Weekly Roundup: Currency & Financial Markets News 21st December

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Well, well well, another week that we have survived a market crash. Congratulations everybody! But before we start celebrating yet another stable week of finance. Let’s get a look at all of the major developments in the market. We all know that there are several aspects to it, so we’ll cover them all. Ready or not, here we go.

Major Currency Moves

EUR/USD Breakout

Because of the current political situation, the main currency pair, EUR/USD has been going through some tough times lately. And by tough times we mean terrible volatility. There was an expectation of some breakout, which would trigger a sell signal and lead to a further decline.

Although this week started off in the red as well, there has been quite a nice gain these last few days. Managing to go above the 1.31 mark.

AUD/USD Analysis

This week a large sell signal was expected to happen. Which wasn’t the case actually. At the start of December, we saw a massive fall below the 0.74 mark and it has been struggling to regain its ground ever since, but this week there has been a sighting of at least some green candlesticks on the charts. Judging from political developments, which are few and far between, no real major boosts should happen to the pair and it should continue stabilizing without a hindrance.

Major Legal Updates

Bank of Russia restarts Forex broker licensing

A lot of doubt was directed to Forex brokers located in Russia, as they were always struggling to get at least some kind of regulation from the financial institutions of the country, especially the central bank. However, one of the brokers, Alfa Forex, proved it not to be the case as it became the ninth regulated Financial service provider in the country. This could be a very welcome start to a more diversified financial sphere for the country, as it keeps on affiliating itself with the new ESMA regulations. Such as the 1:30 leverage cap.

ESMA continues CFD restrictions

There was already a 3 month trial on Forex and CFD leverage cap in the ESMA regulated sphere. As we already know the cap is 1:30. Looks like the regulator didn’t get enough insight on the whole situation, and therefore has decided to continue the process for another 3 months. The last 3-month trial ended in November 1st. The measure is believed to be applied, starting from February 1st.

ESMA wants UK firms to remind their clients about Brexit consequences

Brexit is such a hot topic of the last quarter of 2018. ESMA has been well at work in order to prepare for the coming change. Even though there are rumors that Brexit may not even happen, everybody still needs to be ready for the worst. The ones that need to be ready the most are UK firms and their customers. Therefore ESMA has been paying more attention to them in regards to warnings, urging these firms to remind their customers about the implications of Brexit.

Major Market News

MOEX greenlights global FX liquidity

The Moscow Exchange, aka MOEX, has announced the beginning of OTC transaction offerings in the EUR/USD currency pair. All of this was made based on the infrastructure it has for the FX market at the moment. Integral is going to be the source, which these firms will use as a means of access to the global liquidity providers. There are more and more pairs being added, with GBP/USD being the latest.

FCA may change the way banks charge you for overdrafts

Here are the changes that the FCA will bring in to prevent unlawful or unfair overdraft charges from banks.

  • No more fixed daily or monthly charges, only simple interest rate
  • Banks won’t be able to charge higher prices if the customers have an unarranged overdraft.
  • No more fixed fees for borrowing through overdraft
  • Regulation in advertisements for overdrafts, such as an APR to attain more transparency and comparison to other products.
  • Explanation of all the costs included in the refused payment fees.
  • Support customers with financial problems, if they’re using an overdraft, by reducing their overdraft use.

eToro to enter the Gibraltar Blockchain sphere

Gibraltar has been quite active in terms of handing out Blockchain licenses. After Huobi and Coinfloor the next firm to receive the license is eToroX, which is a crypto branch of the brokerage.

The licensing paves the way for the company to offer a lot more innovation in the cryptosphere and potentially diversify their products through a regulated and safe territory.

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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