All posts by Julie Ros

Hedge Funds Eavesdrop on Vital Bank of England Briefings – The Times

Following inquiries by The Times, the Bank has discovered that one of its suppliers has been sending an audio feed of its press conferences to high-speed traders who hope to profit by acting on the governor’s comments before the rest of the world.

• Bank of England Admits its Press Briefings were Hacked – Financial Times

Pound Extends Losses as Concern Over No-Deal Brexit Increases – Bloomberg 

The pound fell against all of its major peers as renewed concern the UK may be headed for a no-deal Brexit spurred traders to dump the currency.

• Thank You for Playing the Forex – Financial Times
• Ratings Agencies Take UK Off Downgrade Watch After Johnson’s Win – Reuters

Johnson Takes Tough New Line on Brexit Trade Talks – The Times

Boris Johnson will redraw his Brexit bill this week to make it illegal for parliament to extend the transition period – a move that will put him in direct conflict with Brussels.

• Pound Falls as Johnson Moves to Block Any Further Brexit Delay – Bloomberg 
• Probability of No-Deal Brexit Has Decreased, Mark Carney Says – Bloomberg

US and China Reach a Trade Agreement, But Some Key Details are Still Unclear – CNBC

After the US and China announced progress on a trade agreement, a critical point of the deal remains in question: agricultural purchases.

• US Exports to China to Nearly Double in ‘Totally Done’ Trade Deal: Lighthizer – Reuters
• Mnuchin: Trade Deal with China to Boost Global Economy – Reuters
• China Top Diplomat Says China-US Trade Deal Good News For All – Reuters
• China Faces Tough Task in Pledge to Boost US Imports – Nikkei Asian Review

Pound Soars as Johnson Scores Landslide British Election Win – Reuters

The pound surged more than 2% on Thursday as Prime Minister Boris Johnson’s Conservative Party won a resounding election victory that markets believe makes an orderly British exit from the European Union all but certain.

• Investors Cut Pound Weakness and Rate Cut Bets After Johnson’s UK Election Win – Reuters
• British Vote Is Likely to Bring Brexit, but Not End Brexit Divisions – Wall Street Journal
• Brexit Will Now Happen but Boris Johnson’s Win Puts Future of the UK In Doubt – Financial Times
• The Dream is Dead: Johnson Election Triumph Breaks UK ‘Remainer’ Hearts – Reuters
• FX Liquidity Holds Up Well as UK Exit Poll Surprises – Profit & Loss
• Sterling Jumps on UK Poll – More to Come? – Profit & Loss

Sterling Derivative Markets Flash Red as British Election Gets Underway – Reuters

Traders rushed to the foreign exchange derivative markets on Thursday to protect their exposure to the British pound in case of a surprise election outcome.

• UK General Election 2019: Nation Faces ‘Historic’ Choice: Live Updates – The Guardian
• United Kingdom Votes to Decide the Fate of Brexit, Again – Reuters

UK’s Johnson Now Less Certain of Election Victory: YouGov – Reuters

Britain’s election race has tightened markedly over the past two weeks and Prime Minister Boris Johnson is now likely to win only a modest majority in Thursday’s vote, according to a closely watched forecast.

• Nightmare Before Christmas? Traders Dig in for Long British Election Night – Reuters
• What Would a Hung Parliament Mean for the UK and Brexit? – The Times

BIS Report Highlights Shift in FX Trading Styles – Profit & Loss

The latest Bank for International Settlements Quarterly Review provides execution method data relating to the recent Triennial Survey of FX Turnover and finds that while e-ratios generally are stable, there have been some significant shifts in the channels handling the volume.

Mystery Solved? BIS Report Studies Triennial FX Survey Data – Profit & Loss

When the Bank for International Settlements published this year’s version, there was no little surprise at it finding there was $6.6 trillion traded every day, a new report, however, throws more light on that number, but doesn’t quite answer all the questions.

Why the Global Trading System is About to Grind to a Halt – Australian Financial Review

The WTO is breaking down and if there’s no US-China trade deal in the next two weeks, there may not be one until after America’s 2020 presidential elections.