CCP Risk Debate Driven by Clearing Member Profits – Profit & Loss (free story)
Discussion over central counterparty clearing (CCP) risk has steadily intensified over the past year, but market sources suggest that the diminishing profitability of clearing members is the real reason why this subject is getting so much attention now.
Singapore Dollar Jumps After Central Bank Unexpectedly Keeps Policy Steady – Reuters
The Singapore dollar rallied on Tuesday, leading gains in Asian currencies, after the central bank surprised markets by holding monetary policy steady and expressed confidence in the trade-reliant economy’s growth outlook.
Euro Weakness Broader Than Drop Versus Dollar Amid Greek Angst – Bloomberg
Negotiations over the future of Greece’s financing are rankling foreign exchange traders, with evidence of their concern showing up in multiple currency pairs. The euro slipped for a seventh day against the dollar on Tuesday and tumbled to its weakest level against the yen since June 2013.
Dollar Drops Against Yen After PM Abe Advisor Says ¥120 Too Weak – Market Watch
The dollar was lower against the yen in Asian trade Tuesday, with comments by an adviser to Prime Minister Shinzo Abe keeping a lid on the greenback’s upward momentum.
Post-Election Standoff May Still Wrong-Foot Sterling Investors – Reuters
For British businesses concerned that May’s election could trigger big swings in sterling, the cost of protection has surged in the past month – and any protracted talks on forming a coalition government could push it higher still. Sterling hit a five-year low against the dollar this week while the price of currency options expiring immediately after the May 7 vote hit multi-year highs.
Russian Ruble Bounces Back to Become the World’s Best-Performing Currency – Russia Beyond The Headlines
Between early February and early April 2015, the Russian ruble gained 22.3% against key benchmarks, making it the world’s best-performing currency. Experts are not yet convinced that this impressive strengthening of the ruble will become a long-term trend.
Hedge Funds’ Bets on Strengthening Dollar Pay Off – Financial Times (subscription)
Hedge funds have enjoyed their best quarter relative to US equities in four years as big bets on the rise in the US dollar paid off for some of the world’s best known managers, helping the industry break years of mediocre returns.
Money Market Abandons Logic in Denmark After Currency Sinks – Bloomberg
The Danish krone is close to its weakest in 14 years and money market traders are predicting the central bank will need to raise rates in 2015 to defend its euro peg.
PBOC’s Reserves Decline by Record on Intervention, Euro’s Slide – Bloomberg
China’s foreign exchange reserves slid the most on record in the last three months, fuelling speculation the central bank sold holdings to support the yuan as money flowed out of the world’s second-largest economy.