The NFA continues to stick it’s nose into the business of forex traders. The
antihedging rule is causing FXCM to modify their platform to eliminate
stop orders and
take profit orders.
The following is from FXCM:
How are FXCM clients affected?
The result is that forex traders will no longer have the ability to place stop-loss or limit orders. Nor will traders be able to modify or close trades from the 'Open Positions" window. This major new rule will go into effect after July 31, 2009. Therefore, any existing stop-loss and limit orders will be removed from FXCM LLC accounts after July 31.
This means, your best bet is to start closing orders near the end of July and wait until this update rolls over. FXCM is again offering clients the chance to transfer their accounts to FXCM-UK to escape the regulation. I am personally starting to consider that option.
FXCM states that they are instituting a new type of order that should replace stops and limits called OCO.
This is all very interesting. Next week I might expect the headline “Government to regulate breathing”.
US Nonfarm
Payrolls declined by 467,000 while unemployment ticked up to 9.5 percent. The US dollar was virtually unchanged. It continues to range against major currencies.
Well looking at these numbers, it’s a good thing that the government did
stress tests for the banks. Come to think of it, it looks like we are now higher than the average of 8.9 percent. It seems that we are well on schedule to pass that 10.3 percent mark by 2010.
This is scary stuff. The most scary part being that the government is undershooting the seriousness of it so far.
So in case you work for the government, let me sum up with problem for you in one sentence.
Too much money being paid to too few people.
Perhaps if some of these company execs weren’t making 500 times what their employees made, that would be a start. They might have money left over to pay people to work.
It doesn’t look like things will be changing anytime soon. While the speed of the slowdown has decreased, the slowdown continues none the less. There really is no positive spinning that. There is a lot of bad news still waiting out there to be uncovered. I wouldn’t expect these employment reports to change any time soon.
The ECB will issue it’s interest rate decision for July this week, as well as the Bank of England next week. Do they really matter anymore? My answer is no. The BOE and ECB along with many other central banks have already cut interest rates to the bone. The only decision that would really make any waves in the markets would be a move towards raising interest rates. I don’t think we will be seeing that any time soon.
Read more...In Goldman Sachs Ruler of the World I talked about the way Goldman Sachs seemed to be so suspiciously lucky with their timing and the way regulations (or the lack therof) seem to always work in their favor.
Read more...
