Brokers Minutes

Bank of America Hires Former FXDD Executive, Tokyo Financial Exchange Releases Metrics

By Forexminute - Yashu Gola | Forex Industry News | Aug 2, 2014 2:02AM BST




The Bank of America has hired Sascha Szyfman as the Area Vice President in its Global Technology and Operations division. Previously, Szyfman worked for three years at FXDD, based in New York.

In his immediate role at FXDD, Szyfman managed the German customer support desk, where he addressed all the concerns of the German-speaking customers. He also coordinated the FX Options department at a time when the Dodd-Frank Act was enacted, prompting him to ensure reports were published in compliance with it and its European equivalent known as EMIR.

Szyfman, while working at the FX Options desk at FXDD, was responsible for trade execution, risk management and liquidity management as well as resolving settlement and trade allocation matters with the relevant parties.

At Bank of America Szyfman will oversee product control at the Global Technology and Operations unit that recently received significant resources as the bank moves to manage risk associated with new technologies.

Meanwhile, the Tokyo Financial Exchange announced that its Click 365 FX July metrics rose 5.6 percent MoM to 1,710,893 with the daily average standing at 74,384. This compares with a reading of 1,620,533 in June where the average daily trading volume stood at 77,169.

A closer analysis reveals that though the total figure in July was high, the average trading volume per day fell slightly. Much of the movements were attributed to the sentiment in the Australian dollar and British pound and commodity currencies such as Canadian dollar and the Australian kiwi.

The trading volume of the 3-month Euroyen futures last month stood at 195,180, a drop of 24.9 percent month-on-month.

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Kyrgyz Republic Warns Users against Bitcoin

By Forexminute - Deepak Tiwari | Bitcoin | Aug 3, 2014 7:54PM BST




In a warning issued by the National Bank of the Kyrgyz Republic the users in the country have been warned against Bitcoin and other similar virtual currencies. According to government bank recently the world has seen the emergence and spread of such new phenomenon of virtual currencies like Bitcoin; however, there are some inherent risks associated with them.

The government agency is of opinion that in Kyrgyzstan as well there are some organizations that are trying to promote the digital currencies. However, under the legislation of the Kyrgyz Republic the sole legal tender on the territory of the country is the national currency of Kyrgyzstan “som.”

Thus, according to it the use of “virtual currency” Bitcoins, in particular, as a means of payment in the Kyrgyz Republic will be a violation of the law of our state. The decision is in consonance with various governments like the ones from China, India and others that have issues similar warnings for Bitcoin users.

The Kyrgyz Republic’s national bank says that there are some fundamental problems with Bitcoin; for instance, there are risks associated with the lack of security as nobody has obligations on this “virtual currency” and they do not have the material (financial) support as well that can back them up.

Most of the Reasons Cited by the Kyrgyz Republic’s National Bank is Obvious

The government bank says that as opposed to the traditional paper-based or non-cash money held in banks, the digital currencies do not have a tangible material expression and operates on the basis of distributed electronic networks. Also, their circulation limited as it is carried out only within that network.

The Kyrgyz Republic’s national banks also observes that there is no real value of virtual currencies as the cost of virtual currency is not tied to any currency or other asset. Also, as the formation of its cost is influenced by demand and supply for it, according to the bank there is huge risk of exchange rate volatility and loss of value for customers.

The press release from the organization says that as the virtual currency is regulated by no central government agency in the world, it becomes difficult to have a tab on it when something heavily goes wrong. Also, as virtual currencies in the country are not under the jurisdiction of the National Bank, there are several risks for the users.


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Forex Vid

The EUR/USD is showing the strongest 4H push we have seen since falling in July from 1.37 to 1.3367. The fundamental factors this week were not enough to keep the USD-train rolling. However, the prevailing bearish trend is still intact, and if price pushes toward 1.35, we might see some sellers. Note that the 1.35-1.3510 lows from June will also be reinforced by a falling trendline that connects the high on the year at 1.3993 with July’s high around 1.37. The next key resistance after that will be 1.3575-1.36. A break above 1.36 would be a strong sign that the market is in a medium-term consolidation, and we should expect the current low around 1.3367 to stick for a while.

The GBP/USD has been bearish since the high on the year at 1.7190. Today, GBP/USD accelerated downwards after softer UK Manufacturing PMI. This price action broke below the 100-day SMA, and below a couple of key rising trendlines formed in 2014. Traders seem to be holding Cable above 1.6810 after the NFP report, but the overall bearish trend still look strong. If there is a bullish correction/consolidation next week, watch for sellers at the falling trendline, and around the 1.6950-1.6975 area. A break above the falling trendline suggests a longer period of consolidation and suggests we should respect the 1.68-1.6810 area as support in the first half of August. Otherwise, if the current downtrend is intact, the next key support level will be around 1.67, the lows in May/June.

The NZD/USD has formed a double bottom after this week of US data. It suggests at least a short-term consolidation, with some upside risk toward the 0.8575-0.86 area, which is likely to be reinforced by a falling trendline seen in the 4H chart. A break above 0.86 would suggest that we have put in a low for the first half of August around 0.8460. It could also be a sign of bullish continuation, because the rising trendline seen in the daily chart (from Sept. 2013), is still intact. Also note that price is essentially holding above the 200-day SMA, which shows that the bullish bias is intact. However, if you see price rejected from going above 0.86, there is downside risk back toward the 0.8450, 200-day SMA, and the rising trendline from Sept .2013.

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Visa Inc. CEO Charles Scharf Does Not Rule Out From Using Bitcoin

By Forexminute - Deepak Tiwari | Bitcoin | Aug 5, 2014 9:36AM BST




In his answer to the question whether Visa Inc. had any virtual currency plans among its payment blueprints, this Visa chief executive Charles Scharf said the company was open to facilitating the growing use of Bitcoin and others that may emerge. It looks Visa Inc. may in future may consider Bitcoin, the new technology that is transforming the way money is being seen and used.

Charles Scharf clears that Visa is not a currency, it’s a network and his company can process real or virtual currencies to the extent that it makes sense. According to him it is possible but his organization is not thinking about it currently. However, the company is moving towards digital currency as it launched digital laboratory to develop blueprint for the future of payments.

According to the blueprint from Visa Inc. a car’s*onboard computer may in the future be used for easy and convenient payment without any interruptions at restaurants, grocery stores and almost anywhere. Moving ahead towards the digital solutions the company last week unveiled Visa Digital Solutions, a technology agnostic suite of tools.
The suite of tools including software development kits that can be used by developers to turn any internet connected device into a payments system according to the company are going to help frictionless payment. The company is now seeing connected thermostats and cars and everything and in its view a lot of those things will become points of transaction.

Visa Inc. Not Showing Interest in Digital Wallets

Visa Inc. believes that its job is to allow that innovation to occur in way that is safe and secure and with the same characteristics as cards allow in the physical world today. Interestingly, though the company has shown its interest in facilitating online and mobile payments, it’s no longer interested in digital wallets.

In fact, Visa Inc. replaced its V.me digital wallet with Visa Checkout which it describes as an online payments experience. Sharing his views Sam Schrauger, senior vice-president of digital solutions at Visa, presides over its newly launched digital laboratory said that PayPal can*be called a wallet but it’s not *necessarily the initial intent which was to let people pay each other.

Sam Schrauger added that when someone drills down to what consumers see as pain in payment is delay; however, payment works best when it is a non-event i.e. it’s fast and nothing goes wrong.


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FX News Round-Up: Monex FX Volumes, EBS FX Figures, Liquid Markets Moves to London

By Forexminute - Yashu Gola | Forex Industry News | Aug 5, 2014 7:35PM BST




Japanese FX broker Monex Group Inc announced its global FX volumes for July, which indicated that volumes fell 7.9 percent compared to June. The July’s trading figures, at $29.0 billion, was the sixth straight month of decline.
However, the news weren’t unexpected given the low yen trading volumes in the month. The USD/JPY is the most actively traded pair in Japan, though the volumes fell to around 180 pips in July. Monex’s OTC FX unit saw volumes fall 18 percent to 53.8 billion yen ($524.6 million) per day. Any material recovery in the trading volumes isn’t expected until September as the summer progresses.

Meanwhile, ICAP’s electronic brokerage business EBS reported that July’s FX trading volumes fell 8 percent to $70.6 billion compared to $77 billion in June. The trading volumes were the second-lowest after April’s figures. *A few weeks ago, ICAP was reported to be mulling a shake-up of EBS management in order to inject fresh blood to help the company compete against ECN FXall, which is owned by Thomson Reuters.

In another report, retail FX brokerage Liquid Markets has moved to London and renounced its CySec license just two months after it obtained the Financial Conduct Authority license. Though moving to London is very costly for retail FX firms, Liquid Markets appears to consider the extra costs as worth it after scaling its initial growth stages in Cyprus.

Over the years, Cyprus attracted various companies seeking to benefit from low corporation tax and quick registration procedure. However, the allure of rapid expansion has attracted Cypriot FX brokers to shift operations to London in order to attract clients from Asia Pacific, Middle East and Russia, where clients trust the British regulatory system more.

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Two Banks in Argentina Shut Bank Accounts of Unisend, a Leading Bitcoin Exchange

By Forexminute - Deepak Tiwari | Bitcoin | Aug 6, 2014 10:12AM BST




Unisend, reportedly the only Bitcoin exchange in Argentina, is facing huge trouble as its bank accounts have been shut by the two banks it had been partnering with for the exchange’s fiat currency storage. In consequence to this the Bitcoin exchange says that it won’t be able to process the customers’ deposits and bank transfers the next couple of weeks.

The reports are that Unisend stopped customer deposits and bank transfers on Monday this week as two banks Banco Santander Río and Banco Gailicia suddenly closed its company accounts. It looks the decision was not instant as the two banks e.g. Santander and Gailicia sent Unisend written notification on 28th and 31st July, respectively.

The two banks cited Article 792 of Argentina’s code of commerce and justified their action. The code says that a banking relationship can be terminated at the request of a bank or its client provided 10 days notice is given. Despite the discontinuance of the services from the two banks, Unisend says that it won’t affect the services in long term.

It Won’t Affect the Bitcoin Exchange in Long Term Says Jose Rodriguez

Talking to media professionals Unisend partner José Rodriguez said that the exchange does not expect its services to be affected long term by the move as the company has excellent relations with other banking organizations and working to open new ones in case any other contingency arises. The company assured the customers that operations are continuing as usual.

Currently, close to 90% of users transfer money to Unisend from their bank accounts and the rest users deposit cash through payment processors like RapiPago ARS, PagoFacil, CobroExpress and BaproPagos, etc. The reports are that users can still use their bank accounts to transact with the exchange as the Unisend accounts aren’t set to close until later this week.



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China’s Yuan Edges Past Daily Fix for the First Time since March

By Forexminute - Yashu Gola | Forex Tips | Aug 6, 2014 9:58PM BST




China’s yuan rallied past the central bank’s daily fixing for the first time after its trading range was increased twofold on speculation the world’s second-biggest economy is improving.

The yuan appreciated 0.12 percent to 6.1633 per dollar at the close of trading in Shanghai after surging close to its highest level in five months of 6.1624. The closing level was up 0.08 percent past Wednesday’s reference rate of 6.1681, the first time the exchange rate surpassed the daily fix since the trading spread was expanded by 2 percent in March.

“Letting the market forces have a bigger role in the currency is a good sign that the central bank is comfortable with a modest gain in the yuan,” Irene Cheung, a strategist at Australia*& New Zealand Banking Group Ltd in Singapore, told Bloomberg. “External balances for China, including the*trade surplus*and capital flows, are constructive for the yuan.”

Investors are bubbling with optimism over China’s economic growth as manufacturing grew at the strongest pace in over two years in July while gross domestic product expanded 7.5 percent in the second quarter.

The Shanghai Composite Index of equities surged 7.5 percent in July, the most since December 2012, while the yuan has advanced 1.7 percent from a low of 6.2676 per dollar touched in April 30.

Meanwhile, the Royal Bank of Canada said that recent trading patterns indicate that the Canadian dollar may fall to its lowest level in four months against the US dollar as geopolitical risks such as Ukraine crisis affect investors’ risk appetite.
The loonie closed past C$1.0958 on Tuesday, close to C$1.1052 last touched on April 23. The Canada’s currency rose 0.3 percent to C$1.0925 on Wednesday after the country’s trade surplus rose to C$1.86bn (US$1.69bn) in June, the strongest level since December 2011.


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For a country which is under heavy debts and has mortgaged most of its natural assets for the same, Ecuador was always a perfect place to use cryptocurrencies. However, the government there took an innovative stand by first, banning all forms of decentralized digital currencies including Bitcoin, and second, announcing to launch its very own backed alternative.
And the project has finally started to roll, as per a report published on Bloomberg recently.

According to the reports, Republic of Ecuador will launch its official cryptocurrency in October this year. As its legislation has already been approved by the President Correa’s government last month, there would be no hassles in implementing this project. A monetary organization is also planned on papers for now, which will subsequently be regulating the yet-to-be-named coin. Most importantly, the coin will be backed by “liquid assets”, like oil.

The Ecuador’s Central Bank, Banco Central del Ecuador, has shied away from providing any more information regarding the upcoming launch. An earlier statement from National Assembly however is enough to fill the space, which says: “Electronic money will stimulate the economy. It will be possible to attract more Ecuadorian citizens, especially those who do not have checking or savings accounts and credit cards alone.”

However, an internet research brought us more facts to justify the Ecuador National Assembly’s reason to nod for a regulated digital currency. The country has an enormous debt on its shoulders, which has been mortgaged for its depleting oil and gold reserves. The US Dollar meanwhile is draining constantly from the economy amidst rising public spending since 2007. The idea here is to introduce an alternative currency so that the US Dollar can be preserved to pay back the debts.
The soon-to-launch cryptocurrency however won’t be distributed for free, like unbacked and rebellious Auroracoin. As per the available reports, it will be forced upon the citizens in exchange of Dollars. For obvious reasons, it won’t go down the throats of many.


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The number of Americans who filed for jobless claims plunged last week, indicating that the labor market continues to grow stronger. Fresh applications of state unemployment benefits declined 14,000 to 289,000 for the week through August 2, said the Labor Department on Thursday.

The number of jobless claims that were filed the previous week were revised to show an increase of 1,000 new applications. Economists in a Reuters survey had expected the claims to increase to 305,000 for the week through August 2.
The four-week moving average of jobless claims, widely viewed as a more accurate measure of labor market patterns since it smoothes out weekly volatility, plunged 4,000 to 293,500, matching a low last touched in February 2006.

“The underlying trend seems to be improvement in payrolls. The slower pace of claims would be consistent with that,” Stephen Stanley, a Stamford, Connecticut-based chief economist at Pierpont Securities, told Reuters.

The jobless claims have now reached a level where any room for more decline is limited as the job market normalizes. Hence, the pace of employment needs to accelerate for any significant job growth to occur.

The strengthening job market has fuelled speculation the Federal Reserve may increase interest rate soon. However, the Fed apparently isn’t in a hurry to do so as the number of disheartened job seekers, part-time employees and long-term unemployed remains large.

Thursday’s unemployment benefits report indicated those who are still under benefits fell 24,000 to 2.52 million in the week through July 26. The jobless rate for individuals who are still receiving the unemployment benefits stood at 1.9 percent for the fourth consecutive week.


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Gold broke to the upside yesterday as expected, market is now rallying in wave v of iii) that reached levels at 1322 today, just $1 away from 261.8% Fibonacci extension target. From that area we may see a reversal back into a fourth wave, that will be just another correction within ongoing strength.

GOLD 1h Elliott Wave Analysis



On German DAX we have seen a new low yesterday, a decline beneath 0.9000. But break-down came from a triangle and we know that triangles occur prior to the final move within a larger trend, so sooner or later market will recover. Ideally we will see a bounce in three legs back to former wave (iv) @9160.

German DAX (September 2014) 1h Elliott Wave Analysis




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