December 2022

ICE Futures Singapore Monthly Report

Gain a deeper understanding of emerging market trends, risks and opportunities with bitcoin, FX, equity and energy markets analysis. The Research Team at Traddictiv shares their views in this monthly report, including statistics for active or passive traders and hedgers.
MACRO COMMENTARY
Bitcoin reached around $18,400 during December and ended the year below $17,000 in uneventful trading. Authorities in the United States requested the extradition of former FTX chief executive Sam Bankman-Fried from the Bahamas, where he has been held having been arrested after US prosecutors filed criminal charges against him.
  • Corporates holding bitcoin continued to hold the cryptocurrency, including MicroStrategy, which added to its bitcoin holdings, purchasing about 2,395 bitcoins for $42.8 million between 1st November and 21st December, according to a filing with the Securities and Exchange Commission (SEC). Total holdings amount to 132,500 bitcoins worth approximately $2.25 billion at current prices, compared with MicroStrategy’s acquisition cost of $4 billion.
  • In the United States, the New York Department of Financial Services has issued guidance for banks looking to engage in cryptocurrency-related activities to seek and obtain prior approval beforehand, and those that already engage in such activities must notify the agency. Federal banking regulators, such as the United States Federal Reserve, and the Office of the Comptroller of the Currency, have issued similar guidance requiring banks they oversee to notify them and obtain approval before partaking in crypto activities.
The U.S. Dollar Index ® (USDX) lost 2.18% of its value in December to close the month and end 2022 at 103.27, down for the third consecutive month. Even with the weakness shown during the past three months the U.S. Dollar Index ® closed 2022 with a 8.02% gain, the strongest performance since 2015.
  • Nonfarm Payrolls unexpectedly rose with 263.000 new jobs created during November, although this fell shy of October’s upwardly revised figures of 284,000 jobs. The USDX closed the day at 104.50 with a loss of 0.28%.
  • Core Inflation (all items less food and energy) eased to record an increase of 6.0% for the 12-month ending November, down from 6.3% in October. The USDX closed the day at 103.94 with a loss of 0.95%.
  • The Fed raised interest rates by 50 basis points at December’s meeting as the benchmark rate range reached 4.25% - 4.5%, the highest level in 15 years. The USDX closed the day at 103.74 with a loss of 0.24%.
The South Korean Won gained 3.06% against the U.S. Dollar in December to close at 1261.87 KRW.
  • S&P Global Manufacturing PMI data unexpectedly rose to post an increase to 49.0 points for November, significantly above expectations of 47.7 and data released for October at 48.2.
  • Industrial Production continued to contract with data published for 12-month ending November at -3.7% the largest drop since August 2020.
  • Consumer Price Index (CPI) for all items 12-month ending December showed inflation remained unchanged after reaching a 7-month low at 5.0% recorded for November.
The Singapore Dollar closed the month stronger against the U.S Dollar at $1.3400 with a gain of 1.55%.
  • Manufacturing PMI data released continued to show a slight contraction in manufacturing activity even though there was a slight uplift on the prior month as data released for November showed 49.8 against 49.7 for October.
  • Consumer Price Index (CPI) data for all items 12-month ending November remained unchanged at 6.7%, albeit slightly above market expectations of 6.45%.
  • Industrial Production data showed a further drop in manufacturing output for 12-month ending November as manufacturing dropped to -3.2%.

The Chinese Yuan Renminbi gained 1.78% against the U.S. Dollar to close December at 6.9190 CNY to the U.S. Dollar.
  • Consumer Price Index (CPI) ) eased to an annual rate of 1.6% for 12-month ending November.
  • Retail Sales figures for 12-month ending November showed a significant decline of 5.9%.
  • The NBS Manufacturing PMI data released showed a further decline in manufacturing output for December with a drop to 47.0 against 49.2 expected and 48.0 recorded for November. Non-Manufacturing PMI data for December showed a sharp decline as figures released 41.6 for December against 46.7 previously and significantly below expectations of 51.4.
The ICE Asia Tech 30 Index (ATI) ended the month lower after a strong November. Chinese component stocks carried the month with gains offsetting the weakness in stocks from the other regions included in the index. 
  • Chinese component stocks gained with Bilibili, Inc. adding to the prior months' gains by 47.3%, Kuaishou Technology was up by 25.6%, and Tencent was higher by 16.3%.
  • Taiwan stock components closed lower with MediaTek Inc falling by 14.7%, United Microelectronics Corp. down 11.1%, Taiwan Semiconductor lower by 8.5%, and Delta Electronics falling 5.1%. Hon Hai Precision Industry closed flat around 0.6% lower.
  • For the Japanese index components, the largest fall was seen in Tokyo Electron Ltd. down by 13.8%, and Murata Manufacturing which fell 11.7%. Close behind all lower by around 11% were Z Holding, Sony Group Corporation, and Canon Inc.
  • Korean component stocks were lower with Samsung SDI down 18.9%, SK Hynix falling 11.8%, and Samsung Electronics lower by 11.1%. Kakao fell 5.9% and Naver Corp was down by 5.1%.
ICE Brent Crude plunged in the first week of December to $75.64 from $89.18 and spent the remainder of the month recovering to close the month at $85.91. Initially, expectations of weaker global growth impacted by higher energy costs had challenged any move toward higher prices. However, prices eventually did rise as China announced the easing of Covid-19 restrictions.
  • The International Monetary Fund (IMF) economic outlook for 2023 could be tougher than in 2022, according to IMF Managing Director Kristalina Georgieva, given the main engines of global growth - the United States, Europe, and China - were all slowing simultaneously. Continued weak factory data from China, the world's largest crude importer and second-largest oil consumer, could continue to weigh on prices. The Caixin Manufacturing Purchasing Managers' Index fell to 49.0 in December from 49.4 in November. The index has stayed below the 50-point mark that separates growth from contraction for five straight months.
  • Russia responded to the oil embargo initiated by the European Union by banning the sale of Russian oil to countries participating in the price cap which will be in effect from 1st February to 1st July. The countries joining the EU included G7 countries and Australia. The EU led embargo on Russian seaborne crude took effect on Monday 5th December with the price cap set at $60 per barrel.
MONTHLY CHANGE
Source: Source: ICE Connect, ~30 Days

Important information: The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
MARKET FOCUS
SOUTH KOREAN WON - USDKRW | SWD
DAILY TREND: DOWN
The USDKRW was range bound during early December after the significant drop from the last two days of November trading. The pair closed the week at 1297.87 within a weekly support area of 1315.30 – 1295.39 with a loss of 2.74%.

On 5th December, USDKRW breached the lower level of the support area to test the lower boundary of the Daily Bollinger Bands where the pair found a deeper pocket of buyers. The demand for the U.S. Dollar returned and the pair rebounded to close the day positive. The pair traded higher until 7th December where the USDKRW met resistance at the midpoint of the Daily Bollinger Bands. The bears regained control and the USDKRW edged lower throughout the remainder of the week to close at 1303.84 on 9th December with a modest gain of 0.46%.

After a slight uplift during Monday 12th December trading the bearish momentum returned and the USDKRW closed lower on 13th before it found support near the lower boundary of the Daily Bollinger Bands. From there the pair rallied for two consecutive trading days as the bulls’ regained control to close up 2.28% during this period at 1318.50 to test the midpoint of the Daily Bollinger Bands. The bears returned on the final day of trading for the week and the pair dropped to close the day down at 1309.46 with a loss of 0.68%. The pair closed the week ending 16th December with a gain of 0.43% back within the boundaries of the weekly support area.

The bearish momentum continued into the following week and the USDKRW traded lower for three consecutive days as the demand for the U.S. Dollar continued to decrease to the advantage of South Korean Won bulls. After a short reversal on 22nd December trading where support was found at the lower boundary of the Daily Bollinger Bands the bears returned. The USDKRW closed the week below the weekly support area at 1315.30 - 1295.39 with a loss of 2.29% at 1279.53. This drop also broke and closed below a critical area on the weekly chart and a downtrend confirmed.

The final week of December trading the liquidity was notoriously thin. The pair gradually traded lower and hugged the lower boundary of the Daily Bollinger Bands to close the week and end December on the Monthly 20 EMA at 1261.87. A loss of 1.38% for the week.

The downtrend in the USDKRW continued on the daily timeframe and after a break of a critical level reverted to a downtrend in a weekly timeframe.

The USDKRW closed the month at 1261.87 with a loss of 3.06%, the third consecutive monthly gain for the South Korean Won.
SINGAPORE DOLLAR - USDSGD | SGD
DAILY TREND: DOWN
The bearish momentum during the last two trading days in November continued into the first day of December trading and the USDSGD closed down at 1.3534 with a loss of 0.56%. The bears maintained control on the 2nd December and the pair dropped. The pair closed down at 1.3520 which was the final trading day of the week to record a loss for the week at 1.65%.

On 5th December the bears drove the pair lower until support was found just below the lower boundary of the Daily Bollinger Bands at 1.3437. Here there was a pocket of support evident on a daily timeframe at 1.3466 – 1.3434 which also coincided with the lower boundary of the Weekly Bollinger Bands. The bulls returned and the pair closed higher for two straight days. The upside momentum reversed as the bears took charge on the 7th December and the market traded lower for two days.

After a day of indecision on the 9th December the USDSGD closed the week at 1.3538 with a gain of 0.15%.

The following week the bulls returned although they struggled to maintain overall control. The pair dropped back into the daily area of support on 13th December and reached a low of 1.3434 before buyers stepped in. However whilst the pair did not trade lower the USDSGD struggled to lift. The pair traded within the support area until 15th December when after it dropped to a low of 1.3438 the bulls returned and the USDSGD closed above the area at 1.3601 with a gain of 1% on the day. The pair approached the midpoint of the Daily Bollinger Bands the bears returned and the pair pulled back on 16th December. The USDSGD closed the week with a gain of 0.44% at 1.3587.

The bearish sentiment continued into the following week and the pair traded lower until the USDSGD reached the support area once more, again the bulls returned and drove the pair higher. However, the demand for the U.S. Dollar was not enough for the pair to reach the midpoint of the Daily Bollinger Bands before the sellers returned.

The pair closed the week at 1.3503 with a loss 0.61% taking out the prior gains made in the previous two weeks.

On 26th December after an initial strong move up the pair found weakness as it pierced the midpoint of the Daily Bollinger Bands and dropped. The bearish momentum continued throughout the majority of the final week of December trading.

The USDSGD closed the week with a loss of 0.87% at 1.3400.

The downtrend in the USDSGD continued on the daily and weekly timeframes.

The USDSGD closed the month with a loss of 1.55% at 1.3400 to record a third consecutive monthly gain the Singapore Dollar has made against the U.S. Dollar.
UPCOMING HIGH IMPACT EVENTS
CHINESE YUAN RENMINBI - USDCNH | CNH
DAILY TREND: DOWN
The USDCNH dropped during early December trading as the bearish momentum from late November continued. The pair closed the week at 7.0160 with a loss of 2.65% down at the midpoint of the Weekly Bollinger Bands for the first time since April 2022. This represented the strongest the Yuan had traded against the U.S. Dollar since then.

The bearish momentum continued into the following trading week and the USDCNH traded lower to break and close below a daily area of support at 7.0257 - 6.9907 which showed a lot of strength when tested mid-November. After breaking through support the pair traded sideways throughout the remainder of the week as neither the bulls nor the bears could establish and maintain overall control.

The USDCNH ended the trading week on 9th December with a loss of 0.54% at 6.9696.

The sideways movement continued throughout trading the following week. The USDCNH failed to reach the high (7.0077) or the low (6.9303) of the prior week and whilst the strongest bullish day of the week posted a gain of 0.71%, the pair failed to reach the high set earlier in the week before it pulled back.

The USDCNH ended the trading week on 22nd December with a gain of 0.16% and closed at 6.9754.

The following week the bulls and the bears continued to struggle to take and maintain overall control although the pair slowly edged higher throughout the week. The USDCNH eventually tested the midpoint of the Daily Bollinger Bands where there was an abundance of sellers. This caused the pair to pull back on the final trading day of the week to post a small loss for the day of 0.11%.

Overall, the USDCNH closed the trading week with a gain of 0.42% to close at 6.9992.

The bearish momentum gathered pace into the final week of trading as the pair posted two consecutive losing days for the first part of the week with a loss of 0.41% during this period. The bulls however returned mid-week and the pair rallied to close up 0.42% on 28th December wiping out the losses from earlier in the week. The bullish momentum ended as the bears returned on 29th December and the pair dropped heavily during the last two trading days of the week, down 1.05% over this period.

The USDCNH closed the final trading week of the year at 6.9190 with a loss of 1.08%.

The downtrend in the USDCNH continued on the daily and weekly timeframes.

The USDCNH closed the month at 6.9190, with a loss of 1.78% as the Yuan continued to gain strength against the U.S. Dollar.
  • No major events listed



Source: ICE Connect, FXStreet Economic Calendar
  • No major events listed
  • Wed 11 Jan CPI (Dec)
  • Fri 20 Jan PBoC Interest Rate Decision
  • Fri 20 Jan Gross Domestic Product (Q4)
  • Fri 20 Jan Retail Sales (Dec)
  • Tue 31 Jan NBS–Manufacturing & Non–Manufacturing PMI (Jan)
U.S. DOLLAR INDEX ® FOCUS (DAILY TREND: DOWN)
INDEX WEIGHTING: EUR 57.6% | JPY 13.6% | GBP 11.9% | CAD 9.1% | SEK 4.2% | CHF 3.6%
The bearish momentum from the last trading session in November continued into early December trading, as the demand for the U.S. Dollar continued to fall. The move to the downside was exacerbated by poor ISM Manufacturing PMI data released for November. The announcement showed manufacturing output continued to decline, recording  a reading of 49.0 points, falling short of expectations of 49.8 and below the previous month's release at 50.2. This was the first contraction in manufacturing activity since May 2020. The U.S. Dollar Index ® closed the first day of December with a loss of 0.83% at 104.69.

Trading on the 2nd December was a rollercoaster as Nonfarm Payroll data was released. The announcement came with 263,000 new jobs created during November. which exceeded market expectations of 200,000. This however was a drop on the revised numbers issued which reported a gain of 284,000 (revised from 261,00) and the lowest reported for 2022 (after revisions). The unemployment rate remained steady at 3.7% and wages continued to rise with average hourly earnings increasing by 0.6% in November.

The U.S. Dollar Index ® rallied to make a high of the day at 105.58 before selling pressure returned and the market reversed as the bears gained control. The U.S. Dollar Index ® reached an area of support at 104.00 - 103.42 where buyers stepped in and the market closed the day with a loss of 0.28% at 104.50.

The U.S. Dollar Index ® closed the trading week ending 2nd December with a loss of 1.53% at 104.50.

The demand for the U.S. Dollar returned on 5th December after the market took a positive bounce from the daily support area. The bullish move was also aided by the ISM Service PMI data released for November. The data brought welcomed news as it recorded 56.5 against expectations of 53.1 and a gain on the prior month announcement of 54.4 (the lowest value recorded in over two years). The U.S. Dollar Index ® closed the day at 105.24 with a gain of 0.77%.

The bullish momentum continued into trading on 6th December where the U.S. Dollar Index ® had another positive close with a 0.43% gain at 105.54. The momentum to the upside however was reversed after the market reached a high of 105.80 on 7th December which fell within the boundaries of a 4-hour resistance area refined to 105.39 - 105.86 when the bears returned and drove the market lower. The U.S. Dollar Index ® closed trading down at 105.06 with a loss of 0.48% eliminating the prior day's gain.

With the bears back in control, the U.S. Dollar Index ® traded lower during trading on 8th December and the market closed down with a loss of 0.45% at 104.76.

The market had no clear direction on the last trading day of the week even though the Michigan Consumer Sentiment Index published above expected figures at 59.1 against expectations at 53.3 and data released in October at 56.8. The U.S. Dollar Index ® reached a high of 105.20 and a low of 104.41 on the day but ultimately the U.S. Dollar Index ® settled with a close at 104.80 and a modest gain of 0.03%.

The U.S. Dollar Index ® closed the week of 9th December at 104.80 with a gain of 0.35%.

The bulls returned on Monday 12th December and the U.S. Dollar Index ® traded higher although failed to close above the prior day’s high and closed at 105.10 with a gain of 0.24%.

The latest inflation figures released on 13th December showed the pace of inflation slowed for a fifth consecutive month as Consumer Price Index (CPI) data for all items 12-month ending November announced prices rose by 7.1% falling from 7.7% in October. This represented the lowest 12-month increase since December 2021.

The Core inflation rate, which represents all items excluding food and energy, softened to 6.0% over the 12-month ending November period which was slightly below expectations of 6.1% and the prior 12-month ending October at 6.3%.

The U.S. Dollar Index ® made a high for the day at 105.09, when selling pressure returned and the bears took control to send the market back into the daily area of support which was tested earlier in the month. The area held and after reaching a low of 103.53, the U.S. Dollar bulls returned and the U.S. Dollar Index ® closed the day at 103.94, just below the lower boundary of the Daily Bollinger Bands with a loss of 0.95%.

As inflation is set to play a key role in interest rate decisions throughout 2023, the ICE U.S. Dollar Information Expectation Index Family is a great tool to help plan for the future.

The chart below provides the historical Index setting over the past year:


Historical chart of the ICE U.S. Dollar Inflation Expectation Indexes
On 14th December the Federal Reserve announced a 50 basis points (bps) rate hike, to raise the benchmark rate to a range of 4.25% to 4.5%. The tough monetary policy stance continued to tackle high inflation even though there has been some easing in recent months. The Fed opted for a less aggressive rise, breaking the run of 75 bps rises announced at recent meetings (the past four). The expectation is that rates will remain high with further increases at a softer pace throughout 2023 although not all members agree on the future median rate. It is also likely that no reductions will be planned until 2024. The U.S. Dollar Index ® struggled on this news and the demand for the U.S. Dollar dropped as money out of the safe haven into other assets, although the bulls managed to bring the market back off the lows of 103.40. The U.S. Dollar Index ® closed at 103.74 with a loss of 0.24% still within the daily area of support 104.00 - 103.42.

The U.S. Dollar Index ® rallied out of the support area on 15th December as the bulls regained control, even negative Retail Sales data did not deter the bulls when they returned. Data published showed a drop in retail sales by the most seen in almost a year as November data announced a decrease in sales of 0.6%, significantly below the general consensus of a decline of 0.1% and considerably down on the 1.3% increase published for the month ending October. Nonetheless the U.S. Dollar Index ® climbed to reach a small pocket of resistance on the 4-hour timeframe at 104.83 - 105.09 where the market dropped slightly to close the day up at 104.53 with a gain of 0.89%.

The bullish momentum continued into the following trading day on 16th December and the market again tested the resistance area. Ultimately, the U.S. Dollar Index ® closed the day up with a gain of 0.19% at 104.66.

Overall, even with the last two positive trading days the U.S. Dollar Index ® closed the week of 16th December with a loss of 0.18% at 104.66.

On Monday 19th December after an initial drop during the Asian session the demand for the U.S. Dollar returned after it reached a low of 103.77. This demand was found within the daily support area and the U.S. Dollar Index ® rallied. The U.S. Dollar Index ® closed the day at 104.34 with a modest loss of 0.06%.

The bears returned on 20th December and the U.S. Dollar Index ® dropped throughout the majority of the day to close down at 103.61 with a loss of 0.73, again the daily area of support at 104.00 - 103.42 held.

The bulls continued to hold their ground and the U.S. Dollar Index ® edged higher during the following trading day to close positive with a gain of 0.21% at 103.85.

On 22nd December GDP data was announced which brought welcomed news as the U.S. economy expanded by an annualized 3.2% for quarter three, exceeding expectations at 2.9% and the preliminary value 2.9% announced the previous month. The U.S. Dollar Index ® closed the day up at 104.13 with a gain of 0.32%.

Data released on 23rd December for Durable Goods Orders for November showed a sharp drop in orders by 2.1%, a significant contrast to the figures published for October with a growth of 0.7% (downwardly revised from 1.0%) and significantly worse than market expectations of a decline of 0.6%. This had little impact on the direction of the market after release.

Nondefense Capital Goods Orders ex. Aircraft also released on 23rd December showed a drop in orders as  data published an increase of 0.2%, whilst it came out above market expectations of 0.% it fell short of the downwardly revised data released for October of 0.3% (revised from 0.7%), again little impact at the time of release. The U.S. Dollar Index ® closed the day with a loss of 0.16% at 104.01.

The U.S. Dollar Index ® closed the week of 23rd December with a loss of 0.38% at 104.01.

During the final week of December trading the U.S. Dollar bulls drove the market higher during the early part of the week to close positive on 27th December at 103.89 with a gain of 0.06% and on 28th December at 104.18 with a gain of 0.17%. The U.S. Dollar Index ® however struggled to even reach the prior week's high and climb out of the support area sufficiently before the bears returned.

The bears regained control during the final two trading days of the month and the U.S. Dollar Index ® dropped back into the daily area of support, this time there were insufficient buyers to drive the market higher as the demand for the U.S. Dollar weakened. The area broke and the U.S. Dollar Index ® closed below on the final day of December trading to close at 103.27 down 0.36% on the day. The U.S. Dollar Index ® closed the final week of December trading with a loss of 0.55%.

The U.S. Dollar Index ® continued in a downtrend on both the daily and weekly timeframes.

The U.S. Dollar Index ® closed the month with a loss of 2.18% at 103.27 to post a third consecutive losing month. Even with the significant loss over the past three months, the U.S. Dollar Index ® ended 2022 with a gain of 8.02%.
UPCOMING HIGH IMPACT EVENTS

  • Wed 4 Jan ISM Manufacturing PMI (Dec)
  • Wed 4 Jan FOMC Minutes
  • Thr 5 Jan ADP Employment Change (Dec)
  • Fri 6 Jan Nonfarm Payrolls (Dec)
  • Fri 6 Jan ISM Services PMI (Dec)
  • Thr 12 Jan Consumer Price Index (Dec)
  • Fri 13 Jan Michigan Consumer Sentiment (Jan) PREL
  • Tue 17 Jan Retail Sales Control Group (Dec)
  • Wed 18 Jan Retail Sales (Dec)
  • Thr 26 Jan Gross Domestic Product Annualized (Q4) PREL
  • Thr 26 Jan Durable Goods Orders (Dec)
  • Thr 26 Jan Nondefense Capital Goods Orders ex. Aircraft (Dec)
CORRELATIONS

The charts identify price turning points between U.S. Dollar Index ®, Brent Crude Oil (BRN), and Bitcoin (XBT) which could be used to identify periods during which prices of each of the markets appear positively or negatively correlated.
ICE BRENT CRUDE OIL (BRN): NEGATIVE (SINCE SEPTEMBER 2022)
Source: ICE Connect
NYSE® BITCOIN INDEX (XBT): NEGATIVE (SINCE JANUARY 2022)
ICE ASIA TECH 30 INDEX - ICEAT30 | ATI
DAILY TREND: DOWN
ATI held the November move higher and ranged between 2,950 and 3,200 for most of December, as gains in component stocks in one region offset falls in another.

ATI closed the month lower at $3,023 with a -3.1% change.

Index Composition: 37% China, 23% Japan, 23% Taiwan and 17% South Korea
ICE BRENT CRUDE OIL - BRN | BM
DAILY TREND: DOWN
ICE Brent Crude traded lower to $75.64 from the high set early in the month at $89.18.

Weak global growth pushed prices lower as high energy costs remained a concern. However, prices recovered on the announcement of easing Covid-19 restrictions by China’s authorities which had impacted their economic outlook.

ICE Brent Crude closed the month at $85.91 with a -1.1% change.

UPCOMING HIGH IMPACT EVENTS
NYSE BITCOIN INDEX® - XBT | BMC
DAILY TREND: DOWN
Bitcoin reached around $18,500 in the early part of the month and drifted lower as the year came to a close. Few catalyst were present to push the cryptocurrency down lower or indicate that the low was in.

XBT closed the month modestly lower at $16,574 with a -3.1% change.
  • Wed 11 Jan China CPI (Dec)
  • Fri 20 Jan Retail Sales (Dec)
  • Tue 31 Jan China Non-Manufacturing PMI (Jan)
Source: ICE Connect, FXStreet Economic Calendar
  • Wed 1 Feb OPEC Joint Ministerial Monitoring Committee Meeting
  • Sun 4 Jun 35th OPEC and non-OPEC Ministerial Meeting
  • Spring 2024 bitcoin halving event 
ICE ASIA TECH 30 INDEX CORRELATIONS
The charts identify price turning points between the ICE Asia Tech 30 Index, South Korea’s KOSPI Composite Index (KOSPI) and Thailand’s SET Index (SET) which could be used to identify periods during which prices of each of the markets appear positively or negatively correlated.
KOSPI COMPOSITE INDEX (KOSPI): POSITIVE
Source: ICE Connect
THAILAND SET INDEX (SET): POSITIVE
PRODUCT HIGHLIGHT: MINI ONSHORE RENMINBI/US DOLLAR FUTURES
KEY ATTRIBUTES

Mini Onshore Renminbi/US Dollar Futures contract with contract size of 100,000 yuan value is cash-settled. The reduced product size allows clients to optimize their capital exposure allocation and flexibility to utilize financial leverage across multiple products giving portfolio diversification opportunities to the client.

The futures contract was launched December 2019 on ICE Singapore allowing Asian and global investors an additional alternative to the deliverable futures contract, which are both offered in an established safe, secure and compliant environment for the trading of bitcoin.

Brokers offering this product include KGI Futures, Orient Futures Singapore and Phillip Nova.
Source: ICE Connect
MONTHLY EDUCATIONAL BITES
Terminology and concepts of the financial markets and futures.
What is Fundamental Analysis?
Fundamental analysis is a method of determining a market’s “real value” or "fair market" value through the collection and examination of financial and economic information. Information gathered may include financial metrics which identify business drivers of the market, and could involve financial modeling of the market.

Fundamental analysts search for markets that are currently trading at prices that are higher or lower than what is expected to be their fair market value. If the fair market value is calculated to be higher than the market price, the market is deemed to be undervalued and could be considered to be bought. Conversely, if the fair market value is calculated to be lower than the market price, the market is deemed to be overvalued and could be considered to be sold.
 
What is Technical Analysis? Technical analysis is a method employed to evaluate a market and identify trading opportunities with a focus on inputs that include price and/or volume. Various financially based calculations and statistical models are commonly employed to derive price trends and patterns based upon which trading decisions are made.
 
Technical analysts believe past trading activity and price changes in a market could be valuable indicators of a market’s future price movements.
Educational resources are available and provided by Traddictiv®.
RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS
Common application of financial market instruments for managing risk and opportunities.

Portfolio Diversification
Portfolio diversification is the process of investing your money in different asset classes and securities in order to minimize the overall risk of the portfolio.

For both corporate and individual investors, having access to markets that enable the building of a diversified portfolio is an important consideration when managing futures-focused accounts.

Similar to managing risk, the market to trade would be a key variable to clearly state and support with reasons for trading or investing.  Reasons for selecting one market over another could include price volatility, liquidity, daily volume traded, size of the minimum price increment, and value of the minimum price increment. Comparing these variables between markets will help decide the suitability and/or risk of each.

For example, the parameters for a price-driven strategy may be designed to be applied to any market whether it be index equity futures or forex futures.  However, the signals for entry may not always trigger if a trader were just to focus on a single index equity futures such as the Micro MSCI Europe Index futures.

Having access to other futures markets, such as the Mini Onshore Renminbi/US Dollar Futures, can introduce both a foreign currency and an Asian element to a portfolio.  This allows for the creation of a diversified portfolio with varying entry and exit points, or the ability for more trading oriented investors, increased opportunities to execute price driven strategies more often across a range of futures markets.
Limitations
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To retail investors: Futures contracts based on bitcoin may pose specific risks. Such risks may arise from greater volatility in prices resulting from a range of factors. Those risks could in turn affect financial outcomes associated with maintaining required margins or any losses at final contract settlement.
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