It seems that market participants switch off their brain when it comes to raising interest rates by the Fed. The recently released U.S. economic showed almost no signs of sufficient recovery of the U.S. economy. A slight rise in U.S. core consumer price inflation was enough to support the U.S. dollar, although this week released U.S. economic data was mixed. It is possible that the movement was driven by profit-taking before the long weekend.
I think that markets will remain vulnerable until the Fed really starts to hike its interest rates. But it could be a long way to this step.
The most awkward event occurred on Monday as European Central Bank (ECB) Executive Board Member Benoit Coeure informed only a selected number of persons about further steps of the ECB. These persons made use of this information and made profits. Coeure said that the ECB plans to expand its asset purchases in May and June due to low market liquidity in July and August.
Someone should say that there is no market manipulation.
Five banks (Barclays, UBS, Citigroup, J.P. Morgan Chase и Royal Bank of Scotland) agreed on Wednesday to plead guilty to market manipulation. Barclays, Citigroup, J.P. Morgan and the Royal Bank of Scotland admitted to illegally distorting foreign exchange prices of U.S. dollars and euros from December 2007 to January 2013. UBS AG pleaded guilty to manipulating the London Interbank Offered Rate (Libor).
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.