Weekly Roundup: Currency & Financial Markets News 4th of May

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The weeks after Easter were not very eventful. Especially this week, but there is still some major news connected to company expansions and various reports documenting the performance of different financial companies during the first quarter of 2019.

Fortunately, however, these weeks were finally free of Brexit related headlines, at least the ones that could have had major impacts on the markets.

ESMA pushes for permanent regulations

In the wake of several EU countries adopting permanent ESMA regulations and restrictions on CFD related products and marketing, the EU regulator has decided that it was time to push their agenda to the maximum. ESMA wants to introduce a permanent version if it restrictions on CFD trading and marketing activities as well as reinforce the ban on Binary options.

Several CFD and Forex brokerages such as UproFX have already voiced their opinion that they’re ready to comply with the regulations regardless of potential losses it may incur. Having companies on board with the implementation should make the regulation a smooth sailing.

Deutsche Boerse sharing its trading performance for 2019

The trading volume with Deutsche Boerse’s Xetra electronic order book has lowered by 8% compared April 2018. This year’s trading volume accounted for 107 billion Euros, compared to last year’s 117 billion Euros.

The average daily turnover also fell to nearly 5.5 billion Euros, compared to last years nearly 6 billion Euro daily turnover. Many experts speculate that this is the product of predicted economic growth for the EU region, which is believed to slow down in 2019.

Singapore will become the gatekeeper to ASEAN for Chinese companies

Thanks to the massive growth that Chinese companies have been seeing in their local markets, the government and various exchanges decided that it was time to foster good relations with their neighbours to form future plans for even further growth.

Thanks to a Memorandum of Understanding between, CCOIC (China Chamber of International Commerce), UOB (United Overseas Bank Limited) and the SGX (Singapore Exchange Limited), Singapore will now act as a “launchpad” for Chinese companies into the ASEAN (Association of South East Asian Nations) market.

Chinese companies will be able to utilize small subsidies and more welcoming environments in the country, in order to jump-start their expansion Southwards. Thanks to Singapore’s affiliation with International Commerce, this MoU can open even more “trade routes” for the Chinese companies. starts its operations from a new office in Frankfurt, Germany which is arguably one of the largest trading platforms has made the decision to reinforce its trading activities in the EU market, by integrating its operations in the German regulatory jurisdiction.

The reasons currently are disclosed as further affiliation with its European traders, but some critics are speculating that the company tried just tried to avoid the UK, due to Brexit issues. Which is not unheard of, as multiple large banks have already made that choice and went for Cities like Dublin, Amsterdam and Frankfurt.

EUR/USD went through terrible losses this week

Due to declining levels in the German retail market, the EUR/USD pair suffered immensely. Thanks to the unexpected fall in the PMI, below April’s 44.5, many conventional Forex traders had to watch their Monday morning calls just go down the drain as the pair lost approximately 110 pips within just 2 days.

Should a failure to break the 1.2000 marks occur, the further decline will be expected both by the traders and the banks, which will increase the fall even further.

Giorgi Mikhelidze

Giorgi has 3 years of experience in the Forex and cryptocurrency market. He is currently a financial analyst and partnership manager at a financial news website.

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