Category Archives: Forex / Currencies

Aussie Dollar On The Rise Even after Rate Cut

This morning the Australian Dollar is on the rise against its major counter parts despite the RBA announcing a 2.0% rate cut. This reflects speculation pre announcement that there maybe an even deeper cut so fx traders have reacted positively to the news with the Australian dollar up 0.45% against the dollar (AUD/USD) and 0.47% against the Yen (AUD/JPY).

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Alpari UK Arm Folds amidst Huge EUR/CHF Moves

The Swiss Central bank announced today it has abandoned plans to cap the swiss Franc against the Euro at 1.20. Driving currency markets to extreme turmoil and causing huge losses at a number of forex brokers as the day unfolded.

At some points the Swiss Franc rose 30% against the Euro, a rise not seen  since the first world war. Other brokers also sustained losses however most consider it “business as usual”.

In a statement on the Alpari website the company said “The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules.”

 

GBP/USD Sell Off on Scottish Independence fear

Traders have been selling the GBP/USD after fear reaches a tipping point on Scottish Independence, there are rumours that if Independence goes ahead GBP/USD will return to a level not seen since the recession, it is expected that the GBP/USD will lose around 10% of its current value.  The currency had its worst performance in over a year last week and the slide is expected to continue if polls on Scottish Indepence continue to narrow.