Meet the team behind Exclusive Capital

We would like to say thank you to Game Changers Magazine for featuring our team on the Cover and Inner Pages Article and sharing the story of Exclusive Capital’s growing team.

The Exclusive Capital vision started over 3 years ago by Chief Executive Officer, Viktor Madarasz and Managing Director, Lambros Lambrou setting out to create a high-end multi-asset investment services firm and offering Liquidity, Technology, Brokerage, Portfolio Management, and Institutional Trading services to its clients from around the world.

From the outset, the vision was clear from management that to grow the company forward they would need high-caliber executives to fill senior positions, and recently the Exclusive Capital executive team has expanded with multiple industry veterans joining the company in the key positions.

Read more about our teams expansion and newest member addition in senior-level positions in the Game Changers Magazine August Issue.

Euro retests yearly lows of $1,17 on stronger US dollar and Covid worries

Euro continues its bearish downward momentum towards yearly lows of $1,17 mark amid growing concerns over “Delta” variant spread in the Eurozone, coupled with the elevating US dollar and Treasury yields.

As the super-contagious “Delta” covid variant began to spread across Europe, investors worry that the economic conditions in Eurozone could be worsened going into this winter, which pressures the growth-sensitive Euro and benefits the safe-haven US dollar.

EUR/USD falls to a key support level for the pair as a break below March’s 2021 lows of $1,17 could trigger a sell-off towards November’s 2020 swing lows of $1,16.  

EUR/USD pair, 4-hour chart

The US dollar extends its broad-based post-Nonfarm Payrolls report’s rally into this week, with the DXY-dollar index which predominantly weighted in Euros, climbing to as high as 93,20 mark, posting its highest level since early April 2021.

The 10-year US Treasury yield advanced to 1,37% on Wednesday morning, following six straight sessions of gains amid the stronger-than-expected NFP job’s report, and the hawkish comments from Federal Reserve’s members.

Investors expect that the bullish NFP jobs data for July would be one more step towards the Federal Reserve’s target of full employment after the pandemic, to start tapering its massive pandemic-led monetary stimulus programs and began hiking the zero interest rates.

Brent oil falls 3% as the spread of “Delta” variant deteriorates demand outlook

Crude oil prices have started the week suffering heavy losses as the increasing spread of the highly contagious “Delta” covid variant around the world continues to cloud the outlook for the global oil demand recovery after the pandemic.

The international oil benchmark Brent slid as much as 4% this morning, falling below $68 per barrel, extending last week’s huge losses of 6%, which was its biggest weekly loss since early March 2021.

Brent crude oil, 1-hour chart

Similar downward picture in the WTI contract as well, with the price tumbling 4% towards the $65/barrel support level.

Oil prices have been falling since the start of August despite the growing supply concerns after the escalation of geopolitical tensions in the oil-rich Middle East. Since last month, there have been two attacks on tankers in the international waters next to the Strait of Hormuz choke point in the Persian Gulf, and several airstrikes from the Israeli air force against Iranian-backed militias in Syria and Lebanon.

Meanwhile, the elevating US dollar has been also weighing on the dollar-denominated crude oil prices. Greenback hits a 4-month high against major currencies after a stronger-than-expected US Nonfarm payrolls job report on Friday and the hawkish comments from Federal Reserve’s bankers for a potential monetary tapering.

 
“Delta” variant spreads in top oil consumer countries:

Energy traders have been under pressure after China, the world’s second top oil consumer has imposed the first travel restrictions this year in almost 50 cities across the country to curb the spread of the “Delta” covid variant.

The U.S., the world’s first top oil consumer has seen its daily new covid cases surpassing 100,000 infections per day, mainly in States such as Florida, and California with lower vaccination rates.

Japan, a global leader in manufacturing and exports, has also expanded emergency restrictions in the populated capital of Tokyo and nearby areas, threatening petroleum demand.

The reimposition of covid-led social restrictions has been a negative catalyst for oil prices since China, U.S., and Japan consume together nearly 30 million barrels per day or 30% of total global oil demand, and it reflects the general picture across the oil-thirsty developing societies.

In Australia, about 15 million people, or 60% of the country’s population, are under a strict lockdown, while virus infections hit daily records in other Asian economic “tigers” such as Thailand, Indonesia, and Malaysia.

US dollar and Treasury yields soar ahead of Nonfarm Payrolls (NFP) report

The world’s reserve currency and the US Treasury yields are bouncing back on Friday’s mid-day trading session ahead of the release of the most-expected monthly job data, the Non-Farm Payroll (NFP) report for July.


All eyes on Non-Farm Payroll (NFP) report:

The US Labour Department is due to release its July Nonfarm Payrolls report at 1:30 p.m. GMT, with economists estimating the US economy to have added 845k jobs in the previous month.

Investors are looking whether strong NFP data could make the case for faster Fed’s monetary policy tightening since the employment data is a very crucial economic indicator to the central bank’s policy decisions.

The prospect for the Fed to start raising its zero-interest rates amid elevating inflationary pressure, and to begin tapering its bond-buying program of $120 billion worth of bonds per month, is positive for US dollar since the central bank would start printing fewer greenbacks.

Forex traders turned bullish on US dollar after the hawkish comments by Fed’s Vice Chair Richard Clarida and other central bankers during the week, giving a boost to the US 10-year Treasury yields to climb above 1,25%.


Market reaction:

US dollar rises across the forex board, with the DXY-US dollar index against major peers soaring to near 92,50 level, hitting a one-week high.

EUR/USD pair, 1-hour chart

The strengthening greenback adds downward pressuring to the EUR/USD pair which retests the $1,18 key psychological support level, after it failed to breach the strong resistance level of $1,19 in previous days.

Other major forex pairs have moved in that direction, with growth-sensitive Pound Sterling falling back to $1,39 support level, while the safe-haven Japanese Yen losing some ground to ¥109,85.

Greenback is also getting stronger against commodities-sensitive currencies such as Canadian, Australian, and New Zealand dollars. The USD/CAD trades to near $1,25, well off the recent top of $1,28 despite the while antipodean currencies hoover lower to $0,735 and $0,705 respectively, following the falling crude oil and industrial metal prices amid the outbreak of the highly contagious “Delta” covid variant around the world.

Vrasidas Neofytou analysis on “Delta” variant, crude oil, and geopolitical games in the Middle East featured in “Economy Today” August’s issue

The increasing spread of the highly contagious “Delta” covid variant in top-consuming countries threatens the fuel demand recovery at a time when WTI and Brent oil prices surge to pre-pandemic levels of $70 per barrel. The unexpected clash between the biggest Arab economies and long-time close allies, Saudi Arabia and the United Arab Emirates within OPEC in July, has raised concerns over the political and energy stability in the oil-rich Middle East.

Read our Head of Investment Research Vrasidas Neofytou detailed analysis on the hot topic in “Economy Today” magazines August’s issue*.

*Article available in Greek.

Bitcoin tops $42,000 despite China’s crackdown on the crypto market

Cryptocurrencies extend recent gains, with the price of Bitcoin breaking above $42,000 level over the weekend, while the second-largest cryptocurrency Ethereum hovers around $2,700 level for the first time since early June.

The price of the world’s largest digital currency Bitcoin continues its upward momentum after briefly dipping below the $30,000 level on July 20, 2021. Bitcoin topped $42,600 on Sunday morning before retreated to near $40,000 key support level.

BTC/USD, 1-hour chart

Bitcoin gained more than 15% over July, and it’s up 40% year-to-date, even though it’s off around 40% from its all-time intraday high of $65,000 on April 14, 2021.

Crypto prices took a lift last week following a conference called “The B-word” between Tesla CEO Elon Musk, CEO of Twitter Jack Dorsey, and CEO and founder of Ark Invest, Cathie Wood, discussing Bitcoin and its future.

Risk appetite for cryptos increased after the comments from Elon Musk saying that Tesla would start accepting Bitcoin payments for its electric vehicles after the Bitcoin Mining Council agreed on a standard to report energy usage by crypto miners.

That’s a positive catalyst for Bitcoin and the crypto ecosystem since Tesla stopped accepting the digital currency as payment due to its energy usage back in June, triggering a sell-off in the whole crypto market.

The world’s famous investor Cathie Wood, agreed with Elon Musk; adding that Bitcoin would be more environmentally friendly than gold mining or the traditional financial sector.

China’s crackdown on cryptocurrencies:

More than 80% of the globe’s Bitcoin mining (computing power) or 30% of the global crypto network’s processing power have been suspended the last few weeks since China ramped up a crackdown on mining operations and transactions of cryptocurrencies, as part of a campaign across the country.

Chinese regulators have tightened scrutiny of digital currency trading to avoid systemic financial risks from spreading into the society and illegal activities such as money laundering, while People’s Bank of China (PBC), the country’s central bank has enhanced oversight and restrictions on cryptocurrency transaction.

The PBC has also asked all platform-based companies to increase risk management measures following regulations to prohibit the trading and speculation relating to cryptocurrencies.

As a result, many crypto miners have started selling their mining equipment or moving them overseas that adopt friendly policies like Canada, Russia, and South America.