Another week another load of information to take in. The financial market has been very active this week judging from the major changes that have been made in the European political sphere. Let’s take a look at the most important developments of the 10-14 December week.
Major Currency Moves
- 1 Major Currency Moves
- 2 Major Legal Updates
- 3 Major Political Updates
EUR/USD Achieving Beefy Support
After last week’s massive decline, a small bullish outbreak was sited in the EUR/USD pair. Despite the high hopes of the investors, the sentiment quickly boiled down to a simmer and is on track of continuing its downfall even going further down than the 1.1300 mark. Many outcries were heard for a sell while it’s possible and maybe it’s time to listen?
GBP/USD Going Low
The whole Brexit discussion has been complete mayhem this week. Some say it’s on pause, some claim that it’s going to happen nonetheless. All of this contradiction of information makes currencies quite fragile and the GBP proved it to be the case. The GBP remained in a bearish zone this week and declined quite sharply from the 1.2760 swing high against the USD. The GBP/USD pair broke the 1.2620 and 1.2550 support levels plus it settled below the 50 hourly simple moving average.
Major Legal Updates
FCA Releases last quarter KPI
One of the major news concerning the FCA was their disclosure of their quarterly KPIs. The KPIs were in regard to the performance of the FCA’s Authorisations Division, including authorizations, variations of permission, passporting and of course the change in control. The major takeaway from the disclosure is the difference between this quarter’s passport in and outs and other quarters.
The FCA saw passporting in at 102, while the out was 652.
FCA Greenlights Long-Term Investments for Retailers
The intent behind the change was of course good. And the news was also very well received by the trading community. Essentially the change was to enable long-term asset investments through unit-linked funds. This was to be done alongside a firm protection level. Funds will now be able to choose investment opportunities to better match the consumer needs. Ultimately making it more beneficial for the community.
FCA makes CFD Restrictions Permanent
In the wake of a potential Brexit cancelation, FCA has been working with ESMA even more closely, because of a potential continuation of the partnership.
The intention of the FCA is quite clear as it discredits the way these products are handled by both the consumer and the provider. In order to completely avoid these problems, it saw that their values aligned with ESMA’s regarding CFDs, therefore a permanent ban will most likely be the case in the near future, Brexit or no Brexit.
CySEC joins Mediterranean Partnership of Securities Regulators
Thanks to the partnership it will become a lot easier for the Cyprus regulator to cooperate with Securities Regulators from countries like Tunisia, Turkey, Portugal, Spain, Algeria, Italy, Egypt, Morocco, and Greece.
Major Political Updates
European Commission aims to increase transparency in financial markets with new rules.
The new rules will be mandated by the Securities Financing Transactions Regulation (SFTR). The SFTR requires all securities financing transactions to be reported to a central database called the “trade repository”.
Brexit on hold! Theresa May challenged!
Theresa May’s authority was challenged this week when a confidence vote was made in the UK parliament. The anticipation was high with both political and financial enthusiasts as the decision was relatively dependant on the Tory MP’s. Should she have lost the confidence vote a terrible leadership challenge would ensue, further worsening the situation.
Despite the fact that she won, a third of the MP’s displayed their dissatisfaction of her leadership and have put the discussion of Brexit into complete jeopardy. So does this mean that Brexit is canceled? Will we be seeing a new referendum in the coming months?