Forex Broker FXCM Attacked by Hackers

An online foreign exchange broker FXCM Inc, told the press about being hacked. It said that its system had experienced severe hacking and a “small number” of unauthorized wire transfers of accounts were made resulting to almost 75 percent of shares lost from the company.

Last Thursday, the company said that all lost accounts were returned. According to FXCM, it received an email from a disclosed hacker claiming to have illegal access to customer information. Moreover, it said to have notified the Federal Bureau of Investigation (FBI).

A spokesperson of FBI said the bureau was “aware of the incident and is investigating.”

According to FXCM, they are working with a cybersecurity firm and the investigation is on the process. The investigation primarily aims to determine the extent of the damage of the said hacking incident, to identify the affected customers and possibly recuperate losses. However, the company did not disclose further details about the hacking incident including the date of the attack. FXCM did not even give an immediate response to request for comment.

According to reports, FXCM is the latest victim of a cybersecurity attack. Before FXCM attack were incidents of hacking on Target Corp, Apple Inc, and JPMorgan Chase & Co.

China has been accused of initiating such hacking thus making a big threat against the national security of United States. U.S. President Barack Obama and Chinesecounterpart Xi Jinping signed an agreement last week to fight cyber warfare.

Cyber-attacks are making great threats around Canada and in the entire of United States. Many companies have been taking the issue seriously and they are taking advanced measures to counter hacking activities by malicious entities.

EUR/USD Company, USD/JPY Shrink Before Upside Shift to 140

Senior FX Analyst of Plutus FX Steven Woodcock suggests the GBP/USD, USD/JPY and EUR/GBP outlook

GBP/USD – no apparent direction of price

According to Woodcock, he sees no clear direction of price in the USD/GBP, however keeps a hitch bias on the cross. Furthermore, he explains the reaction of the cross to moves in GBP/EUR, and anticipates a break from its 1.56 – 1.55 range, to fix on the next leg for the pair.

CAD/GBP, JPY/GBP: Ambushed

As seen by Woodcock, the GBP crosses rapped on the upper-end of their rallies. Moreover, he expects JPY/GPB to move higher after he saw several pullbacks.

GBP/EUR seeing a small bid

Long-term prediction over GBP/EUR is to continue downtrend, however several near-term offers may be seen in the cross while EUR deals firm. According to Woodcock, the cross has notices a jump as it held the support area about 0.6940. Many cross play is perceived because of the EUR, and GBP/EUR may be in for some benefits. A shift towards 0.7650 may be on the cards as well. Currently, the pair continues to be in a consolidative phase.

JPY/USD: Purchase any pullbacks

With JPY/USD, Woodcock sees a turnover and a probable pullback towards 122-122.50 area and even a level of 118. JPY/USD bulls require a shift beyond 124.50, with sellers only beyond the 124.00 level. Basically, Yen will still be weak, thus Woodcock seems to purchase any pullbacks on the cross. 140 stands will be the long-term target for the cross.

In the recent Forex Forecast, Woodcock continues to offer his viewpoint on USD/GBP, and shares more of his strategy to trade the flat details in the charts.

Markets waiting for additional guidance

Woodcock notes that there’s no actual guidance provided yesterday from Yellen and markets are waiting for some tangible guidance. He comments on trading how the past Fibonacci trade has transformed and markets have developed to a different kind of traded, greatly because of retail players along with additional emphasis on “numbers” instead of the “areas”.

Furthermore, he adds that markets are participating on the range game as of the moment.

USD/GBP: Searching for more weakness

Woodcock tells how he was able to maintain a sell call on cable last week, and he keeps on the bearish side for the cross. On the hitch, he keeps a 1.45 downside target, now with the pair trading at the lower end of its range and awaiting for a lower break.

Rastani keeps a long bias on GBP/EUR, with the cross being broken out of a flag on the previous day. When it comes to this, Woodcock gives an explanation on his Forex strategy to deal the patterns of the flag breaks.

The viewpoint for the FX space is also shared by Steven Woodcock and was able to mention that the markets operated in the data direction, however moves have not be as rapid compared before.

USD/GBP: Carney’s Kiss of Death

USD/GBP continues to trade heavy, GBP/EUR was able to handle to move around 0.70 which is maintaining the pressure on cable. The cross to plunge towards 1.5250 is expected to see by Woodcock. Mir also mentions the comments of Carney can be the reason of the downside move of the USD/GBP. Woodcock provides an explanation about how the Bank of England fails to do what it should do; still the forward guidance is on shambles.

NZD/AUD: notices downside possibility towards 1.09

The commodities continued to be under pressure and the KIWI is done with it. Aussie has moved back to its weak point. The NZD/AUD might go lower toward 1.09 area based on Woodcock forecasts. Both the NZD and AUD are set to weaken however the Aussie may be in for more weak point.

 

Gold Slows Down Along with Fed Rates Prospects

Nowadays, gold is intended to shine, some would fight. In any case, risk is certainly of the menu with the worldwide equity markets dropping brutally across the board.

On Monday, precious-gold slumped amid the potential interest rate climb pressure this year, in advance of the released of the America’s non-farm payrolls data. The yellow metal beat a low of $1135.99 per ounce, whereas it recently trading at $1138.34, following the $1145.06 launching.

On the previous week, Janet Yellen the Federal Reserve Chair said that the central back remains on track to increase the borrowing cost this 2015. According to her, the chaos in worldwide financial markets wouldn’t bring great effect on the liftoff decision of Fed.

“I expect that increase will go back to 2% over the following years as the fleeting factors weighing on inflation diminish,” Yellen shared.

The non-farm payrolls of U.S might show its workers additional 202,000 in September following the creation of 173,000 jobs in August.

The dollar rose a bit against a basket of huge currencies, where it has hit a soaring 96.53, basing on the dollar index.

Last week as the dollar moved back gold increases, however the gains were kept to minimum as investors grasp that the Fed would increase interest rates anytime soon.

 “Gold will keep on tracking trends in the dollar, as it is very susceptible to the monetary policy of U.S.” – a precious metal traded said on CNBC.

 “The constant strength of dollar will hinder the precious complex, whilst the timing of the very first interest rate hike of Fed will augment the improbability and continued the instability as well.” – MKS Group stated.

On Friday, the precious metal corrected a bit lower after the strong gains of metal that was observed on Thursday. But, bears weren’t able to push the cost through the 61.8% Fibonacci retracement of the August-September downtrend and pivot point every week at 1,142/41 up to now. A breakdown of this cluster can cause change on our viewpoint from the neutral to negative. Conversely, any potential positive expectations need a consolidation beyond the 100-day SMA, recently at 1,148. For the meantime, the current neutral forecasts are given support by technical indicators every day and every week.

The distribution between bearish and bullish market participants is totally neutral during morning on Monday as the share of former tripped 3% points on weekend.

Stock Investment and Retirement

When your personal computer freezes, you usually reset it. Maybe this is what happened last month as the industrial average of Dow Jones decreased to more than 1,000 points, finishing down to about 588 points.

For those who haven’t seen a major market downturn before, this might seem very frightening. In fact, some investors panicked and sold their shares because they feared they’d lose much.

The CEO of Longbow Asset Management in Tulsa, Jake Dollarhide along with other financial analysts predict that the market will be volatile through the end of the year, as investors are swayed by the problems in China, as well as the Middle East, and the slow economic growth in the US and also the direction of the interest rates.

According to several experts, on the other hand, these downswings would create even more opportunities for investors to purchase stocks at good prices.

Jim Huntzinger, BOK Financial’s chief economist, said, “I know volatility is upsetting, but at the end of the day, that’s where you find more opportunities.”

Some analysts suggest that your portfolio should be made up of local stocks. Not only will you support local brands but it is a lot easier to track compared to other stocks. According to these analysts, you might know someone who works from these local brands who will give you a general idea on how the company is doing. Or, since it is just near you, take a look around the company first before you invest on their stocks.

Fred Russell, the owner of Frederic E. Russell Investment Management in Tulsa, warns, “Before you buy, though, make sure you have the stomach for more volatility and a long-range horizon.”

It is important to note that investing in stocks and retirement should be two separate things on your financial plans. This is primarily because the stock market is unstable. Thus, you do not want to invest all your retirement funds on the stocks.

The chief financial analyst for Bankrate.com, Greg McBride, suggests that, “You need to have at least 40 percent to 50 percent of your retirement fund in stocks.”

McBride notes that retirement is not a reason to cash out on your stocks.

Furthermore, McBride added, “If you have a well-diversified portfolio, retirement is a lot like driving a car onto the interstate. You just keep going with your eye on the road, maintaining your speed and making only small course corrections.”

He said that people should be realistic enough when determining the amount of money they need when they retire. According to a poll conducted by Bankrate.com, about 37% of older Americans said that they were spending more in retirement than they imagined they would.

This is primarily the reason why most financial advisers think that people should maintain a stock portfolio up until their retirement years in order to be ahead of inflation and generate enough money.

McBride said, “Dividend-paying stocks are a good idea for retirees. They will throw off cash people can live on, and the rate can go up over time.”

Euro, Dollar, and the Emerging Markets Today

The euro’s value in the stock market has increased against the dollar on Thursday, Sept 24, having been strengthened by the downplaying of the European Central Bank (ECB) as they need further monetary stimulus soon.

However, the reason it gains against the yen is said to be due to the Japanese investors returning from the holidays and booking profits for the European unit.

Kaneo Ogino, the director of the Global-info Co in Tokyo, a foreign exchange research firm, said, “The euro is still a carry currency, so its gains might not last. Some people think that anytime the euro rises, it’s a good time to go short, to build short positions.”

According to Ogino, the trading volume was thin on Thursday as the Singapore markets were closed for the holidays and Tokyo reopens for the first time this week.

The euro bounced over $1.1200 overnight which was previously $1.1188; thereby, pulling away from $1.1105 that was Wednesday’s session low; it’s lowest since September 4th.

Mario Draghi, the president of ECB, said that although there are risks of inflation and risks to growth outlook for the European market primarily due to its slowdown, their bank may need enough time before they decide which action they should take.

The concerns regarding China, as well as other emerging markets, may lead to a weaker economy. The dollar currency has slipped against a bunch of other major currencies, including the Euro and Japanese yen, as the risk to global growth resulted to traders selling their risky assets, favoring those lower-yielding currencies.

The weakening of the dollar, after the Federal Reserve of the US intended to strengthen the monetary policy through increasing rates, has made it less favorable in terms of being a funding currency, according to several analysts. Furthermore, this move by the Fed increased worries on the global economy last week, thereby increasing anxiety in the market.

Ihav Salib, the head of international income at Federal Investors in Pittsburgh, responsible for its currency management, said, “You have all these uncertainties, and on top of that, you had a Fed that had a chance to give you some certainty.”

Meanwhile, the dollar experienced reverse gains against the Brazilian real and Mexican peso since they have hit record highs against the risky currencies from emerging markets early in the session.

According to Washington’s Western Union Business Solution senior market analyst Joe Manimbo, the rebound of the peso and real may be due to the traders taking their profits from their gains from the dollar.

The dollar index that measures the currency against 6 major ones was down 0.10% at 95.970.

The currencies of emerging markets such as Brazil, South Africa, and Turkey has their new lows against the US dollar due to growing concerns of pessimism because of global economic outlook.

The Brazilian real declined further 1.2% which was recorded as their lowest since 1994. The decline can also be noted in South Africa and Turkey as they also hit record lows. Indonesian and Malaysian currencies also declined as well.

Investor confidence has been declining from the leading emerging markets for most of the past year as the prices of various commodities declined. However, this trend has gained momentum ever since the US Federal Reserve announced their global concerns during the policy meeting that was held last week.

Bernd Berg, the EM FX strategist of Societe Generale, said, “Fundamentals for EM currencies are the worst in decades and this global bloodbath in EM FX will continue over the next weeks.”

However, some FX analysts predict that the decision of the Fed last week not to increase interest rates may start a relief rally and time for stability among EM currencies.

According to the EM strategist at Commerzbank, Peter Kinsella, all the Fed has caused is to keep uncertainty and high vitality levels “because we still don’t know how and to what extent they will hike rates.”

“Now people realise there is no fundamental reason for any EM FX rally and are forced to close their short US dollar positions initiated ahead of the Fed meeting.”

There are increasing signs of central banks to try to take these matters into their own hands. Last Tuesday, the central bank of Brazil has begun to auction $2 billion currency swaps. Several analysts, on the other hand, expect Mexico to extend their dollar auction programme which started in the summer in order to increase the value of the peso.

However, the market was still unconvinced as peso and real still continues to fall. Mr. Kinsella said, “You can get an idea of the lack of confidence in the authorities to control events by the way the market reacted to yesterday’s swap programme announcement in Brazil.”

Norway, on the other hand, cut their rates and signaled that there are more cuts for the next weeks. Barclays said that the Norges Bank is showing its willingness to utilize stimulus “to compensate for a likely deterioration in economic activity driven by lower petroleum investments.”