The U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U.S. District Court for the Southern District of New York against Forex Capital Markets LLC (FXCM), charging FXCM with undercapitalization, failure to timely report its undercapitalization violation, and guaranteeing against customer losses. FXCM, with headquarters in New York, New York, is registered with the CFTC as a Retail Foreign Exchange Dealer (RFED).
On the daily chart of USDJPY we are observing a nice decline of a higher degree taking place, with price now trading in final wave 5. Because of a nice drop from 107 area, we believe blue wave 4 is completed and more weakness may be seen in weeks ahead.
Cable was very strong yesterday with that five wave bounce from 1.2866 low which means that new recovery has began. That said, be aware of a temporary retracement now from 1.3070 that we see it as a double zigzag with possible completion near 1.2950 area, at former wave four.
The U.S. Federal Reserve has pulled back its forecasts of tighter monetary actions as the global economy is slowing down much faster than anticipated. Economic shocks in China and the continuing saga of the Brexit vote have put pressure on other central banks to act to avoid the pull of deflation of their economies.
The U.S. dollar weakened today after U.S. retail sales were unexpectedly flat in July, while producer prices also unexpectedly fell in the month, raising concerns about the strength of third-quarter economic growth.