federal Reserve starts to taper their bond purchases late this year.

Singdollar to decouple from the DXY once market prices in policy normalisation

“Although the MAS is unlikely to alter policy at their October meeting, we expect them to create the tone for a tightening next season, that will be SGD supportive. This would be the catalyst to break the present tight correlation between SGD and DXY.”

“Once the marketplace factors in policy normalisation more fully, the S$NEER will start to move towards top of the bound of the policy band.”

“Given that the US Fed's tapering is currently well priced in, it's unlikely to possess much influence on the SGD. We forecast SGD to get rid of 2021 at 1.32, and climb further to 1.28 into 2022.”

EUR/NOK to go back at 10.00 by year-end as Norges Bank delivers another hawkish tilt – ING

Norges Bank revised up the rate path yet again. The key rate was risen up to 0.25% and another hike will be December. EURNOK broke decisively below 10.1000 following the policy decision release. Economists at ING expect the Norwegian krone to emerge as an integral outperformer in risk-on periods thanks to its attractive yield profile.

NOK set to benefit from attractive yield profile

“The 25bp rate hike today was not at all a surprise to markets, and it was likely the announcement that another hike will likely can be found in December – and an update in longer-term rate projections – that generated some lift on NOK.”

“The newest interest rate projections imply a further 3 or 4 rate hikes by the finish of 2022.”

“Today's statement is likely reinforcing their education of trust among investors that the Norges Bank won't underdeliver in regards to following their projected tightening plan. The dissipation of some tail risks for global sentiment in the longer run may leave room for the NOK – backed by tightening cycles – to emerge as an outperformer.”

“We expect you'll see EUR/NOK back at the 10.00 level by the finish of the entire year, and also expect you'll view it trade consistently below the 10.00 mark in 2022. We think such a gradual appreciation profile for NOK won't tamper with the Norges Bank monetary tightening plans.”

EUR/JPY remains under great pressure and challenges 128.00

EURJPY extends the leg lower to the boundaries of 128.00. US 10-year yields trade near recent lows around 1.30%. Markets'attention remains on the FOMC event on Wednesday. EUR/JPY navigates the lower end of the number near the 128.00 neighbourhood on turnaround Tuesday, extending the bearish move for the sixth session in a line so far.

EUR/JPY centers around the Fed

EUR/JPY loses ground for the sixth consecutive session and extends the failed attempt to go further north of the 130.30 area earlier in the month.

Despite the risk-off trade gave away some strength in past hours, persistent concerns around China's Evergrande as well as the progress of the Delta variant continue to help keep the chance complex under scrutiny.

Furthermore, yields of the US 10-year reference note moved lower and re-visit the 1.30% area, some 8 bps lower from last week's tops past the 1.38% level.

No data releases on Tuesday leaves all the attention to the BoJ event in the initial start Wednesday seconded by the more relevant monetary policy meeting by the Federal Reserve.

EUR/JPY relevant levels

To date, the cross is down 0.06% at 128.17 and a surpass of 129.57 (200-day SMA) would strive for a proceed to 130.00 (psychological level) and then 130.74 (monthly high Sep.3). On the downside, the following support is available in at 128.14 (monthly low Sep.20) followed by 127.93 (monthly low August 19) and 125.85 (200-week SMA).

AUD/CHF TECHNICAL ANALYSIS

Since making a full of February, AUDCHF has been doing a down trend, making lower highs and lower lows. The move lower accelerated in early July and made the low at 0.6513 in late August. In doing so, the cross broke down through two support levels from previous bottoms. The cross then rallied sharply back up through those breakdown pivot points, which suggests the marketplace rejected that bearish move for now.

To break the down trend, you will find quantity of resistance levels that will have to be overcome. Immediately above the marketplace is the most recent high at 0.6825. The descending trend line currently will come in at 0.6880 and the 100-day simple moving average (SMA) is presently at 0.6853. Above that, there's a reverse pivot point at 0.6892 and a previous high at 0.7003 that will offer resistance.

On the downside, the 21-day SMA at 0.6690 may provide some support and the two previous lows of 0.6514 and 0.6363 might provide some support if those levels were to be tested.

NZD/CHF TECHNICAL ANALYSIS

NZD/CHF includes a similar set-up to AUD/CHF, except that the former's rally lately has applied for a couple of more topside resistance levels. The recent run higher has seen NZD/CHF break through the top of the descending trading channel. It's trading above the 100-day SMA at 0.6521 and that level may provide some support, accompanied by recent lows near 0.6500. On the topside, the May high at 0.6570 might offer some resistance.

CAD/CHF TECHNICAL ANALYSIS

The CAD/CHF cross rate has spent periods within various trading ranges, and it could be the case so it has established a brand new one after having broken lower in August. The move back up from that low was fast and it's now trading inside a broad range again.

A range-trading envelope is showing potential resistance at a recent a lot of 0.7385 and at the 100-day SMA at 0.7352. Support may be provided at the reverse pivot point at 0.7174 or the last low at 0.7088.

The 21-day SMA, 2 standard deviation Bolling Bands are illustrating that the CAD/CHF is in the midst of recent price action. If a break-out of the range was to occur, there's an underlying bias toward a down trend in place. Trend line barriers may offer resistance at 0.7305 and initial support at 0.7125.

A Basic Guide To Forex Trading

What is Forex trading? The foreign exchange market (dubbed forex or FX) is the market for exchanging foreign currencies. Forex is the greatest market in the world, and the trades that happen in it affect sets from the price of clothing imported from China to the total amount you pay for a margarita while vacationing in Mexico.

What Is Forex Trading?

At its simplest, forex trading is similar to the currency exchange you may do while traveling abroad: A trader buys one currency and sells another, and the exchange rate constantly fluctuates predicated on supply and demand. Currencies are traded in the foreign exchange market, an international marketplace that's open 24 hours per day Monday through Friday. All forex trading is conducted over-the-counter (OTC), meaning there's no physical exchange (as there is for stocks) and an international network of banks and other financial institutions oversee the market (instead of a central exchange, such as the New York Stock Exchange). A vast most trade activity in the forex market occurs between institutional traders, such as for example those who work for banks, fund managers and multinational corporations. These traders don't necessarily intend to take physical possession of the currencies themselves; they may simply be speculating about or hedging against future exchange rate fluctuations. Like, a forex trader might buy U.S. dollars (and sell euros) if she believes the dollar will strengthen in value and therefore be able to buy more euros in the future. Meanwhile, an American company with European operations could utilize the forex market as a hedge in case the euro weakens, meaning the worth of the income earned there falls.

How Currencies Are Traded

All currencies are assigned a three-letter code much such as for instance a stock's ticker symbol. While there are more than 170 currencies worldwide, the U.S. dollar is involved with a vast most forex trading, so it's especially helpful to learn its code: USD. The 2nd hottest currency in the forex market could be the euro, the currency accepted in 19 countries in the European Union (code: EUR). Other major currencies, so as of popularity, are: the Japanese yen (JPY), the British pound (GBP), the Australian dollar (AUD), the Canadian dollar (CAD), the Swiss franc (CHF) and the New Zealand dollar (NZD).

What Moves the Forex Market

Like any market, currency costs are set by the supply and demand of sellers and buyers. However, you will find other macro forces at play in this market. Demand for particular currencies may also be influenced by interest rates, central bank policy, the pace of economic growth and the political environment in the country in question. The forex market is open 24 hours per day, five days a week, which provides traders in this market the opportunity to answer news that may not affect the stock market until much later. Because so much of currency trading centers around speculation or hedging, it's essential for traders to be up to speed on the dynamics that can cause sharp spikes in currencies.

Risks of Forex Trading

Because forex trading requires leverage and traders use margin, you will find additional risks to forex trading than other types of assets. Currency costs are constantly fluctuating, but at very small amounts, this means traders need to execute large trades (using leverage) to make money. This leverage is fantastic in case a trader makes a winning bet because it can magnify profits. However, additionally, it may magnify losses, even exceeding the original amount borrowed. In addition, in case a currency falls too much in value, leverage users open themselves around margin calls, that might force them to offer their securities purchased with borrowed funds at a loss. Beyond possible losses, transaction costs can also mount up and possibly eat into the thing that was a profitable trade. On top of all that, you need to bear in mind that those that trade foreign currencies are little fish swimming in a pool of skilled, professional traders—and the Securities and Exchange Commission warns about potential fraud or information that may be confusing to new traders. Perhaps it's the best thing then that forex trading isn't so common among individual investors. In reality, retail trading (a.k.a. trading by non-professionals) accounts for just 5.5% of the entire global market, figures from DailyForex show, and a number of the major online brokers don't even offer forex trading. What's more, of the few retailer traders who take part in forex trading, most struggle to show a profit with forex. CompareForexBrokers discovered that, an average of, 71% of retail FX traders lost money. This makes forex trading a technique often best left to the professionals.

US SEC releases fresh investor alert against crypto investment scams

The United States Securities and Exchange Commission published a new alert about investment scams linked to digital assets and cryptocurrency.

The announcement, shared by the SEC's Office of Investor Education and Advocacy and the Division of Enforcement's Retail Strategy Task Force, highlighted the “devastating losses” faced by retail investors due to scams.

The SEC attributed the “rising popularity” of initial coin offerings, including cryptocurrencies, as the main reason for growing scams and exploits.

The SEC also said that the price surge of certain digital assets is a huge key factor for scammers to lure unsuspecting investors: “Investors may be less skeptical of investment opportunities that involve something new or ‘cutting-edge,' or could get swept up in the fear of missing out (FOMO).”

Investors'FOMO is principally caused by the recent bullish performance shown by numerous tokens and nonfungible token initiatives. The alert acknowledges that one of many main reasons for FOMO among investors is the mindset that “they will miss a chance to become very wealthy.”

To greatly help investors stay static in the clear, the SEC suggests digital asset investors understand and evaluate the risks along with taking care of warning signs for a possible scam, including promises of high investment returns, unclear license and registration status, and fake testimonials.

The SEC highlighted BitConnect's $2-billion scam that resulted in huge losses for the retail investors. “The platform allegedly paid investor withdrawals out of incoming investor funds and did not trade investors'BCHUSD consistent using its representations, leading the platform to collapse and investors to lose massive amounts of money,” the warning said.

On Sept. 1, Gary Gensler, the chair of the SEC, reiterated the need for a regulatory framework that will help crypto investors ward off scams and other related risks.

Gensler said that cryptocurrency's relevance within the next five to 10 years will be highly determined by a public policy framework. Supporting this statement, he explained, “Finance is all about trust, ultimately.”

XPT/USD – Platinum to fall back within the liquidity pool? for OANDA:XPTUSD by TheTradingRoom

We could currently see XPTUSD running for a channel break of the reduced channel limit this morning as price appears to have began its equilibrium continuation. The equilibrium zone in a chart represents the same quantity of buyers and sellers creating a price harmony seen by most as a “range&rdquo ;.

At this time our view is with this metal to continue trading lower and following the truth that price has recently broken through the foot of the lower limit of the channel, it seems likely that, carrying out a retest, price could well continue right the way down into the liquidity pool highlighted underneath the chart.

These institutional liquidity pools are formed when major players and market makers push price back to fill larger orders at better prices. We see this often across the markets and are often able to capatilise on the banks moves using these methods.

The idea here's to wait for a confirmed retest of the reduced channel limit, followed with a 2-3 bar continuation. Following succesful trigger, we are aiming to focus on the most truly effective side of the S&D zone below at approximately 970.00 with stops likely to be above 1012.00 offering a 1:2 risk/reward.

Should price fail to continue away from the reduced channel limit our view on the metal for today at least, will undoubtedly be invalidated.

CAC 40 Inches Higher As Lagardere Shares Surge

(RTTNews) - French stocks were moving higher on Thursday amid signs of consolidation in the media sector.

Investors await Eurozone trade balance figures as well as U.S. retail sales and jobless claims data later in your day for further direction.

Meanwhile, European Central Bank head Christine Lagarde is a result of speak at 1200 GMT.

The benchmark CAC 40 climbed 49 points, or 0.7 percent, to 6,632 after losing 1 percent the last day.

Lagardere jumped a lot more than 20 percent after Vivendi reached an agreement to get activist investor Amber Capital's 17.9 percent stake in the French media and retail group. Vivendi shares were down about fifty per cent of a percent.

Defense company Thales advanced 1.3 percent after keeping its 2021 financial goals.

Medical devices maker BIOCORP gained 1.3 percent because it announced an agreement with drug major Merck & Co Inc. (MRK) for the development and method of getting a particular version of Mallya device to monitor treatment adherence in the field of Human Growth Hormone.

Automaker Renault rose about fifty per cent of a percent even while industry data showed Europe's passenger car registrations declined in August and July after four months of accelerated growth.

The views and opinions expressed herein will be the views and opinions of mcdougal and do not necessarily reflect those of Nasdaq, Inc.

Margin Call

What Is really a Margin Call? A Margin Call occurs when the worthiness of an investor's margin account falls below the broker's required amount. An investor's margin account contains securities bought with borrowed money (typically a mix of the investor's own money and money borrowed from the investor's broker). A margin call refers specifically to a broker's demand an investor deposit additional money or securities into the account such that it is brought up to the minimum value, known as the maintenance margin.

A margin call is usually an indicator that one or more of the securities held in the margin account has decreased in value. When a margin call occurs, the investor must elect to either deposit more money in the account or sell some of the assets held inside their account.

Understanding Margin Calls

When an investor pays to buy and sell securities using a mix of their very own funds and money borrowed from the broker, it is named buying on margin. An investor's equity in the investment is add up to the marketplace value of the securities, minus the quantity of the borrowed funds from their broker.

A margin call is triggered when the investor's equity, as a portion of the full total market value of securities, falls below a particular percentage requirement (called the maintenance margin). If the investor cannot afford to pay for the amount that must bring the worthiness of the portfolio up to the account's maintenance margin, the broker may be required to liquidate securities in the account at the market.

The New York Stock Exchange (NYSE) and the Financial Industry Regulatory Authority (FINRA)–the regulatory body for many securities firms operating in the United States– requires that investors keep at the very least 25% of the full total value of the securities as margin.12 Some brokerage firms need a higher maintenance requirement—as much as 30% to 40%.

Obviously, the figures and prices with margin calls rely on the percent of the margin maintenance and the equities involved.

For instance, suppose an investor opens a margin account with $5,000 of their very own money and $5,000 borrowed from their brokerage firm as a margin loan. They purchase 200 shares of an inventory on margin at a cost of $50. (Under Regulation T, a provision that governs the quantity of credit that brokerage firms and dealers may extend to customers for the purchase of securities, an investor can borrow up to 50% of the purchase price.) Assume that this investor's broker's maintenance margin requirement is 30%.

The investor's account has $10,000 worth of stock in it. In this example, a margin call will be triggered when the account value falls below $7,142.86 (i.e. margin loan of $5,000 / (1 – 0.30), which equates to an inventory price of $35.71 per share.

Utilizing the example above, let's say the price tag on this investor's stock falls from $50 to $35. Their account is now worth $7,000, which triggers a margin call of $142.86.

In case a margin call isn't met, a broker may close out any open positions to create the account back up to the minimum value. They could have the ability to try this without the investor's approval. This effectively means that the broker has the best to market any stock holdings, in the requisite amounts, without letting the investor know. Furthermore, the broker might also charge an investor a commission on these transaction(s). This investor is held responsible for any losses sustained in this process.

Cyprus Watchdog Unsuspends the Licenses of Leadtrade and TTCM

The Cyprus Securities and Exchange Commission (CySEC) has announced so it has decided to withdraw the suspension of the authorisation of the Cyprus Investment Firm (CIF) from two companies.

The Cypriot financial regulator says that both Leadtrade Ltd and TTCM Traders Trust Capital Markets Ltd have complied with the provisions of the law regarding ‘Own'funds and ‘Capital adequacy ratio '.

CySEC has been very active recently, suspending many CIF licenses of entities that don't follow its mandatory guidelines. Just last Friday it informed the general public so it passed down a suspension of licenses to several forex and binary options brokers.

During a suspension period, brokers are banned to execute any orders from clients for buying financial instruments or provide any investment services in or outside of Cyprus. The suspended firms are also not permitted to promote themselves being an investment services provider or have relating advertisements. They must even close all open positions with regards to clients'contracts on their maturity date, or at an earlier date if the client so wishes, as well as return any funds and profits earned to existing clients.

CySEC further stipulates that any firm that has its licence suspended should mention on all its websites that its CIF licence has been suspended.

Weekly Fundamental Gold Price Forecast: The Tides Have Turned

Gold prices often benefit during periods of loose monetary policy and expansive fiscal policy. However it seems that one of those legs may have been kicked out in the last few days. The Federal Reserve's June policy meeting resulted in a accelerated timeline of withdrawal of monetary stimulus efforts, seemingly dragging forward rate hike expectations and implicitly the taper line. With inflation expectations pulling back throughout the board, gold's appeal while the mythical inflation hedge has been seemingly hampered.

Although global bond yields at the long end of the curve have started initially to pull back, it remains the case that inflation expectations are dropping faster, which includes created a churn higher in real yields. Assets that don't generate real returns (for example , cashflows dividends coupon payments ) often suffer during periods of rising real yields; gold checks this box.

Gold prices fell throughout the board a week ago on the rear of a resurgent DXY Index: gold in USD-terms (XAU/USD)plunged by -6.05%.But it wasn't just gold in USD-terms; gold in EUR-terms (XAUEUR) dropped by -4.08%; gold inGBP-terms (XAU/GBP)contracted -3.98%; and gold in JPY-terms (XAU/JPY) sank by -5.58%.

GOLD'S SHIFTING FUNDAMENTALS

The June Fed meeting helped enshrine the narrative that the US economy is regaining its long-term economic potential – and that recent hot inflation readings are destined too cool off. Gold prices have since entered a screen of time where US real yields have begun to rise. Shifts in the US Treasury yield curve, on balance, suggesting an interval with stronger short- and intermediate-term rates, has been in line with a tougher US Dollar. As things stand now, it's yet again an uphill climb for gold prices as investors seeking higher yielding and more growth-sensitive assets.

ECONOMIC CALENDAR WEEK AHEAD

The shift into the second half June, as is the case for most months during the entire year, sees a quieter economic calendar. The world's major economies have observed their labor market and inflation reports released and most central banks have dispersed from their meetings. By lacking meaningful ‘high'rated event risk on the DailyFX Economic Calendar, gold prices might not be afforded a catalyst to shift the sea change in narrative (and price action).

- On Tuesday, gold in USD-terms (XAU/USD) will soon be in focus as Fed Chair Jerome Powell testifies facing the U.S. House of Representatives on the Federal Reserve's response to the coronavirus pandemic.

- On Wednesday, gold in USD-terms is back the spotlight with the dueling May US Markit Manufacturing and ISM Manufacturing PMIs.

- On Thursday, gold in EUR-terms (XAU/EUR) could see increased interest with the release of the June German Ifo business climate survey. Additionally, gold in GBP-terms (XAU/GBP) could experience some volatility across the Bank of England rate decision. Finally, gold in USD-terms is back focus with the release of the May US durable goods orders report.

- On Friday, gold in EUR-terms is in the spotlight again with the July German consumer confidence report. Attention on gold in USD-terms caps the week, with the May US PCE and core PCE readings as well as the June US Michigan consumer sentiment survey.

GOLD PRICE VERSUS COT NET NON-COMMERCIAL POSITIONING: DAILY TIMEFRAME (JUNE 2020 TO JUNE 2021) (CHART 1)

Next, a review of positioning in the futures market. According to the CFTC's COT data, for the week ended June 15, speculators decreased their net-long gold futures positions to 209.4K contracts, down from the 213.7K net-long contracts held in the week prior. When gold prices last traded below 1800, gold futures positioning was less significantly net-long at 170.6K contracts. Further liquidation of futures longs could see more losses accumulate in spot gold prices.

IG CLIENT SENTIMENT INDEX: GOLD PRICE FORECAST (JUNE 18, 2021) (CHART 2)

Gold: Retail trader data shows 85.74% of traders are net-long with the ratio of traders long to short at 6.01 to 1. The number of traders net-long is 2.87% less than yesterday and 9.76% higher from a week ago, while how many traders net-short is 21.73% less than yesterday and 30.32% lower from last week.

We typically have a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall.

Traders are further net-long than yesterday and a week ago, and the mixture of current sentiment and recent changes gives us a tougher Gold-bearish contrarian trading bias.

AUD/USD regains 0.7450 on USD pullback, RBA in focus

AUD/USD takes the bids to refresh intraday high to 0.7455, up 0.15% on per day, during early Tuesday. In doing so, the Aussie pair reverses the prior day's pullback from the highest levels since mid-July while the USD Index (DXY) mark losses.

Having said that, the DXY drops 0.08% intraday to 92.13 by the press time, refreshing daily low, as market sentiment improves, also underpinning the demand for riskier assets like commodities and Antipodeans including the AUD/USD prices.

The greenback contrasts the US 10-year Treasury yields, up 1.7 basis points (bps) to 1.339% as well as the mildly bid S&P 500 Futures as markets in the US and Canada brace for weekly opening after the Labour Day holiday on Monday. It's worth noting that the US Treasury yields seem to answer Friday's downbeat jobs report for August, weighing on the Fed's tapering plan.

Additionally, no new virus cases in Victoria and hopes of the Reserve Bank of Australia's (RBA) delay in tapering also favor the AUD/USD buyers of late.

It must be noted, however, that the pre-RBA caution and fears of a spike in the virus-led hospitalizations in Australia challenge the pair buyers. Amid these plays, the Commonwealth Bank of Australia (CBA) said, “The near-term outlook is bleak, as extended lockdowns in NSW and Victoria cripple economic activity.”

Moving on, US dollar moves and risk appetite could entertain AUD/USD traders in front of the RBA decision. Although markets already brace for a late taper of the weekly bond purchase by the RBA, any surprises will be reacted with higher volume.

Technical analysis

AUD/USD recovery eyes a confluence of 100-day and 200-day EMA, followed by way of a downward sloping resistance line from early May around 0.7470–80. Alternatively, an ascending support line from August 23, near 0.7410 challenges pullback moves.

Japanese yen punches past 110

The japanese currency has posted slight losses for a second successive day. Currently, USD/JPY is trading at 110.16, up 0.17% on the day. It has been a relatively quiet week for the yen, which has been hovering near the symbolic 110-level.

Powell under scrutiny

An abbreviated Jackson Hole Symposium takes place on Friday. Because of strict health guidelines, the meeting is likely to be held virtually and has been scaled back from two days to just one day.

Fed Chair Jerome Powell could be the star attraction of the meeting, and Powell's speech could shake up the tranquil currency markets. Just 2-3 weeks ago, it had been almost certain that a Fed taper was imminent, and that policy makers would supply a roadmap of an imminent tapering. However, with the explosion in infection rates from the Delta Covid variant, the markets have since lowered expectations and caution may be the operative word ahead of the meeting.

What Powell says, or doesn't say might have an important affect the movement of the US dollar – a touch of a timeline would be bullish for the US dollar, while a speech that steers clear of any insight into tapering could translate into disappointment and weigh on the US dollar. If Powell delivers a snoozer at Jackson Hole, exactly what do we expect from the Fed? Probably, we'll get some taper details at the September policy meeting, with the Fed firing the taper trigger before the finish of the year.

The dollar's reaction to key US data today was muted. US GDP for the second quarter (QoQ) didn't provide any surprises, as the strong gain of 6.6% was very near the consensus of 6.7%. Jobless claims came in at 353 thousand, also within expectations.