Bank of England Fired FX Chief for Series of Misjudgements: Carney – Reuters
The Bank of England dismissed its former chief foreign exchange dealer last year because of a series of inappropriate actions including the sharing of a confidential Bank document, BoE Governor Mark Carney said this morning.
Barclays Says Wants to Resolve FX Probes as Quickly as Possible – Reuters
Barclays wants to settle investigations into the alleged manipulation of foreign exchange trading with as many authorities as possible, as quickly as possible, its finance director said.
Bank of England FX Investigation Too Narrow, Says MP – The Guardian
The Bank of England has come under attack for failing to properly investigate its role in the rigging of foreign exchange markets. In a report commissioned by Jesse Norman, the Conservative MP and a member of the Treasury select committee, a leading UK barrister said the Bank set “very low tests” for its inquiry into the scandal.
EU Court to Rule on UK Challenge to ECB’s Clearing Policy – Risk Magazine (subscription)
A three-year legal dispute between the UK government and the European Central Bank over clearing house oversight is set to conclude on Wednesday, when the General Court of the European Union delivers its ruling. If the ruling goes against the UK, it would leave intact an ECB policy that calls for clearers of euro-denominated products to be incorporated in the euro zone.
Bill Gross Says Currency War Risks Slowing Global Growth – Bloomberg
Bill Gross said a global race to devalue currencies in an “undeclared” war risks slowing growth instead of stimulating it. Low to negative interest rates hamper the functioning of capital markets and prompt investors to take on higher risk to boost returns, making the financial system more vulnerable.
Parker FX Index Up 2.71% in January – Profit & Loss
Currency hedge funds in the Parker FX Index reported an aggregate gain for the seventh straight month in January amid a wave of volatility during the month that the Swiss National Bank removed its cap on the franc’s value against the euro.
Grexit Risk Rising Despite Cash Lifeline -Investor Survey – Reuters
The chances of Greece leaving the euro zone in the next 12 months are the highest since late 2012 even though Athens’s financial lifeline has been extended, a survey of investors based mainly in Germany showed on Tuesday.
Dollar Hit by Japan Govt Adviser’s Yen Comment, Drags Index Lower – Reuters
The dollar eased from an 11-year peak against a basket of currencies today, hit by losses against the yen after an economic adviser to Japanese Prime Minister Shinzo Abe said the greenback could not sustain more gains.
Australian Dollar Strengthened Ahead of RBA Rate Decision – Wall Street Journal (subscription)
The Australian dollar strengthened sharply against the US dollar on Tuesday, just seconds before Australia’s central bank surprised some investors by holding rates steady.
China’s Forex Chief Says Yuan to Stay Stable in Long Term – Reuters
The yuan’s exchange rate will remain stable in the long run, and two-way trade will be maintained in the currency market, the head of FX strategy at China’s central bank said today, sounding a reassuring note in the face of a recent slide in the yuan’s value due to increasing outflows from the world’s second-largest economy.
Bank of England Looks at Digital Currencies for Central Banks – Profit & Loss
The Bank of England has released a paper examining the potential for central banks to utilise digital currencies. The paper suggests that central banks could make use of cryptocurrency by using it for interbank settlement or making it available to a wider range of banks and non-bank financial institutions.
Join FXPA at FIA Boca
Attending FIA Boca next week? Please join the membership of the Foreign Exchange Professionals Association (FXPA) for a Meet & Greet session at the FIA Boca conference. Representatives from the FXPA will be in the Lounge Area adjacent to Bar Luna from 5:30-6:30 on Tuesday, 10 March. Please rsvp to email@example.com