WikiFX-MY

Analysis on CFTC’s Latest Commitment of Traders Report

Latest statistics released last Friday by the Commodity Futures Trading Commission (CFTC) suggests that by October 22nd, net long positions for non-commercial futures contracts of US Dollar Index futures traded by speculators dropped by 6,226 contracts to 31,000 contracts, declining for the 3rd week in a row. On the other hand, USD has been in bearish territory for 76 weeks straight since May, 2018. Four other currencies have experienced substantial changes of over 10,000 contracts either long or short within the week.

The yen positions fell sharply for the second week, as net short rose by 11,000 and totaled 18,000 contracts. Previously the yen had been in bullish trend from the beginning of August to early October.

Gold price slightly up as PBOC increases holding

According to data from the State Administration of Foreign Exchange (SAFE), China holds 62.64 million ounces (about 1,775.8 tons) in September, the 10th month in a row for China to increase gold reserve.

Gold price inched up slightly yesterday (October 9th), but still being weighed down at around 1510 with resistance from the 40-day moving average.  

Gold daily pivot point: 1499---1503

S1: 1492           R1: 1515

 European shares inched lower on Wednesday as worries of a looming global recession kept investors from making bold bets, while a dive in the pound over fears of a disorderly Brexit pushed British stocks higher.

 The pan-European STOXX 600 index ended 0.2% lower paring deep losses from the morning, helped by London's exporter-heavy FTSE 100.

The dollar held firm on Tuesday after some signs of rapprochement between Washington and Beijing soothed investors' nerves after trade tensions between the world's biggest economies escalated yet again late last week and over the weekend.

 The dollar traded at 106.02 yen , flat in early Asia after having rebounded from near eight month lows of 104.46 touched on Monday.

FX168 Financial Daily (Hong Kong) News - Morgan Stanley’s chief economist Chetan Ahya wrote on Monday (August 26) that trade barriers raised close to the level that would lead the global economy into recession.

EURUSD approaches the monthly-low (1.1027) as Germany’s central bank warns “economic activity could decline slightly again in the current quarter,” and signs of a looming recession may push the ECB to implement more non-standard measures as the central bank struggles to achieve its one and only mandate for price stability.

 It seems as though the ECB will continue to push monetary policy into unchartered territory even though the central bank prepares to launch another round of Targeted Long-Term Refinance Operations (TLTRO) in September as Governing Council member Madis Muller insists that the weakening outlook “may mean that the central bank will have to add stimulus.”

 In turn, a growing number of Governing Council officials may show a greater willingness implement a negative interest rate policy (NIRP) for the Main Refinance Rate, its flagship benchmark for borrowing costs, and the account of the ECB’s July meeting may ultimately prepare European households and businesses for a more accommodative stance as the central bank “stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner.”

 However, it remains to be seen if the Governing Council will make a major announcement at the next meeting on September 12 as President Mario Draghi steps down at the end of October.

China Foreign Exchange Trading Center (CFETS) announced on Monday that the CFETS RMB exchange rate index(CFSCNYI) rose by 0.21% to 92.03 last Friday (August 16th), down 7.97% from the end of 2014.

 CFETS also announced the exchange rate index referring to BIS (BIS) currency basket (CFSBISCNYI) and the exchange rate index referring to SDR (Special Drawing Rights) currency baskets (CFSSDRCNYI) was 95.56 and 91.82 respectively, up by 0.28% and 0.09 from the previous week, down 4.44% and 8.18% from the end of 2014.

WASHINGTON, Aug 18 (Reuters): U.S. President Donald Trump on Sunday said he did not want the United States to do business with China's Huawei even as the administration weighs whether to extend a grace period for the company.

On Sunday, Trump told reporters before boarding Air Force One in New Jersey that he did not want to do business with Huawei for national security reasons.

"At this moment it looks much more like we're not going to do business," Trump said. "I don't want to do business at all because it is a national security threat and I really believe that the media has covered it a little bit differently than that."

Reuters and other media outlets reported on Friday that the U.S. Commerce Department is expected to extend a reprieve given to Huawei Technologies Co Ltd that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers.

Every economics student needs access to market news and reliable data. Thanks to a growing number of outstanding mobile finance apps. Not every app is free, and most are available for both Android and Apple devices. Each app is designed to make your life easier and bring the Big Data movement to your fingertips. Financial markets are fueled by getting better information faster, and these apps are a major asset for those trying to stay on top.

 WikiFX App

WikiFX App is used for inquiring whether a Forex broker is formal, legal and real. It provides all round service including inquiry of Forex broker's information, regulation, license, risk exposure, credit and valuation, platform verification and monitoring, complaints solving and investor rights protection, credit report download and related platform inquiry. Besides, WikiFX App offers comprehensive evaluation of every broker with front technology and authorized data on the basis of the value of license, regulation level, software quality, risk-control ability and business strength.

 Federal Reserve Economic Data App

FRED, or Federal Reserve Economic Data, is a must for any serious financial professional. It is difficult to describe the scope of FRED information, which includes nearly 41,000 different data series on international and domestic markets. With this free app, available on Android and Apple devices, a user can track broad macro and micro trends, review and download graphs and charts, and even create custom presentations on the fly.The time-series information on the FRED app earns a recommendation on its own, but the best feature for financial analysts is probably the customizable charts. Analysts create a lot of reports and give plenty of presentations, and the FRED app is a useful ally for these routine tasks. FRED is compiled from more than three dozen international sources and is housed on the St. Louis Fed's database. The information can be a little abstract or overwhelming at times, so it is recommended that a new user spend time getting used to the interface.

 The Financial Exams Prep App

App provider EduPristine boasts several apps for aspiring financial professionals, including this free study master available on Android and Apple phones. The Financial Exams Prep App series offers a complete study guide for licensing exams and other credentials, including the Chartered Financial Analyst (CFA) and Financial Risk Management (FRM) tests. The Financial Exams Prep App format is straightforward and easy to navigate. The CFA portion is broken down into separate books and section quizzes, including topics such as economics, alternative investments, ethics, and financial reporting/analysis. The FRM section focuses more heavily on different financial products, valuation and risk analysis. Though designed for early-career professionals who have yet to pass their exams, the material covered by the Financial Exams Prep App is still relevant for any analyst.

 uValue App

The uValue App is meant for financial analysts or investors who spend time performing corporate valuations. It is the brainchild of NYU Stern's Aswath Damodaran, who is widely considered a top mind in valuation methods in the United States. uValue has six standard formulas, including the weighted average cost of capital (WACC) and dividend growth model (DGM), as well as other crucial metrics such as levered/unlevered beta and exchange-rate forecasts. Novice analysts may struggle with uValue at first; the app assumes a strong familiarity with valuation practices and financial statements. There is not a data resource on board, so the app best functions as a fundamental plug-and-go calculator. However, as any financial analyst can tell you, it never hurts to be able to quickly throw a valuation together on the fly. The app is free and highly educational in its design, but there is a fairly serious drawback for some users: uValue is only available on iPhone and iPad.

 Accenture Digital Applications Platform

In May 2015, Global IT provider Accenture launched a bevy of new apps under its Accenture Digital division. The launch was part of the company's renewed focus on analytics services, which specifically target decision-makers in the banking and insurance industries. There are several different applications in the Accenture Digital release, each of which could be worthwhile for the right analyst. Of particular note are the Wealth Advisory Toolkit and Next Best options. Accenture points out its new apps should "increase efficiencies and lower costs by automating and streamlining routine functions." There is nothing revolutionary about the Accenture platform, but it is very convenient to have multiple tools from one source.

 MarketScan App

One feature immediately stands out about the Market Scan App: its price tag. With a standard download cost of $39.99 as of September 2015, MarketScan is an expensive alternative to better-known apps such as Stock Guru or Stock TickerPicker. While MarketScan is probably not the most efficient app for technical traders, financial analysts can get a lot out of the app's featured combo-analysis tools. There are thousands of possible combinations for movement in U.S.-based exchanges. Most analysts do not need to know the movements of individual stocks, but there is enough information on commodities, indexes and futures prices to make up for it. Much like the FRED app, MarketScan is great for creating graphs and charts to place in reports and presentations. There is not an Android version yet.

 Thomson Reuters Eikon App

This is a fantastic app for anyone with an iPhone, iPad, Android device or Surface tablet. Users receive the latest information on market data, including live profit and loss metrics, and portfolio tracking is simple and easy. Analysts can utilize this app's customization and personalization. Google Chrome users can even combine their Web surfing with the Thomson Reuters Eikon app via the Google Chrome SmartMenu, which makes it possible to scan through a page and directly extract data into the app. Thomson Reuters Eikon includes an underrated offline mode, which is handy for analysts who get stuck without a great connection. News and research can be saved for later, and are instantly updated online once connectivity is available. One complaint from users is the app's omnipresence; it is very difficult to get the app to stop eating up processing power when not in use. Older smartphones may struggle to keep up with the constant updating and news alerts.

 CNBC Business News and Finance App

The strict regulation of UK regulator FCA is a major reason that investors favor British forex brokers. However, the unpredictability of forex market means unexpected incidents can happen to any broker. Last Monday, WikiFX got many investors’ reports that they couldn’t access the platform of SVSFX. The notice on SVSFX website revealed a surprising news: the broker, regulated by FCA and was in business for over 10 years, was bankrupted on the same day, and information on FCA’s website also confirmed the news. The incident shocked the forex circle and worried many investors at SVSFX.

After SVSFX had failed, WikiFX promptly activated the EPC(Eye Protection Centre) program to compensate for investors’ loss. As a highlight of WikiFX, the EPC program is China’s first free forex compensation scheme. Since EPC’s creation, WikiFX has never stopped improving the service, striving to serve investors with EPC’s professional team, maximized coverage, unbiased and fair operation and transparent process. The program has drawn the interests of both forex investors and brokers.

Professional team The EPC Council and the Arbitration Committee both consist of experts of the forex circle, many of which are former employees of brokers who have accumulated rich experience and expertise during decades of forex trading. With such a professional team, investors’ pressing needs can be addressed with higher efficiency.

Maximized coverage According to the EPC rules, WikiFX will receive from the compliant broker a deposit that serves as a guarantee fund for its investors. The fund will help reduce investors’ loss even if their broker runs into any problem. In SVSFX’s example, if investors fail to receive compensation from the broker within 6 months of its bankruptcy, WikiFX will assess the criteria of the investors who have signed up for EPC program on WikiFX website, and those eligible will be compensated for up to ¥50,000 per person.

Unbiased and fair operation WikiFX will estimate the appropriate guarantee fund for a broker according to its WikiFX rating, and brokers with lower ratings generally need to provide higher guarantee fund. In addition, to ensure EPC’s impartiality and guarantee investors’ rights in facing any possible conflict of interests, the EPC Council oversees the operation of EPC Committee, and ensures the Committee as well as the Assessment Panel and Review Panel make independent and impartial decisions based on facts when dealing with compensation claims.

Transparent process Once the EPC program is activated, WikiFX will publish the detail compensation process and other important information investors need to know on both WikiFX App the official site www.wikifx.com, so investors can easily access them. The compensation includes the following steps: -The applicant registers and uploads information; -EPC assesses the applicant’s materials; -The list of eligible applicants is released to the public; -The compensation beneficiary signs an agreement; -The compensation case is made public. Investors can also scan the QR code and join WeChat group to get a step-by-step guide of EPC compensation application and other information updates.

WikiFX recently established strategic partnership with Vietstock, one of the largest financial media in Vietnam. By deepening cooperation online and offline, the two partners aim to popularize forex education in Vietnam and promote local financial development and prosperity.

Building on profound analysis and research of the Vietnamese financial market, the partnership helps Vietstock to draw on WikiFX’s forex expertise as a supplement, while allowing WikiFX to open up the Vietnamese market and carry out the company’s strategic blueprint in SE Asia by leveraging Vietstock’s local influence in finance. Both sides can significantly benefit from each other’s complementary strength, reaching a win-win cooperation.

WikiFX has been well-prepared to globalize its services, offering over 10 language streams for different countries and regions in WikiFX App. But besides such favorable conditions, to further open the market in a foreign country also requires the support from local media. In light of the new partnership, Vietstock will post WikiFX’s search box for forex brokers on its website.

Local users can find WikiFX’s broker search on the homepage of Vietstock. They can easily look up a broker by inserting keywords, such as broker’s name, license number or website. The WikiFX portal also enables Vietnamese investors to access WikiFX’s other service in full dimension, such as forex industry news and exchange platform for both investors and brokers.

On September 21st, 2019, WikiFX’s offline exhibition brand WikiEXPO will host the Wiki Finance EXPO in Ho Chi Minh City(HCMC) at Windsor Hotel. Vietstock will fully support the exhibition by harnessing its advantages to increase media exposure of the event, while Vietstock’s CEO will also present a keynote speech during this forex celebration.

Through Vietstock’s all-round report, the Wiki Finance EXPO will win more attention from local investors and well-established global forex brokers. This not only increases investor’s awareness of WikiFX’s services and helps to enhance the forex environment by exposing illegal brokers, but also serves to boost local forex market by attracting well-established brokers to Vietnam to expand their business.

In joining hands with Vietstock, WikiFX has taken another stride towards expanding its business on the SE Asian market, an step well-paved by previous preparations, such as the launch of WikiFX App (Vietnamese version) and establishment of WikiFX’s Vietnam branch. Looking ahead, WikiFX will continue to root itself on the local market and expand its business to contribute to a thriving forex industry in Vietnam.

Broker: AILEN Regulatory status: overrun Complainant: Mr. Jin Cause of complaint: blocking investor’s withdrawal

Nowadays, the proliferation of brokers on the forex market makes it harder for investors to make a choice. Without knowing about the brokers thoroughly, investors can be easily swindled by illegal brokers. Recently, Mr. Jin reported the illegal forex broker AILEN to WikiFX and shared his experience.

Event recap In early June this year, Mr. Jin signed up at AILEN who claimed to be regulated by NFA(US) and started trading. Coaxed by a signal-provider, he made several deposits that added up to over US$400,000 earlier in his investment; yet the large input failed to bring proportional profits, as he lost approximately US$70,000 in trading. Feeling much discouraged, Mr. Jin began to withdraw his money. Having successfully withdrawn US$200,000 through separate applications, Mr. Jin again applied to withdraw US$5,000 on July 27th. But unlike before, the application remained “in progress” for 3 days. Completely disappointed, Mr. Jin decided to withdraw his remaining balance on July 30th, and the application was once again ignored. Mr. Jin tried to contact the signal provider, who offered no solution besides claiming that “he was also a victim", which sounded like a lame excuse. Meanwhile, Mr. Jin also contacted AILEN’s customer service but failed to get any reply. To date, Mr. Jin still has US$16,000 in his account yet to be withdrawn. AILEN has defrauded investor by ignoring withdrawal applications and detaining investor’s capital.

Analysis Mr. Jin fell victim to the scam largely because AILEN called itself a broker under NFA(US)’s strict regulation, yet further investigation of the broker’s profile proved the statement unreliable. Firstly, AILEN’s regulatory information is inconsistent with its official website AILEN’s official website claims it holds NFA license with regulatory number 0502205, but upon checking NFA website, the license belongs to a company named ACERICH, which is not in business at the moment. Strangely enough, AILEN’s information can be found on NFA website and its regulatory number is 0520444. Though the reason for this inconsistency is yet unknown, one thing certain is that AILEN’s information on its website doesn’t match the regulatory information.

Secondly, a newly registered domain name Per investigation, AILEN’s official website was registered only about half a year ago on January 24th, 2019, suggesting low credibility and insufficient experience of the broker.

Thirdly, Trading software According to the WikiFX App, AILEN uses white-label MT4/5 software with servers set up in Singapore and Hong Kong respectively. White-label brokers usually have higher risks, so investors must be careful in choosing such brokers.

Conclusion WikiFX App shows AILEN holds an NFA(US) license for generic financial services and is currently operating in overrun business. The broker with a WikiFX rating of 1.20 has low credibility, and WikiFX suggests investors to stay away from it.