Spotlight shines on the euro

Justin Freeman
Spotlight on EUR/USD

Traders of the single European currency are likely to find themselves kept busy as trading gets underway on Tuesday.

A range of economic calendar events from various major European economies is scheduled for Tuesday morning.

German consumer price index information for June will be out at 6am GMT, and this is expected to show no year-on-year change from its previous position of 0.9%.

This predicted relative stability also looks apparent on a month-on-month level, with June’s figures expected to show no change from their previous position of 0.6% when they are released at the same time.

In Spain, consumer price index data for June is due out at 7am GMT.

Once again, this is forecast to remain stable, with no month-on-month change from its previous recording of half a percentage point.

However, the single currency – and hence the EUR/USD pair – is likely to face tougher challenges as Tuesday goes on.

At 8am GMT, for example, the European Central Bank’s bank lending survey (BLS) will be published.

Just an hour later at 9am GMT, there will be an economic sentiment survey for July from ZEW.

Texas Securities Board acts in forex case

A leading regional regulator in the US has announced that it has issued an emergency action to prevent a South African company from trading in the state.

Mirror Trading International PTY LTD, which is understood to be run by a man named Cornelius Johannes ‘Johan’ Steynberg, has been told by the Texas State Securities Board that it must cease and desist.

The scheme, which has been described as a multilevel marketing programme by the Board, is accused of having recruited marketers to sell scam pooled investments in both foreign exchange and bitcoin – and that some Texas residents were targeted.

On its website, the Board described the convoluted way in which Mirror Trading claims to trade.

“Investors allegedly purchase the products by transferring bitcoin to Mirror Trading,” it said.

“Mirror Trading purportedly pools bitcoin received from investors and transfers the cryptocurrencies to various unidentified forex brokers.”

“According to the order, the bitcoin is then supposedly somehow traded on the forex market using artificial intelligence, generating ‘conservatively’ projected profits of 10 percent per month,” it added.

In a statement, Commissioner Travis J. Iles said that it was not uncommon for schemes that appeared to offer speedy profits to not be following the law.

“These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors,” he said.

“Investors are often promised safe, lucrative returns; but promoters often fail to provide basic, required information to fully inform their prospective investors and satisfy their legal obligations,” he added.

Joe Rotunda, who is the director of enforcement at the Board’s agency, added that the allegations “may just be the tip of the iceberg”.

“Fraudulent multilevel marketing get-rich-quick schemes gain momentum and spread like wildfire through the internet,” he said.

“We brought this action to quickly stop the illegal scheme before it irreparably harms Texans,” he added.


Justin Freeman

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