GBP News 

Sterling crumbles after Cox says legal risk of Brexit deal remains unchanged

“May’s Brexit deal appears to be shot dead on arrival by Cox’s legal advice and there isn’t much for the pound to work with ahead of the vote later” reports forexlive.com. With overnight sterling implied volatility at its highest levels in 2.5 years, I reckon we could see a further drop in the pound later as May loses the vote.The only possible saving grace for the pound now is that lawmakers start touting up chances of a second referendum.This is where things start to get interesting because markets will have…

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News 

Trade, politics and changing rates views send Canadian dollar sliding

“The Canadian currency fell 0.35 percent to C$1.3349, extending Monday’s losses on expectations that the central bank was approaching a policy turning-point” writes unknown author for cnbc.com. Focus has turned to meetings at the European Central Bank and the Bank of Canada, with both institutions facing the need to address stuttering economic growth and a slowdown in world trade.The Canadian dollar slumped to nearly six-week lows on Tuesday, hit by a combination of trade troubles, resignations from Prime Minister Justin Trudeau’s cabinet and expectations the central bank could be on…

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Brokers GBP Markets News Stocks 

Lower Volumes and Offshore Brokers Competition: Q1 Sneak Peak

“The final quarter of 2018 was driven by massive stock market volatility and on multiple occasions caused Plus500 to upgrade its outlook” writes Victor Golovtchenko for financemagnates.com. While the uncertainty around Brexit still hasn’t dissipated, the FCA-regulated brokers who rely heavily on EU clients are still worried about the future.At the time, smaller brokers shared with Finance Magnates that the massive moves seen in the final quarter of last year have boosted revenues significantly.While volatility challenges are nothing new, the decreased leverage for EU retail clients is particularly impactful when…

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News Regulators 

A Fed pivot, born of volatility, missteps, and new economic reality

“GRAPHIC – How the Fed’s meeting minutes reflected changing views on interest rates: https://tmsnrt.rs/2TX9fC0 It was a conclusion hiding in plain sight” reports businessinsider.com. Over the next few weeks, the Fed eschewed subtlety for a more public acknowledgement that its view of economic reality had changed.Investors dumped stocks and bonds, fearing the Fed aimed to drive rates higher than they felt the economy could withstand.It was the beginning of weeks of volatility that led the Fed to recalibrate its message, with more than one misstep along the way.References to the…

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Markets News Stocks 

The stock market’s recent turbulence reminds one expert of the periods before the past 2 financial crises — here’s how he says investors should respond

“Buying some cheap protection now against the risk of US entering recession prematurely would make sense in our view,” Bokobza said” writes Joe Ciolli for businessinsider.com. And for that reason, the caution being stressed by the firm sits at odds with the market’s seemingly voracious risk appetite.It shows that past instances of elevated volatility were accompanied by the types of sudden economic contractions. Source: businessinsider.com

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News Stocks 

Wirecard shares rise on German short-selling ban

“Shares in Wirecard AG (WDI.XE) trade higher Monday morning after German financial regulator BaFin issued a ban on establishing new short positions in the payment-services provider, or increasing existing ones” writes Nathan Allen for marketwatch.com. BaFin said the negative reports triggered a significant increase in net short positions against Wirecard, which have increased volatility in the shares.”In the current situation, there is a risk that this uncertainty will increase and escalate into general market uncertainty,” the regulator said.The regulator said there was a risk that high volatility in the stock–caused…

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Crypto News 

JP Morgan creates first US-bank backed cryptocurrency

“JP Morgan is set to become the first US bank to launch its own cryptocurrency as it looks to find a new way of settling payments between its global clients” writes Hasan Chowdhury for telegraph.co.uk. The JPM Coin is a digital currency designed to represent the US dollar.It follows a recent trend of so-called stablecoins, which aim to minimise the volatility in price of cryptocurrencies by pegging the digital assets to a fiat currency. Source: telegraph.co.uk

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News Stocks 

Why momentum traded Amazon and Apple for Coca-Cola and Berkshire

“Momentum investors might not entirely agree with this allocation, but this particular momentum index is simply following its own rules, which determine its stock selection” writes Crystal Kim for marketwatch.com. It does its usual rebalance in May and November when it measures stocks’ momentum over the preceding six- and 12-month periods.BlackRock’s iShares directed Barron’s queries about the special rebalance to the index provider MSCI. MSCI did not respond to requests for comment.The index tracked by the iShares ETF conducted an ad hoc rebalance in January after a bout of extreme…

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Crypto News 

Bitcoin volatility tumbles to a 12-week low

“According to Buy Bitcoin Worldwide, the 30-day bitcoin volatility index stands at 2.41%, the lowest level since Nov. 19, 2018” writes Aaron Hankin for marketwatch.com. Bitcoin prices were mostly unchanged Thursday, extending a lull that has pushed volatility to its lowest level since mid-November.Read: A record number of people are gambling on blockchain — literally Providing critical information for the U.S. trading day.On Thursday, one bitcoin BTCUSD, -0.09%  was fetching $3,395.15, unchanged since Wednesday’s level at 5 p.m.Cryptocurrencies other than bitcoin, colloquially known as altcoins, traded marginally higher on Thursday. Source:…

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News Stocks 

Lululemon’s up double digits in the last year and the chart points to another huge rally

“To manage risk, Gordon is also putting a stop loss on if the $2.74 trade sees a 50 percent drawback to around $1.37” writes unknown author for cnbc.com. “I like the way the stock has recovered after that poor earnings report [in December],” said Gordon.”We’re going to pay $2.74 for a $10 spread risk so that means we’re going to risk $224 to potentially make $726.Gordon has an options trade to take advantage of the move he expects before Lululemon next reports earnings on March 26. Source: cnbc.com

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