Intercontinental Exchange Seeks to Change Futures Currency to Euro

Intercontinental Exchange (ICE), an international network of clearing houses and exchanges for financial/commodity markets, may change currency for Liffe commodities such as cocoa futures from Pound Sterling to Euro, according to stakeholders.

Europe remains as the primary region for chocolate demand so players in the industry prefer contracts in Euro currency.

ICE is still sounding out the market regarding this planned move. Yet, there is no fixed schedule for the implementation of the decision, sources revealed.

There were no statements from exchange officials.

The currency of this contract has been discussed from time to time for several years. However, the plans of competitor CME group to embark on a cocoa contract gave new momentum to the argument.

Until now, CME has not disclosed the currency of its new commodity but sources revealed it was also considering the euro.

There was no comment from CME.

ICE garnered the NYSE commodity contracts to include cocoa in November of last year.

Chocolate manufacturers purchasing cocoa ingredients like powder and butter make purchases in euro notes.

Natural Gas

Points for natural gas has eased by 3 as traders showed no interested in the item leaving gas 3.763 going downwards as summer weather has not yet started. For the last 6 sessions, the price of natural-gas prices for a new eight-month low making the fourth time in six sessions.

Recent Outlook of Short-Term Energy projects a record build of nearly 2,600 bcf starting April all the way to the end of October with inventories at 3,431 bcf at the end of October. Following the expectation of EIA, midway through the summer, natural gas storage injection season is on line for an overall build record.

At the end of the cold months, storage inventories recorded 857 bcf considered the lowest level since 2003 and 1,000 bcf below compared to the 2009-13 average. EIA said that the refill season started in slow pace April but it quickly increases in May exceeding a 5-year average levels every week since the surge started.

Between periods of 10 weeks ending Apr. 25 towards July 4, storage inventories for net injections amounted to 1.04 tcf, making the fastest increase since 2003. These surges substantially narrowed the space between current storage and the 5-year. Present inventories showed bcf to 683 just below the 5-year average.

FOREX Committee Releases Semi-Annual Review of North America’s Currency Volume

USD FOREXWeekly results of the North American FOREX Volume showed a complete picture of the foreign currency market’s condition. The latest volumes were made public by the Foreign Exchange Committee through its semi-annual study.

Some 25 institutions played a role in the research piece uncovering most recent trends in the FX industry. Categories representing the data points include customers, currency pair, execution sets, and commodity. The survey data is divided into four FX instruments, 13 currency pairs, four counter-party formats, and five execution technique classifications. Argentina’s peso has been excluded due to current chaotic developments and the nation’s near-default that brought trading volumes for that note to a stop.

Major trading activities involved the British Pound, Euro and Japanese Yen but not the US Dollar.

Spot transactions remain favoured instruments for trading currencies with 43 percent of volumes being transacted on that market. FX swaps only come in second place. For the execution method, electronic trading is leading the pack with 41 percent of transactions while electronic brokering added percent.

Trading Platform Expands Bitcoin Trading to the Euro Zone

bitcoin tradingAtlas ATS, the bitcoin trading company based in New York, says it has plans to bring the virtual currency trading to the European Continent via strategic collaboration.

It is teaming up with Recol Pro S.A. from Spain so the platform can be accessible to European investors hoping to venture into digital currency markets. Recol also operates Romanian Business Exchange. Investors availing of Atlas services will get Euro-denominated accounts and access to ATM. Trading books for Atlas ATS Europe will be linked directly with order books used for United States investors. These provide them a profound liquidity pool.

Customers need trustworthy financial companies that will provide them a trading platform for buying and selling digital currencies. They also require secure storage for currencies and ATM network for accessing their accounts and converting digital currency into local currency if necessary. This is the main provision for Bitcoin as well as digital currencies to be accepted worldwide. Atlas will be part of the most complete and convenient digital currency service. The Atlas buzzword is both global and local. It means proposing a trading system worldwide by teaming up with first-rate financial corporations that are familiar their respective markets.

Recovery of Chinese Markets cause Asian Shares to Rise

Chinese markets rallied resulting in higher Asian shares as regional traders were inspired by the development although investors remained cautious because of the expected flood of economic news coming from the US.

The key stock index in Hong Kong reached its peak after 3 and ½ years due to optimism that the world’s second-largest economy has progressed while investors ventured on more growth-friendly rules from Beijing. Chinese banks led the charge following reports from Reuters that China’s fifth-biggest banking institution was seeking additional private investors.

The MSCI emerging markets index of Asia-Pacific shares beyond Japan climbed by 0.2 percent while South Korea’s index added another 0.6 percent.

Japan’s Nikkei Stock Average crept by 0.3 percent after varied local economic news came out. Employment availability increased in Japan after more than two decades. Wall Street provided minimal help as major indices approached principal chart barriers. Dow went up by 0.1 percent, while Standards & Poor 500 gained 0.03 percent. Meanwhile, Nasdaq lost a minimal 0.1 percent. Oil prices decreased because of excess supplies from the North Sea and West African crude and weak demand in the Asian and European markets

Investors Remain at the Sidelines as Fed Policy Review Nears

forex marketFOREX investors were in low profile mood while waiting for the forthcoming policy assessment by the US Federal Reserve.

Meanwhile, the US currency came almost to a six months climax against various major currencies in the trading floor. The Fed is expected to decrease its monthly program of bond purchase by an additional $10 billion even as it sets to bring to an end the system by yearend. Investors are sitting tight as GDP and non-agriculture payroll reports are yet to come.

Because of this, the dollar index floated in an agonizing 76 tick range compared with last Friday’s 283 tick limits. The dollar remained flat at 81.006.

On the other hand, the euro was held to an eight-month furrow of $1.3421 as the week ended. The currency traded at $1.3438, shuffling between $1.3427 and $1.3440 at the beginning of this week. The US dollar was steady against the Japanese Yen at 101.85.

The lack of unpredictability in exchange markets has been a recurring attribute for the last six months and semi-annual FX reports have highlighted this trend.

UK FOREX Trading Crashes in the midst of Instability and Collusion Investigation

The volume of currency trading in the UK plummeted by six percent last April as against the same period in the middle of quiet price fluctuations and the ongoing probe of trading activities that rocked the FX markets.

The regular currency turnover in Britain was recorded at $2.4 trillion more than three months ago, according to a declaration made by the Foreign Exchange Joint Standing Committee of the Bank of England. Trading grew by seven percent from October due to the record turnover in currency swaps. At the same time, spot volumes went down by 21 percent lower than the April 2013 level.

Inferred unpredictability in FX markets collapsed this month in the wake of low-key price swings as policy makers supplied unmatched amounts of money to stimulate growth.

Industry regulators and international prosecutors are studying claims allegations that dealers in the world’s largest banks traded earlier than their clients and conspired to fix the WM Reuters rate. This is a yardstick that pension funds and money traders employ in finding out what they pay for international currencies. Over 25 traders have already been terminated or suspended after the accusations came out in 2013.

US Currency Controls Currency Trading Floor

US Dollar FOREXForeign exchange markets traded in a dreary trend even as majority of countries in Asia were taking pleasure because of an extended weekend.

The Euro is trading with a bearish mood as investors remain cautious about geopolitical threats and expected outcome in Europe arising from harder sanctions on Russia. According to international media outlets, some 350,000 jobs in Germany alone have been jeopardized if measures against the Russian nation are enforced.

The most recent report from the Commitment of Traders disclosed that Commodity Futures Trading Commission of the US highlighted that leveraged traders turned into USD buyers last week. The data calendar focus today will consist of Italian business confidence figures this morning. The US session concentrated data from the Purchasing Managers Index as well as the approaching home sales and Dallas Manufacturing Survey. This is ahead of what is expected to be a good week for the American Dollar as 10-year treasury yields have gone above the 2.455 percent level.

Russian Stocks Topple Down Following EU Injunctions

Russian stocks fell on the third day while the Euro reached the lowest level as the European Union imposed fresh economic restrictions on Moscow.

This led to a worsening relationship between Russia and the rest of Europe. The EU leadership reached an accord to enforce more penalties on this nation. Meanwhile, the Russian Government said these actions will just weaken the drive versus violence although Moscow claimed it will not argue with the 28-member Union.

European stock exchange remained flat in restrained trade despite the reaction of the Russian Government along with the effects of said sanctions. Stocks in Moscow were adversely affected by the verdict of an international tribunal that Russia must compensate shareholders of the out of date oil production firm (YUKOS) for pocketing assets. The total amount is estimated at $50 billion. This is counterproductive for a country which is on the brink of economic collapse. The denominated currency of Russia decreased against the Euro and US Dollar by more than two percent.

Weekend Round-Up

Asia is showing little movements today. CAD, CHF, EUR and GBP are all very quiet not often in10 point ranges versus the USD.

Yen seemed to be stuck in a very tiny scope. CPI figures showed Japan and rate for national headline rate deescalate versus last month after sales tax hike were adjusted. BOI already predicted the drop in the CPI as the dip over summer but then a recovery. USD/JPY moved up and down in a certain12-odd point range for the session.

NZD and AUD exhibited little more activity. NZD had buyers at 0.8560, garnering 25 points prior to losing some steam and reverting back to just below 70 before it became steady around there. IMO is still too early to be searching for an underside in pair NZD/USD.

AUD/USD was just sideways when it lost 20 points over about an hour and lost its little bit of bids at 0.9400.

Around the same time, oil lost a few cents from session highs while AUD dropped while gold was basically sideways.