Banks are Poised to Profit from Forex Tumult – Wall Street Journal(subscription)
As US banks closed out the first quarter, analysts and investors said the turbulence in foreign exchange markets triggered by central bank actions should have boosted profits in the trading units of the country’s biggest financial firms.
Widespread Market Support for Global FX Committees’ Market Guidelines –Profit & Loss (free story)
Market participants have gotten behind the recently published high-level “global preamble” on best practice and market conduct for the FX industry.
The FX Disruptors: Why Russell Investment Built a Buy-Side FX Platform –Traders Magazine
After the foreign exchange rate manipulation scandal, Russell Investments envisions buy-side firms banding together to trade FX among themselves. Michael DuCharme and Joe Hoffman are leading the charge.
Dollar Falls Before Jobs Data as Currency Faces April Headwind – Bloomberg
The dollar fell versus all but two of its 16 major peers before nonfarm payrolls data due Friday amid signs growth in the world’s largest economy may have lost momentum.
A New Approach to Hedging EM Currencies – Profit & Loss (free story)
Emerging markets currencies are getting a lot of attention lately, as the market waits with bated breath for the US Federal Reserve to begin unwinding quantitative easing. Market volatility may be just around the corner, with EM currencies expected to be the ones hardest hit.
Bond Traders Find Answer to Broken Market: Switch to Currencies –Bloomberg
Just because it’s getting harder to trade bonds doesn’t mean that investors are sitting on their hands. Instead, they’re turning to currencies, which are largely bought and sold electronically rather than through dealers, according to Joyce Chang, the global head of research at JP Morgan Chase in New York.
Momentum Builds to Label Chinese Yuan a Reserve Currency – Wall Street Journal (subscription)
US opposition could still upend Beijing’s attempt to put yuan in same league as dollar. China is gaining support from key US allies in its push to gain reserve-currency status for the yuan, but opposition from the Obama administration threatens to upend Beijing’s bid to flex more muscle in the global economy.
Aussie Trails the Field in Currency Race – Financial Times (subscription)
Australians have a fondness for nicknames. Milko (for milkman), and umpie (for umpire) may lack imagination, but bluey (for a red-haired person) at least suggests an affinity for sarcasm. The latest target is the local currency, which has fallen so much that some are now calling it the Australian peso.
Polish Central Bank Says Proposal on FX Debt Swaps “Fatal” for Banks –Reuters
Poland’s central bank governor has criticised a regulator’s proposal to let holders of mortgages denominated in Swiss francs convert the debt into zlotys at an historical exchange rate, saying it would be “fatal” for lenders.
Rousseff Says Brazil Won’t Intervene in Currency as Real Tumbles –Bloomberg
Brazil will let the real fluctuate freely and doesn’t intend to intervene in the market to defend the currency, President Dilma Rousseff said.