FBS CopyTrade Launches A New Card Scanning Feature!

The FBS CopyTrade team has created a new feature for a more convenient app use! To make financial transactions like deposits or withdrawals, users can now scan their cards with their phone cameras.

No need to squint at all those symbols and put them in manually one-by-one. Now to complete a financial transaction, users can tap the card icon in the Card number field when filling in card information and let technology do all the dirty work. The app will fill in the card number, cardholder name, and the expiration date – the CVV2 code needs to be put in manually. The feature is available in the FBS CopyTrade app for both iPhone and Android users.

FBS CopyTrade app is the first of FBS products to introduce this feature. We will not stop here: our team is working relentlessly to make sure the investors have a great time using the FBS CopyTrade app. Our app has received awards as the most user-friendly social trading app – and we work hard to prove that we deserve these awards.

The FBS CopyTrade App is a dynamically developing platform for social trading. It is usually named the most user-friendly and easy-to-use copy trading application.

The app was launched in 2018. It is used by more than 5 million investors. FBS CopyTrade allows people who are less experienced in trading to increase their capitals by copying the selected skilled traders. The traders get an income from each copier’s deposit after a successful transaction. The support team of the app operates 24/7 with more than 15 languages.

FBS is an international broker with over 190 countries of presence and 11 years of expertise, providing knowledge via free seminars, special events, educational materials, and daily analytics.

FBS is an official trading partner of FC Barcelona from January 2020.

Trading Currencies: The Return of Janet Yellen

The return of the former Fed Chair Janet Yellen to the forefront of US policy; this time on the fiscal side it’s one that the FX market will probably meet with glee.

A solid communicator and an advocator for ‘strong’ policy accommodation, Janet Yellen’s upcoming appointment to Treasury Secretary will likely mean that Joe Biden’s fiscal stimulus package will be one of mammoth proportions – and a potential short-term negative for the USD.

To highlight this point, here are some extracts from her speech that she gave about her upcoming appointment.

“We lawmakers need to ‘act big’ on the next coronavirus relief package,” she complimented by adding that the benefits of the package will well and truly outweigh the costs of a higher debt burden.

“As Treasury chief my role will be to assist in the rebuilding of economy so that it creates more prosperity for more people and ensures that American workers can compete in an increasingly competitive global economy.”

“Right now, short term, I feel that we can afford what it takes to get the economy back on its feet, to get us through the pandemic.” As rates are historically low and that debt-servicing payments as a share of the economy are lower today than before the 2008 financial crisis.

These are big statements and the ones that support the trade we have seen throughout 2020. A tidal wave of USD is likely to hit the markets in the foreseeable future.

Future of the USD trend

Her comments also back what the Federal Reserve has stated – that it will back the economy with quantitative easing and record low rates until inflation averages 2% – something that is at least 2 years off. Having US fiscal and monetary policy aligned will create some form of inflation in the future that is the intended goal and that the rates will therefore rise.

Ms Yellen’s statement coupled with last week’s statements from Fed officials show that rates for the foreseeable future will remain incredibly low.

This was seen in the movement of US treasury with US 10-year yield falling from 1.12% to 1.09% on Yellen’s remarks and have continued to fall.

Time to go ‘risk-on’?

The flip side of this is the acceleration of the risk trade with textbook moves in CHF, JPY and USD easing while the like of EUR, GBP and AUD shifting higher.

EUR/USD is now back above $1.21 at $1.2145, the GBP/USD is back above $1.36 at $1.3630 while AUD/USD is now above $0.77.

Key Events to Watch in the Coming Week

  • Fed’s Monetary Policy Statement – January 28, 2021 (GMT +11)
  • USA’s Gross Domestic Product Annualized (Q4) – January 29, 2021 (GMT + 11)

This article is prepared by Lucia Han from Mitrade and is for reference only. We do not represent that the material provided here is accurate, current or complete. The article content neither takes into account your personal investment objects nor your financial situation, and therefore it should not be relied upon as such. You should seek for your own advice.

Bitcoin Sidetracks from $40,000. What Happens Now?

Bitcoin’s wild rally in 2020 was fueled by the Feds printing over $3 million to battle the COVID-19 crisis. The US dollar weakened with inflation, while BTC price soared. People discovered trading at home with brokers offering attractive no-commission services. All you need is a phone and an Internet connection to trade.

This year, the price trend continues with more money printing anticipated. US President-elect Joe Biden revealed last week his $1.9 trillion COVID-19 relief proposal, which could push Bitcoin prices further.

BTCUSD stalls at $34,437 after peaking at about $42,000 [1D], SimpleFX WebTrader

Surprisingly though, Biden’s announcement made a very weak bullish response from the Bitcoin market so far. As of writing, BTCUSD continues to trade sideways at $34,437, which is down by 20% from the new high but still up by 17% this year to date.

As people used their checks to invest in cryptocurrencies, big-time investors and Hollywood stars investing in Bitcoins strengthened the hype even more. Even billionaire Paul Tudor considers Bitcoin as the top hedge against inflation.

JP Morgan analysts have equated Bitcoin as the “digital gold” and said that it could hit $146,000 eventually. However, in the near term, if Bitcoin can’t reclaim the $40,000 level, an “investor exodus” could happen. Those who want to take profits are likely to cash out and fuel the recent correction, weakening Bitcoin’s momentum cues until the end of March.

BTCUSD performance since January 2020 [1D], SimpleFX WebTrader

The macroview and the on-chain analysis for Bitcoin give a “wildly bullish” impression to analysts like Jeff Ross from Vailshire. BTCUSD is also far above the 50-, 100-, and 200-day SMAs, showing a favorable tone. According to Bitcoin bull PlanB, the strong performance and new trading volumes could spark a run to the $48K level.

Want to trade Bitcoin? Profit from both rising and falling Bitcoin prices using SimpleFX. It’s the easiest and most versatile app to trade cryptocurrencies along with popular stocks, forex, precious metals and more!

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STICPAY Introduces Cashback Program at Forex Brokers

STICPAY, a London-based fintech company and e-wallet provider, introduces a new cashback program in collaboration with the firm’s merchant partners.

With a growing number of broker partners participating in the program, the cashback gets credited directly into the customers’ STICPAY accounts in weekly or monthly settlements.

The rewards STICPAY customers can earn at each broker varies by their account type and trading activity as well as the service provider’s terms.

For these reasons, the firm created a simple calculator app so clients can see how much cashback they can earn at each service. Customers can also use the following table to check their broker’s rates as well as the requirements to participate.

How to Earn Cashback

For traders, it’s easy to participate in STICPAY’s cashback program.

As the first step, users have to log into their STICPAY accounts and head to the cashback program’s official website.

Once ready, customers can choose their broker and use a link provided by STICPAY for the signup.

Upon successful signup, the cashback customers earned at brokers will automatically get credited into their STICPAY accounts in either weekly or monthly settlements (based on each service provider’s terms).

STICPAY credits the cashback at 6:00 GMT every Monday for weekly and 6:00 GMT every first Monday of the month for monthly settlements.

Customers can withdraw the cashback they earned throughout the program anytime using one of the payment methods offered by STICPAY. Alternatively, they can hold, convert, or spend their balance at the company’s verified merchant partners.

About STICPAY

Founded in 2018, STICPAY is a London-based fintech company that serves customers in over 190 countries with a global e-wallet service. With a Year-Over-Year (YoY) growth of 300%, STICPAY has a strong presence in Asia. Due to the firm’s partnerships with domestic financial institutions, STICPAY offers the option for customers in seven Asian countries to top-up and withdraw funds rapidly and cost-efficiently using the local bank wire service.

While featuring advanced security and anti-fraud measures, the company recently redesigned its mobile apps for iOS and Android, allowing customers to enjoy the full STICPAY experience at the convenience of their smartphones. Along with eCommerce, the company considers the forex industry as one of its top markets for merchants.

‘Acting Big’ On Stimulus

“Today’s appearance of Janet Yellen as the nominee for the top finance job in President-elect Biden’s administration is grabbing all the headlines today.”

She will make the case for large-scale stimulus to cushion the blow from the global pandemic. Her strong support for Biden’s $1.9 trillion relief package is predicated on the fact that interest rates are at historic lows and the best thing to do is ‘act big’ with the borrowing benefits far outweighing the costs.

After the US holiday yesterday, markets have taken a liking to Yellen’s with risk sentiment on the rise once more. Bond yields are on the up and US stocks have found support at the 20-day SMA and are trying to regain lost ground from last week. Oil too is marching higher with similar price action while gold is flat on the day.

Dollar selling resumes

King Dollar of course, does not like risky markets and the bears are back trying to push the world’s reserve currency below 90.

Along with stating that bigger fiscal support will help reduce the dangers of a more painful recession and long-term economic scarring, Yellen is set to say that the US will not seek competitive devaluation and will allow markets to determine the value of the USD. Does this mean she supports the traditional ‘strong Dollar’ policy? The former Fed Chair knows the ropes when it comes to the importance of her remarks and their effects on markets.

This most likely means she will avoid being pinned down and use a more consistent voice as her strategy, in contrast to the previous administration. She is certainly a wise old owl!

A possible bullish signal and short-term base (inverse head and shoulders) looked to have been developing on the DXY but today’s selling may negate that if prices get near 90.

The target for the reversal pattern is above 92 over the next couple of weeks if bulls manage to push higher.

EUR halts the downtrend

The single currency is the strongest major on the week with support around the 9 December low managing to dampen bearish sentiment. A German business survey showed an improvement in investor expectations while there is some focus on the Italian confidence vote in the Senate. Market reaction is likely to be muted as the PM is expected to win by a small margin.

EUR/USD is aiming for a close above 1.2150 to bolster the rebound and reverse the downtrend from the last ten days. Any fall below 1.2053 would see traders gunning for 1.20.

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Pepperstone Expands Its global Operations With Five New Licenses Around The World.

Find out more about Pepperstone’s range of instruments and markets available to traders at https://pepperstone.com/en-af or https://pepperstone.com/en-ae/

Pepperstone was first established in 2010 in Australia, where it received multiple awards from the notable Investment Trends for customer service, spreads and support. In 2019, Pepperstone was rated number one for overall client satisfaction and platform features.

As one of the largest MetaTrader brokers in the world, Pepperstone’s vision is a world of digitally-enabled trading for traders to embrace the challenge and opportunity of global markets. The financial technology company has more than doubled in size over the past 12 months in line with its growth targets, expanding and tailoring its product offering into hundreds of new markets including Germany, Cyprus, The Bahamas, Dubai and Kenya

“Nairobi and Dubai are exciting financial hubs and we look forward to continuing to strengthen our product offering, delivering exceptional pricing and building on our already strong relationships with our Middle East and African traders and partners” – said Tamas Szabo, Group CEO of Pepperstone

The broker’s commitment to compliance and regulation sees it licensed in ASIC, FCA, DFSA, SCB, CySec, BaFin and CMA, a total of seven licenses in multiple jurisdictions.

About Pepperstone

Established in 2010, Pepperstone is now one of the largest MT4 brokers in the world. The company has subsidiaries across the globe and holds licenses issued by the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Dubai Financial Services Authority (DFSA), the Capital Markets Authority of Kenya (CMA), and the Securities Commission of The Bahamas (SCB).

Earnings Preview: Bank Of America & Goldman Sachs In Focus

Since the start of 2021, shares from boths banks have performed well with BofA up almost 9% while GS gaining over 14%. However, this does not necessarily mean that Q4 earnings may smash expectations.

As highlighted in our JPMorgan preview last week, banking stocks continue to derive strength from progress on the vaccine front and renewed hopes over global economic growth.

Bank of America – major challenges

Investors will be closely watching how well Bank of America handles two major challenges when it publishes its Q4 2020 earnings. It is widely known that the negative impacts of COVID-19 and low-interest rates environment punished many major banks including BofA.

“The multinational investment bank has seen revenues fall for fourth consecutive quarters with markets expecting a similar story in Q4.”

According to Bloomberg, the consensus earnings per share estimates stand around 55c per share on $20.51 billion in revenues. For a full year, earnings are projected to decline by 36.6% to $1.79, while full-year revenues are forecast to hit $86.28 billion – marking a 5.7% decline from 2019.

What to watch out for….

It’s all about the loan loss provisions and trading revenues.

The loan loss provisions may be defined as the portion of loan repayments set aside by banks to cover the portions of the loss on defaulted loan repayments.

“Investors are likely to keep an eye out for whether BofA was forced to top its loan loss provision in Q4 in the face of COVID-19. If this is indeed the case, sentiment towards the bank is likely to take a hit.”

In regards to trading revenues, the explosive levels of volatility in 2020 dished out extraordinary opportunities for banks to boost revenue. The jump in trading profits slightly soothed the negative impacts of low-interest rates. Given how volatility remains the name of the game and equity markets are flirting near record highs, BofA may report impressive trading revenue. According to Bloomberg Consensus, trading revenue is expected to hit $3.14 billion in Q4.

BofA bulls still in the building

Share prices remain bullish on the daily charts as there have been consistently higher highs and higher lows. The solid weekly close above $31.50 may invite an incline towards $35.50 and possibly higher. Lagging indicators in the form of the MACD and 20 Simple Moving Average points to higher prices. Should shares sink below $29.50, this technical bullish setup becomes invalidated.

Will Goldman Sachs surprise markets?

Investors will also be closely scrutinizing Goldman’s earnings report for insight and clarity into the banks’ outlook for 2021. Adjusted earning per share estimates stand around $7.31 with net revenues seen hitting $9.94 billion. Interestingly, full-year earnings per share are forecast to dip 13% to $20.56 while revenues for the whole of 2020 are projected to rise 17% to hit $42.746 billion.

Buying sentiment towards Goldman Sach shares may receive a boost should earnings meet or exceed expectations.

“Given how the bank’s stock is flirting near record highs, positive earnings could provide bulls the green light to elevate prices to fresh records beyond $309.40.”

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

How Might Netflix’s Q4 Earnings Affect its Share Price?

While we await the confirmation of such numbers from Netflix, which is set to announce its Q4 results after US markets close on Tuesday, a lot of tailwinds for this pandemic darling has already been baked into its share prices.

NFLX Daily

How have Netflix’s share prices performed so far in 2021?

In fact, its stock prices have dropped by nearly 8 percent so far this year, and is still keeping to the same range since July. With its 50-day and 100-day simple moving averages (SMA) now flat, Netflix’s shares are clearly in need of a new major catalyst to break out of its sideways trend.

Though to be fair to the bulls, Netflix’s shares had a remarkable year in 2020, registering an annual advance of 67.1 percent.

Are the best days over for Netflix’s growth?

The forward-looking nature of the markets mean that Netflix shareholders have already trained their sights on this year’s prospects and beyond. Some market estimates see Netflix boasting 300 million subscribers by 2024, but will have to first overcome near-term challenges.

Netflix is likely to post subdued year-on-year comparisons in 2021, given that the pandemic had front-loaded much of the company’s growth in the first half of 2020. It’s difficult to imagine Netflix repeating or beating such a feat during this current quarter and next.

For example, the streaming giant added 15.8 million subscribers in Q1 2020. According to the Bloomberg consensus estimates, Netflix is expected to add “only” 7.3 million more subscribers in the current quarter, which would be less than half of the total added in the first three months of 2020.

More price hikes to come?

Besides being tested on its ability to lure even more subscribers, Netflix will also be tested on its ability to retain existing customers. The streaming giant began a new price hike cycle in September, with the US seeing an 8-13% price hike in Q4, while prices in the UK and Ireland were raised in December. Subscribers in Germany had to start paying more last week. More price hikes are expected in other markets soon.

As long as Netflix can limit the subscriber churn amid these price hikes, that should bode well for its top line, with revenue set to come in at $6.6 billion in Q4 2020, which would mark an increase of over 20 percent compared to the same period in 2019.

Still, such prices hikes should raise the ARPU (average revenue per user) – which means Netflix is becoming more efficient in generating more income per subscriber – even as the top line revenue sees slowing year-on-year growth for a 5th consecutive quarter.

What are Netflix’s plans for this year?

Amid the price hikes, Netflix has ambitious plans to keep its ever-demanding customers satiated.

The streaming giant is set to release 70 original films in 2021 (that’s more than one new title for every week), and that doesn’t include documentaries.

It remains to be seen how much this lineup of new titles can add to Netflix’s subscribers tally, given the tempting offerings by the likes of Disney+, HBO Max, Peacock and the like, all of whom are vying for a larger share of the streaming pie.

How do Netflix shares tend to react after earnings day?

Markets are already pricing in a 6.8 percent one-day move when Netflix shares resume trading after its earnings release. Also note that shareholders have seized the opportunity to book profits after the last four consecutive earnings announcements, while single-day declines have been registered in 8 out of the past 12 earnings announcements.

Netflix bulls are going to need an outsized positive surprise on Tuesday or a very bullish outlook from the company’s top brass that markets can buy into. Such rhetoric may put Netflix shares on a path towards breaking past the upper limits of its 7-month long-range and potentially set a new record high.

Written on 19/01/2021 08:30 GMT by Han Tan, Market Analyst at FXTM

For more information, please visit: FXTM


Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How Might Netflix’s Q4 Earnings Affect Its Share Price?

While we await the confirmation of such numbers from Netflix, which is set to announce its Q4 results after US markets close on Tuesday …

“Note that a lot of the tailwinds for this pandemic darling has already been baked into its share prices.”

How have Netflix’s share prices performed so far in 2021?

In fact, its stock prices have dropped by 7.9 percent so far this year, and is still keeping to the same range since July. Though to be fair to the bulls, Netflix’s shares had a remarkable year in 2020, registering an annual advance of 67.1 percent.

“Still, with its 50-day and 100-day simple moving averages (SMA) now flat, Netflix’s shares are clearly in need of a new major catalyst to break out of its sideways trend.”

Are the best days over for Netflix’s growth?

The forward-looking nature of the markets mean that Netflix shareholders have already trained their sights on this year’s prospects and beyond.

“Some market estimates see Netflix boasting 300 million subscribers by 2024, but will have to first overcome near-term challenges.”

Netflix is likely to post subdued year-on-year comparisons in 2021, given that the pandemic had front-loaded much of the company’s growth in the first half of 2020. It’s difficult to imagine Netflix repeating or beating such a feat during this current quarter and next.

For example, the streaming giant added 15.8 million subscribers in Q1 2020. According to the Bloomberg consensus estimates, Netflix is expected to add “only” 7 million more subscribers in the current quarter, which would be less than half of the total added in the first three months of 2020.

What are Netflix’s plans for this year?

Amid plans to grow its global subscribers base, Netflix also has to keep its ever-demanding customers satiated. With such a goal in mind, the streaming giant is set to release 70 original films in 2021 (that’s more than one new title for every week), and that doesn’t include documentaries.

It remains to be seen how much this lineup of new titles can add to Netflix’s subscribers tally, given the tempting offerings by the likes of Disney+, HBO Max, Peacock and the like, all of whom are vying for a larger share of the streaming pie.

Earnings day volatility

Markets are already pricing in a 6.8 percent one-day move when Netflix shares resume trading after its earnings release.

“Also note that shareholders have seized the opportunity to book profits after the last four consecutive earnings announcements, while single-day declines have been registered after 8 out of the past 12 earnings announcements.”

Netflix bulls are going to need an outsized positive surprise on Tuesday, or a very bullish outlook from the company’s top brass that markets can buy into. Such rhetoric may put Netflix shares on a path towards breaking past the upper limits of its 7-month long range and potentially set a new record high.

Open your FXTM account today


Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

U.S. Dollar Index: Another Dead Cat Bounce?

“The former king of the currency markets is on a mission to reclaim the throne, appreciating against every single G10, most Asian and Emerging market currencies since the start of 2021.”

What is boosting the US Dollar?

A key theme stimulating appetite for the Dollar could be higher treasury yields.

It must be kept in mind that high yield bonds tend to attract foreign investors, which sell their local currency to buy the U.S Dollar in order to purchase the bonds. This results in the U.S Dollar appreciating against those currencies.

Bulls seem to also be deriving strength from the improving economic outlook. The prospects of more fiscal stimulus and vaccine rollouts continue to brighten the outlook for the largest economy in the world. Why wouldn’t you want to hold the currency of a country that could recover rapidly in 2021?

What could spoil the party?

“The great ‘reflation trade’ will most likely remain a thorn in the side of bulls.”

Reflation is a fiscal or monetary policy designed to expand economic output, stimulate spending, and curb the effects of deflation. Given how inflationary pressures may rise amid the jump in consumption, this may weaken the purchasing power of the Dollar. Another thing to keep in mind is that the Federal Reserve is keen to maintain its ultra-accommodative monetary stance into the foreseeable future. The combination of lower interest rates and rising inflationary pressures may throw a proverbial wrench in the works for bulls.

Enough of the fundamentals, let’s talk technicals

The basis of technical analysis is formed by Dow theory.

  •  Prices are a comprehensive reflection of all market forces.
  • Prices are repetitive, history will repeat itself.
  •  Prices trend.

Taking a look at the Dollar Index on the weekly timeframe, we can see that prices are trending lower while history has repeated itself on numerous occasions with various pivotal levels.

The question that comes to mind is whether the current rebound is nothing more than a dead cat bounce. As the chart above illustrates, this is not the first time the Dollar has risen from the ashes like a phoenix…only to be smashed back down into the dirt.

If this rebound is the real deal, bulls will need a secure a solid weekly close above 92.00 which may signal the end of the downtrend. Above 92.00, the next key level of interest may be found at 95.00.

Things are looking spicy on the daily…

An inverse head and shoulders candlestick pattern can be identified on the daily charts.

The daily close above 90.50 could signal another leg up for the Dollar Index with 92.00 acting as the first and possible final destination for bulls before bears re-enter the scene.

Should 90.50 prove to be unreliable support, the Dollar Index may resume its descent into the abyss with 89.00 and 88.30 acting as the first of many bearish checkpoints.

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

FXTM Forex Trading Strategies Part 1 – Webinar Jan 19

The purpose of this webinar series is to explore the Forex Trading Strategies guide located on the FXTM website. In the first installment of this three-part series, both trading strategies and types of trades will be discussed and demonstrated on live charts. This presentation will help participants to gain confidence in their own trading skills. Don’t miss out on the chance to learn from one of our experts from the comfort of your own home! All the material presented has been approved by the Company’s Key Individual, in accordance to FSCA guidelines.

REGISTER FOR FREE

  • Log in or register
  • Click ‘Join Now’ on your chosen Webinar
  • Check your inbox for the webinar link

FXTM Trading Educator Theunis Kruger has always been fascinated by economics, with a particular interest in ‘wave’ formations and how they can be used to forecast and analyse trends in the financial markets. With a decade of solid trading experience to his name, Theunis now enjoys sharing his knowledge with others.

FXTM Forex Trading Strategies Part 2 – Webinar Jan 20

The purpose of this webinar series is to explore the Forex Trading Strategies guide located on the FXTM website. In the second installment of this three-part series, the Blade Runner Trade, the Daily Fibonacci Pivot Trade, the Bolly Band Bounce Trade and more will be discussed and demonstrated on live charts. This presentation will help participants to gain confidence in their own trading skills. Don’t miss out on the chance to learn from one of our experts from the comfort of your own home! All the material presented has been approved by the Company’s Key Individual, in accordance to FSCA guidelines.
  • Log in or register
  • Click ‘Join Now’ on your chosen Webinar
  • Check your inbox for the webinar link
FXTM Trading Educator Theunis Kruger has always been fascinated by economics, with a particular interest in ‘wave’ formations and how they can be used to forecast and analyse trends in the financial markets. With a decade of solid trading experience to his name, Theunis now enjoys sharing his knowledge with others.

FXTM Forex Trading Strategies Part 3 – Webinar Jan 26

The purpose of this webinar series is to explore the Forex Trading Strategies guide located on the FXTM website. In the third installment of this three-part series, the London Hammer Trade, the Forex Fractal Trade, the Forex Dual Stochastics Trade and more will be discussed and demonstrated on live charts. This presentation will help participants to gain confidence in their own trading skills. Don’t miss out on the chance to learn from one of our experts from the comfort of your own home! All the material presented has been approved by the Company’s Key Individual, in accordance to FSCA guidelines.

REGISTER FOR FREE

  • Log in or register
  • Click ‘Join Now’ on your chosen Webinar
  • Check your inbox for the webinar link

FXTM Trading Educator Theunis Kruger has always been fascinated by economics, with a particular interest in ‘wave’ formations and how they can be used to forecast and analyse trends in the financial markets. With a decade of solid trading experience to his name, Theunis now enjoys sharing his knowledge with others.

Will Inflation Return?

Chief Market Analyst of XTB group discusses key topics and potential market scenarios.

Watch this video to learn:

  • Inflation outlook for 2021
  • What higher inflation would mean for markets
  • Market situation on Gold, DE30, EURUSD
  • Key events for the week ahead

Top news this week include:

  • Biden’s inauguration (Wednesday)
  • US housing starts (Thursday)
  • Flash PMIs (Friday)

For a look at all of today’s economic events, check out our economic calendar.

A Cautious Start To A Busy Week

Asian stocks traded mixed today despite data showing that China’s economy bounced back strongly in the final quarter of 2020. The world’s second-largest economy reported 6.5% growth in Q4, well above estimates of 6.1%. Industrial production also beat expectations in December rising 7.3%, but retail sales could not catch up with the trend, growing only 4.6% versus analysts’ forecast of 5.5%.

Overall, China is the only major economy to achieve a rapid turnaround and this is essentially due to the measures taken to control the pandemic. Whether the country will continue to achieve rapid growth in the following quarters, depends largely on the changing pandemic dynamics both internally and overseas.

US equity futures are dipping lower following two consecutive days of declines. Data on Friday showing retail sales declining 0.7% in December was a warning signal to equity bulls, given consumer spending in the US makes up about two-thirds of the country’s economic output.

The $1.9 trillion anticipated fiscal stimulus from Biden’s administration was the key support to risk assets and allowed Wall Street to remain disconnected from Main Street. However, the new President’s pledge on wealthy individuals and corporations to pay their “fair share” in the form of taxes was unsettling. Markets knew that Biden wanted to raise taxes sometime in the future but taking such a step in the current environment will likely trigger a significant selloff if approved by the Senate.

US markets are closed today due to Martin Luther King holiday, hence we are not seeing big moves in FX. Expect volatility to ramp up heading into Biden’s inauguration on Wednesday, especially if riots turn violent.

Elsewhere investors will keep a close eye on earnings from Morgan Stanley and Bank of America after bank shares took a hit on Friday. Intel, Netflix and Procter & Gamble are also on the earnings calendar this week.

Investors will learn on Thursday how the European Central Bank responds to extended lockdowns on the continent. While we do not expect to see any changes to interest rates, the bond purchasing program may be expanded further. Any increase in asset purchases or verbal intervention associated with the Euro’s strength may put additional pressure on the single currency.

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Key Events This Week: Risk Sentiment Needs A Catalyst

“This is a remarkable achievement for the world’s second largest economy, considering that other major economies are still battling with extended lockdowns and are facing the threat of a double-dip recession.”

Following such a headline, only benchmark indices in China and Hong Kong are climbing, while the rest of Asia is in the red. The Hang Seng index is making further strides in breaking out of its multi-year downtrend, though it remains some 13.65 percent away from its record high set in January 2018 and needs to post a higher high above 29,122 to confirm the breakout on the weekly chart.

Here are other key events for the global markets this week:

  • Monday, 18 January: US markets closed
  • Tuesday, 19 January: Netflix Q4 earnings (after US markets close)
  • Wednesday, 20 January: Joe Biden presidential inauguration
  • Thursday, 21 January: ECB rate decision
  • Friday, 22 January: US, Euro-area, UK Markit PMIs

Tuesday, 19 January

Netflix is set to announce its Q4 earnings after US markets close on Tuesday, with the pandemic darling’s stock prices needing a boost. Stock prices have dropped by nearly 8 percent so far in 2021, and is still keeping to the same range since July, with its 50-day and 100-day simple moving averages (SMA) now flat.

Still, the streaming giant has ambitious plans: it’s set to release 70 original films in 2021, and that doesn’t include documentaries.

“It remains to be seen how much this lineup of new titles can add to Netflix’s subscribers tally, which is expected to have crossed the psychologically-important 200-million mark during the final three months of 2020.”

Wednesday, 20 January

As the world hopes for a peaceful transition during Joe Biden’s presidential inauguration on Wednesday, equity bulls may have to bide their time before pushing benchmark indices higher.

“Investors have been rather sanguine in their initial assessment of Biden’s fiscal stimulus plans, and are wary about the new regulations that a Democratic president may herald for markets and businesses.”

Since Biden announced his US$1.9 trillion proposal this past Thursday, all three major US equity benchmarks posted losses before the long weekend. US stocks had appeared exhausted last week and are in need of fresh catalysts, with the futures contract kicking off the week with a risk-off tone at the time of writing.

Thursday, 21 January

The European Central Bank is unlikely to make any major changes to its policy settings on Thursday, keeping its benchmark interest rate at minus 0.5 percent. However, the ECB is expected to reiterate its commitment to supporting the EU economy, even as it battles renewed and extended lockdown measures which are set to result in a GDP contraction for the current quarter.

“The Euro’s fortunes have very much been dictated by the US Dollar of late, with most G10 currencies posting year-to-date declines against the Greenback”

The Euro, which accounts for 57.6 percent of the Dollar index (DXY), may have little leg to stand on for the time being, and may have to wait for US yields to subside before enjoying some reprieve against the Dollar’s 2021 rebound.

Friday, 22 January

Major economies are due to have their respective purchasing manager’s indices (PMI) released by Markit on Friday.

“Should the manufacturing sectors in these countries prove resilient, that could help Oil prices climb on hopes that the global economic recovery has not been severely derailed by Covid-19’s resurgence.”

EIA crude inventories data will also be released on Friday, and Oil bulls will also want to see another major drawdown in US crude inventories, which have already fallen to their lowest since March.

Brent futures posted their first weekly decline of the year last week, and are continuing to trim their year-to-date gains on Monday. Still, the recent pullback may be deemed as healthy, given that Brent oil has spent most of 2021 so far in “overbought” territory.

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Lukman’s Week Ahead: Market Themes To Watch Out For – Webinar Jan 18

From the basics of learning how to trade, to in-depth analyses of complex strategies, we’ve got a webinar to suit traders of all learning styles and experience levels.

Join one of our free webinars today:

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FXTM Senior Research Analyst Lukman Otunuga holds a BSc degree in Economics from the University of Essex and an MSc in Finance from London School of Business and Finance. A keen follower of macroeconomic events with a strong professional background in finance, Lukman is well versed in the markets. Read his full profile here.

Week In Review: Trump Impeached Again, $1.9T Stimulus & Gold

Despite only being the second full trading week of 2021, there was plenty on the plate that kept market players on their toes. Fed officials were under the spotlight at the start of the week, especially after Atlanta Fed President Raphael Bostic stated that US interest rates could be hiked by mid-2022 or early 2023.

Focus shifted towards the Dollar as rising US government yields injected DXY bulls with enough inspiration to punch above 90.50.

“Although the Dollar is experiencing a technical rebound, the upside may be capped by the ‘reflation trade’ and the Fed’s ultra-accommodative monetary stance.”

Our technical outlook focused on Gold, which displayed cracks under the Dollar’s rebound. After struggling to shake off the nasty hangover from last Friday’s selloff, the metal found itself under the mercy of an appreciating Dollar. Overall, it was a choppy trading week for Gold as prices struggled to break away from the sticky $1850 level.

“Could the precious metal be waiting for a fresh fundamental catalyst?”

Fears around growing political risk gripped sentiment on Tuesday after Democrats introduced a resolution to impeach U.S President Donald Trump for a second time. Trump was later impeached by the House on Wednesday, marking a first in history as no president has ever been impeached twice.

In the United Kingdom, Governor Bailey downplayed talk of negative interest rates as he believed ‘there are still lots of issues’ with cutting rates below zero. Buying sentiment towards Sterling improved following the statement with the GBPUSD pushing against the stubborn 1.3700 resistance level. A weekly close above this level may open the doors to further upside in the week ahead.

In our earnings preview, we covered JPMorgan and possibility of delivering positive results on trading revenues. On Friday afternoon, the bank posted much stronger-than-expected fourth-quarter earnings as investment banking profits surged. Earnings per share smashed expectations by rising $3.79, exceeding the $2.62 per share forecast while revenues hit 30.16 billion exceeding the $28.65 billion estimate.

Despite the earnings beat, JPMorgan shares retreated from near all-time highs. Although prices are trading around $138.22 as of speaking, the bank’s shares are still up almost 9% year-to-date.

As the week slowly came to an end, the mood across markets was mixed as investors waited for US President-elect Joe Biden to reveal his plans for a COVID-19 relief package. It was no surprise that markets offered a muted reaction to his $1.9 trillion fiscal stimulus plan given how a lot of the optimism surrounding another injection of fiscal stimulus was priced in.

“The week ahead promises to be filled with fresh volatility and market action as investors grapple with the growing list of themes influencing global markets.”

Expect global equity bulls to find support from the ‘reflation trade’ while fears around surging coronavirus cases and lockdown restrictions may spur appetite for safe-haven assets. In the currency markets, it will be interesting to see whether the Dollar will appreciate further and if Gold is able to find a fresh catalyst to breakout or down.

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Muted Reaction To $1.9T Stimulus

There appears to be a some “sell-the-news” price action in equities, given that a lot of the optimism surrounding another injection of US fiscal stimulus had already been priced in ahead of the keenly-awaited announcement.

Markets are also understandably apprehensive following Biden’s foreboding remarks in addressing his proposal’s costs. A seemingly exhausted stock market reacted to the threat of higher taxes, and the intended hike in the minimum wage, by taking some risk off the table and booking in some profits.

Promise of more fiscal stimulus may come with caveats

There’s already chatter that the incoming Biden administration may not stop at just US$1.9 trillion and could roll out more fiscal stimulus. Such expectations have in recent past buoyed risk assets.

However, if the incoming fiscal support is accompanied by more risk-sentiment dampeners, such as the threat of heightened regulations, that may not have the intended booster effect on equities.

Pandemic woes still evident

Investors will have plenty to digest over the long holiday weekend for US markets. Besides the promise of more fiscal stimulus, market participants have to reconcile the still-heady heights in stock markets with the sobering realities amid the pandemic. Covid-19 cases are still raging throughout the US and Europe, and the vaccine’s rollout needing time to have its intended effect on the real economy.

In the meantime, the economy’s dire need for more support couldn’t be starker. Thursday’s weekly initial jobless claims rose back towards the one million mark to post its highest figure since August. More signs of economic angst may also be unveiled later today. Retail sales may show zero growth in December, while consumer confidence is expected to have dipped this month.

Gold climbs as Powell hushes tapering talk

Spot Gold got a slight lift as US 10-year yields dipped to the 1.11 percent level, after Fed Chair Jerome Powell poured cold water on talks surrounding a potential pullback in the central bank’s bond-buying programme. Although the 10-year yields remain significantly lower than pre-pandemic levels, they have stayed stubbornly above the psychologically-important one percent mark since last week.

The recent steepening of the yield curve indicates that markets are still optimistic about the US economic outlook and the inflation outlook. And with the Fed Chair pledging to provide ample warning time before any such tapering, so as to avoid a repeat of the infamous ‘taper tantrum’ of 2013, Gold bulls can take heart from the continued central bank support that should limit the precious metal’s downside for a while more.

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Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

LegacyFX Partners With Sum And Substance Ltd.

Founded in 2015, SumSub works with thousands of document types from hundreds of countries, in a multitude of languages, to ensure proper checks and verification.

The company understands the importance of mitigating and managing risk, both for itself as a financial provider as well as to better understand our clientele. Doing so allows us to properly identify our customers, minimize potential fraud, eliminate criminal or money laundering activities, and overall understand our customer’s personal and financial dealings. As such, we have chosen to significantly improve customer data protection and security as well as streamline our process of KYC collection, through SumSub’s automated services.

SumSub provides a comprehensive platform specifically built on a risk-based approach and compliant with various regulatory bodies such as, FATF, FINMA, FCA, CySEC, and MAS. Notable clientele of theirs include MasterCard, Flippa, Exness, Danapay, YouDo, the National Bank of the Republic of Belarus, Dabrabyt Bank, National Bank of Ukraine, and Pravex Bank. Overall, their toolkit enables customer onboarding, KYC verification, AML procedures, and proper data handling measures, all in a user friendly design. They do this by determining the authenticity of an identifying document, comparing the photo in the document to the user’s selfie, checking the user’s age and nation of origin, automatically flag forged documentation, correctly identifies liveliness of real human faces versus holograms, and checks photos and documentation against their internal database of fraudulent materials.

Violeta Koleva, Risk & Fraud Officer :

“Our goal was to make our KYC process easier and faster not only for our customers, but also for our Compliance Department as well. With SumSub, we will now have fast and transparent checks that allow us to identify fraud, fake documents, and money laundering activities, all in a people-friendly interface that is customized to our specific needs to not only improve our workflow but also upholds our security standards.” 

The company aims to use SumSub’s identifying documents verification, AML screening (PEP, Sanctions, Adverse media checks), payment fraud prevention, and liveness/face matching services. Their payment method fraud prevention and verification tool assures that a credit card belongs to the user by identifying potentially stolen bank cards before a transaction is even made. This is achieved by a user uploading a photo or screenshot of their payment method right before the transaction, with SumSub verifying it instantly, while complying with PCI and DSS regulations of blurring the cards information automatically.