Currency and Stock Markets. Daily Insights

[stoch]

EIA data was a surprise for the market, casting doubts on US demand strength


Oil prices came under pressure on Wednesday, WTI struggled to stay above the $70 mark. The catalyst for the decline was bearish EIA report on commercial oil and refined products inventories in the United States. The report is now having a bigger impact on the market than usual, as it presents one of the major uncertainties on supply side. OPEC pumps oil in accordance with established quotas, and therefore supply from the cartel is more or less predictable.

The EIA report was a bit ambiguous as it contained both positive and negative information for the market. Stocks of crude oil decreased by 5.24 million barrels in the reporting week, confirming the API inventories data (which also indicated a reduction in reserves), nevertheless, refined products - gasoline, distillates and propane reserves jumped 20.71 million barrels which was a kind of a shock for the market:

The growth of finished products may indicate that the demand for them has decreased (i.e., fuel consumption in the United States has decreased) or supply has increased, or there was a combination of these factors.

In search of an answer to the question of what caused the increase in inventories, it is worth paying attention to the capacity utilization of refineries. The report showed that it rose 2.6% to 91.3%, the highest since January last year:

Taking into account the change in the activity of refineries, the change in demand for finished oil products turned out to be negative and amounted to -1.43 mln bpd. However, it should be borne in mind that we are approaching the travel season in the United States, which is a seasonal factor of increase in fuel demand.

On the supply side, the bulk of the negative news for the market comes from Iran. The country has ambitious supply growth targets, from 2.4 million bpd to 3.3 million bpd in the first six months to 4 million bpd. over the next six months, provided that the United States lifts the sanctions.
Iran's supply is expected to rise, however any news indicating progress in the nuclear deal could trigger a correction in the market, which, however, should short-lived as the demand side situation improves.

Later today, OPEC is to publish a monthly bulletin that will report on the cartel's production in May, as well as provide updated forecasts by the end of the year. On Friday, the IEA will release a report, which will also provide its views on the market. Both reports could cause increased price volatility, especially if the outlook changes for the worse, as the market remains fragile after recent gains.



Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

Fed meeting impact will likely to be short-lived and here is why



Greenback holds position on Monday after the short-squeeze last Friday. Gold resumed its plunge while nominal yield on long-dated US debt (Treasuries) remained subdued – in overall this suggests that expectations of inflation overheating somewhat retreated. This could happen for two reasons - either markets feel that US growth rate cools down or they expect some updates on the Fed credit tightening. Considering that the FOMC meeting is around the corner, the reason is most likely the second.

The reaction in USD, gold and Treasuries suggest that asset prices factored in a possible change in the policy at the meeting on June 16. Interest rate and bond-buying pace are expected to remain at current levels; however, the Fed may start to talk about when it intends to scale back massive bond purchases. Even this slight policy tweak should have an impact, given that other central banks have taken the first step towards exiting the anti-crisis policy. Therefore, if there is a comment, a la "we start to discuss the timeframe of QE tapering", it is unlikely that this will cause a long-lasting surprise in the market.

But the Fed is hardly ready for anything more. There is actually no need for that. The comfortable US economic situation (aka “Goldilocks economy”) and looming summer calm in the markets are two key reasons for the Fed to be cautious and extend the wait-and-see stance. In addition, rising demand for long-term Treasuries since the beginning of June suggests that the Fed has managed to convince market participants that high inflation in April-May is temporary. So, there is no market pressure on the Fed to tell something about QE tapering. If the Fed rushes now with hints about reduction of asset purchases, it can sow doubts that inflation is completely under control. This is certainly not in the best interest of the Fed officials.

As a result, the emerging trend of this summer – search for yield amid subdued volatility - is likely to remain intact. Already on Friday, we saw strengthening of 10-year Russian bonds by 11 bp after Bank of Russia hiked key rate by 50 bp. The yields on «second-rate» Eurozone bonds - Italy and Greece - also declined, their spread to 10-year German Bunds dropped below 100 bp., indicating that investors are willing to take risk in exchange of returns. This week, investors to EM will likely pay attention to Brazilian Central Bank, which is supposed to raise interest rate by 75 bp. In general, there are clear signals that demand for risk is on the rise.

As one of the main funding currencies, greenback has inverse relationship with demand for risk, therefore, it’s likely that recent USD strengthening can be attributed purely to the FOMC even risk. The index may reverse in the area of 90.80-91.00 in the second half of the week:

Meetings of the Norwegian Central Bank and the Bank of Switzerland will also be held this week. The Central Bank of Norway gave a signal that it will tighten credit conditions, and the SNB, on the contrary, that it will not rush in this matter. Therefore, EURNOK and EURCHF may tend to move in different directions this week - the first is down and the second is up.

For EURUSD, the situation largely reflects the alignment of the dollar index: a potential downward movement on the FOMC will probably not go beyond 1.2075 from where a rebound can be expected:

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[John_Ortega45]

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[stoch]

Medium-term uptrend in EUR, GBP under threat after Fed surprise



The Fed left its policy unchanged yesterday, but the updated forecasts and dot plot showed that the Central Bank does not believe in its own story about temporary high inflation. The reaction of the markets was acute and should not surprise, given the fact that in the past few months, the Fed’s policymakers worked hard to convince investors that high inflation will not last long, and therefore will not impact rate hike outlook. It turned out that this is far from the case.

Compared to the previous dot plot, there have been significant changes: 13 out of 18 officials expect a rate hike of at least 25 bp. in 2023. There were only 7 of them in March. As for 2022, 7 out of 18 officials expect at least one rate hike; in March, the hawk camp was less numerous - only 4 policymakers.

The forecast for GDP growth in 2021 was revised upward by 0.5% - from 6.5% to 7%. Inflation, according to the forecasts of the Central Bank, will rise to 3% by the end of the year and then begin to cool down. Notably, the growth forecast for 2022 remained unchanged, and for 2023 it was raised from 2.2% to 2.4%, probably reflecting optimism about the infrastructure initiatives of the Biden administration.

The sharp increase in the degree of optimism in the Fed forecasts brings forward the start of quantitative tightening (QT), which was clearly demonstrated by the bearish reaction in the Treasury market. The yield to maturity of longer-dated bonds, which are more sensitive to changes in interest rates or inflation, soared from 1.49% to 1.59% on Wednesday. Clearly, there was a massive sell-off of longer-maturity bonds which boosted demand for cash. The USD index soared from the level of 90.50 and continues to rally today fueled largely by the Euro weakness, as it now turns out that the ECB is noticeably lagging behind other Central Banks in developed countries in tightening credit conditions.

Formally, the details of the QE tapering will likely appear at the conference in Jackson Hole in August or at the meeting in September.

The risk of an early tightening of credit conditions in the US makes the dollar less attractive for carry trades, so investor focus is likely to shift to EUR and JPY, further weakening these currencies against the USD.

Technically, an interesting situation arose in the EURUSD and GBPUSD pairs, where yesterday's fall sent prices to the lower border of the medium-term uptrend:

Breakout and consolidation below 1.1930 for EURUSD and 1.3890 for GBPUSD for several sessions may mean that the medium-term uptrend in the pairs is broken and, at best, we will see consolidation of EURUSD below 1.20 and GBPUSD below 1.40 with occasional sales in this summer.


Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

Next week could be tough for low-yielding EUR, GBP and here is why



May UK Retail sales came slightly worse than projections, following strong gains in April. However, like the United States, UK consumers boosted consumption of services that became available after economy reopening by cutting spending for retail goods. The data had little impact on the pound as FX markets appears to be pricing in implications of the June Fed meeting.

“Instead of a thousand words” in the official communique or Jeremy Powell's speech to signal the move to a tightening cycle, the Fed revised its GDP and inflation forecasts sharply higher:

The dot plot also showed that overwhelming majority of central bank policy architects see the interest rate at a higher level than it is now in 2023. This data was enough to predict a transition to the QE tapering at the end of summer.

On Friday, the dollar stalls near 92 points resistance level, enjoying its highest level since mid-April. The USD gains are broad. Trade weighted exchange rate of the US currency is up 1.5% this week, commodity currencies from the G10 sank 2.5% on average against USD. The factor of China's intervention in the commodity market (price control) joined the Fed's policy, which hit the currencies of countries expressing high sensitivity to price swings in commodities.

Nevertheless, the rally of US currency finds much less support from the Treasury market on Friday. The movements in yields during and after the Fed meeting are strange. Yields on bonds on the horizon of 5-30 years after the initial reaction to the Fed, during which they rose sharply, erased gains completely on Friday:

It’s also possible that the downside reaction in long-term bond yields could be market perception that the Fed signaled about policy tightening too early and now risks to slow down expansion because of that. In other words, markets could be pricing in a policy error from the Fed.

Further prospects for the upward USD move will depend on the trajectory of yields. If their rally resumes, it will be much easier to see US currency gains as well.

The Fed move on Wednesday was good news for the ECB, as it definitely helped to curb appreciation of the euro. Trade-weighted exchange rate of the euro fell by 0.5% to the lowest level since July 2020. The ECB chief economist added fuel to the fire saying that even in September, the ECB may not have enough data to move towards tightening. Divergence of ECB and Fed policies unexpectedly changes its sign and now the markets expect the US Central Bank to move to tighten credit conditions earlier.

In the short term, the EURUSD growth attempt is likely to encounter resistance in the 1.1950-1.1980 area. Next week, the target for the pair will probably be the level of 1.1835 and then 1.17 closer to mid-summer.

The next week may also be vulnerable period for the GBPUSD. Despite the fact that the pound copes better with the onslaught of USD compared to the euro, thanks to the hawkish position of the Bank of England, the risk of worsening trade or political spat with the EU could increase pressure on the currency. The target for the pair is 1.38-1.3810 in the next trading week.


Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

USD, EUR, CAD weekly outlook: more hawkish Fed hints in cards




Fed spokesman James Bullard dotted the i's, saying on Friday that Powell initiated discussion about reducing monetary stimulus (aka QE tapering). It is very strange that Powell himself did not report this at the press conference on last Wednesday, nevertheless the markets responded to the news accordingly. The US currency index climbed to 92.40 points, the highest level since April 12, Treasuries yields with maturities of 5 years or more tumbled to new local lows, pricing in lower risks of economic overheating. Several Fed officials are due to hold a speech this week, so bullish surprises may not be over for USD.

Back in April, Powell said that it was not the time to discuss slowdown in the pace of QE. Even earlier he was even more dovish stating his famous “we are not even thinking about think about raising rates”. The Fed position, as we see, is altering very quickly and it is clear that officials may be underestimating the pace of recovery from the pandemic.

An earlier roll-off of QE may indicate that the neutral interest rate (at which the tightening cycle will end) may be lower, which may have also boosted demand for long-term bonds. Implied date of the first-rate hike by 25 bp has been also brought forward to November 2022.

Clearly there is a room for development of the story with hawkish Fed which should improve USD position against currencies which offer low interest rates. The ECB and the Bank of Japan are noticeably lagging behind in hawkish rhetoric what increases the risk of more downside pressure in EURUSD and further gains in USDJPY. As for EURUSD, the target after downside breakout of the upward medium-term trend is horizontal level of 1.17, which will roughly correspond to the March high in USD index at 93.40:

Last week there was a strong decline, so the initial downside momentum has probably fizzled out and EURUSD is expected to rebound to 1.1920/40.
There is, of course, still a chance that Powell will correct his colleague during his testimonial before the US Congress on Tuesday, but if he confirms that the debate on tightening credit conditions has begun, the dollar could rise even higher.

China's intervention in commodity markets and tightening by the Fed also helped form a peak in commodity prices. Bloomberg Commodity index peaked out in early June and then fell to the level of early May and is unlikely to soon return to growth. This circumstance jeopardizes the further rally in commodity currencies - AUD, NZD, CAD. For example, in USDCAD, the price has broken through the downtrend line that formed in the middle of last year - definitely a negative signal for CAD growth prospects:

The calendar of events and economic reports on the EU is not particularly interesting, but it is worth paying attention to the speech of the head of the ECB Lagarde in the European Parliament. It is likely that she will gladly take the opportunity to highlight the difference in policy stances of the ECB and the Fed, so that it could further weaken the euro, realizing one of the ECB's key goals - to stimulate export sector.

The most important reports of the week will be the European PMI, which will be released on Wednesday, the decision of the Bank of England on Thursday (which by the way has every chance to support the pound), as well as the US inflation report (Core PCE) for May. The weekly report on US unemployment benefits may have a material impact on market sentiment, given the great importance of the upcoming June NFP.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

What we learned from the Fed this week. Is carry trade alive and well?


Central banks of major advanced economies and emerging market countries have recently expressed completely different views on further near-term evolution of price growth - the former believe that high inflation won’t last long, while the latter apparently do not agree with this. The Mexican Central Bank unexpectedly joined the Russian and Brazilian Central Banks, which began their tightening cycle relatively aggressively. The bank surprised investors on Thursday by announcing a rate hike from 4% to 4.25% in response to inflation running above 6%, which failed to cool down despite expectations. None of the Bloomberg economists surveyed expected this decision.

The peso strengthened against USD and, together with other EM currencies, now looks like an attractive territory for investors, as following the “parade of speeches” by the Fed officials this week, one can say that the debate about tightening of credit conditions has been postponed at least until the conference in Jackson Hole in August. Growing policy divergence between the Fed and EM Central banks as well as low volatility are expected to be the key drivers of carry trade flows.

Dynamics of major EM currencies against the dollar since the beginning of the week


The S&P 500 set a new record of 4,270 points on Thursday as Biden seems to be making success in getting his infrastructure plan through Congress. News came in yesterday that he managed to reach agreement with a number of Republican senators. Curiously, the plan includes stimulus, however provides little detail about tax increases. Those sectors, which seem to be hanging over by strict regulation and the treat of increased taxes can apparently relax for now. The combination of the fiscal package and absence of imminent tax hikes sets the stage for a modest summer rally in risk assets, given a period of low volatility, in which strong downside moves are not common to see.

The final comment from the Fed this week came from Vice President Williams. Speaking on Thursday, the official chose to join his fellow hawks in stating that there is a risk of more upside in inflation and monetary policy must be prepared for it. Thus, he hinted that persistently high inflation readings will most likely force him to vote for reducing the pace of asset-purchases (QE) earlier than expected.

In opposition to Williams and other hawk officials, chairman Powell spoke. On Tuesday, he said that the fear of high inflation isn’t a sufficient condition to start raising rates. The initial market reaction to Powell comments was as if the Fed had extended low-rate guidance, but trading in the second half of the week indicated that the market would likely start pricing in monetary policy tightening if inflation in the US exceeds the reading in May (5% in CPI) over the next two months or will continue to accelerate.

Many market participants do not share Powell's opinion on inflation. For example, BoFA in its latest report expects inflation to remain elevated for two to four years, and only a collapse in the financial market could prevent Central Banks from raising rates.

The share of cash in portfolios of investors according to BoFa data is at 11.2%, which is well below the long-term averages. In the week ending Wednesday, investors bought $ 7bn in shares and $ 9.9bn in bonds, reducing investments in short-term money market instruments by $53.5bn.

In the second half of 2021, the key market topics, according to the BoFA, will be high inflation, the transition of global central banks to policy tightening and slowdown in economic growth.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

Delta variant is getting on the market radar. What does it mean for equity markets?


The newsflow related to the new Covid-19 delta variant is putting a dent on equity markets. What disturbs the most is that even countries with a high proportion of vaccinated people are forced to return some social curbs as this raises the question about vaccines efficacy. Some countries attempt to contain the outbreaks, others are taking preventive measures, however market worries stem from the fact that growing number of key economies are getting involved in this trend. Stock markets in Europe fell today after German newspaper Bild reported that in light of the threat of the new strain, European leaders will discuss measures for travelers returning from other countries. Tourism and travel sector led declines. Investors also reacted negatively to the news that Hong Kong has placed the UK on the list of countries with "extremely high risk", completely banning the entry of travelers from this country. The UK100 index posted the largest loss today among the major European indices, potentially reflecting investor doubts about the effectiveness of the Astra Zeneca vaccine against the new strain.

In the forex market, the dollar is taking a decisive offensive ahead of the June Non-Farm Payrolls report on Friday. The US economy is expected to add 700,000 jobs, which will increase the chances of an early start of tightening of the Fed policy. Last week, a number of representatives of the Fed spoke in favor of raising rates, only the head of Powell chose a bearish tone, but the impact of his remarks on the market was short-lived.

Last week, on Friday, data on US income and expenditures were released, which showed disappointing MoM gains. However, the main interest of the market was of course focused on inflation indicators. Annual growth of Core PCE, which is the preferred Fed measure of inflation, amounted to 3.4% in annual terms, monthly growth did not meet expectations. The US debt market apparently cheered bullish inflation release, yields of longer-maturity Treasuries dropped, indicated that investors flocked into bonds following release of the data.

Despite the fact that the Fed considers inflation to be temporary, it is at its highest since 1992:

There are many upside inflation risks, in particular if firms in the US continue to experience hiring problems. Like last time, the dollar may react upward, and Treasury yields will rise if the NFP report shows that monthly wage growth will again significantly exceed the forecast. This will most likely indicate that the labor shortage in the United States persists, which means that companies may be inclined to raise prices, shifting inflation to consumers. It is highly likely that the markets will perceive this as an increased risk of the Fed's sudden move towards tighter credit conditions.


Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

Fears of new Covid-19 strain fuel risk-off USD rally

The Dollar rose to the weekly high amid flight of investors from risk assets in Europe and Asia. A growing number of countries announce restrictions and partial lockdowns (for example, in Australia) as well as impose travel curbs with certain countries. The United States has added Saudi Arabia to its covid list with the note “not desirable to visit” which is not a good sign for risk sentiment outlook. In addition to local sell-off in affected sectors, government responses force markets to take seriously the threat of the spread of the new strain. A direct consequence of this is an overall rise in risk aversion level.

The data on inflation in Germany were in line with the forecasts, however markets needed an upside surprise to keep the euro supported. The absence of inflation risks in the data is a favorable signal for the ECB, which seeks to delay the start of tightening policy. The report fueled sell-off in EURUSD.

From the technical point of view, EURUSD outlook is becoming more bearish. The price consolidated below the lower bound of the trend channel after the breakout, which increases the chances of a further decline:

The situation is similar in GBP, only the decline there is even more powerful, since the Bank of England disappointed with its policy decision last week while covid situation is apparently slightly worse than, for example, in Europe:

Despite the rise in cases, the hospitalization and death rates need to be closely monitored to see if the government can move to restrictions. If the numbers are favorable, the risks of new restrictions in GBPUSD will decrease, which will speak in favor of strengthening of the pair. However, it is too early to talk about it.
Currencies sensitive to oil prices suffered losses on Tuesday awaiting OPEC's decision to increase production by 500 thousand bpd. OPEC meeting is due later this week. The correction in oil may continue should key oil consumers roll out more restrictions, which will undermine the outlook for oil demand growth.


Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

[stoch]

Preliminary data indicates US jobs market remained tight in June


European indices remain on a slippery slope due to expectations of new covid restrictions. Intraday losses range from half to one percent. The June inflation release in the Eurozone did not come with a positive surprise for the Euro, inflation rose in line with expectations, which allows the ECB to take its time to raise interest rates.

US data ahead of Friday's labor market report indicate a likely positive surprise. The Conference Board's Consumer Optimism Index rose more than expected, with significantly more respondents from the previous month pointing to improved job opportunities and higher income.

The main indicator increased from 120 to 127.3 points, which is only slightly below the maximum reached before the pandemic. The average consumer optimism index over 20 years is 94.7 points, from this point of view the June reading is really encouraging. Interestingly, both the current conditions index and the expectations index rose, which sets the stage for extension of the positive trend in the next few months.

Before the NFP report, it is import to look at the details of the report that are related to the labor market. The share of respondents who believe that vacancies are plentiful (54.4%) minus the share of respondents who believe that it is difficult to find a job (10.9%) has reached its highest value since 2000:

The value and monthly dynamics of the indicator suggests that the demand for labor continued to grow at a decent pace in June. Surprisingly, this may negatively affect the payrolls indicator, since at the same time with the growing demand, there is a shortage of labor supply, which slows creation of jobs. Some workers see no reason to discontinue receiving government benefits and payments, some parents were forced to stay at home because some US schools still conduct remote studies. There is also a part the workers who lost their jobs and decided to retire as the stock market boosted their pension savings over the year. In general, there are several factors that are holding back the growth of labor supply, creating unusual tensions in the labor market, where employers must compete for workers.

Monthly growth in wages is likely to be stronger than forecasts, which should increase pressure on the Fed to raise rates and cut QE. Risks to the dollar and long-dated bond yields are skewed upside what could explain strong dollar performance this week and prevailing pressure in USD currency pairs with major opponents.


Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.