BNY Mellon Agrees $714 Million FX Fine – Profit & Loss
Bank of New York Mellon says it has “resolved substantially” all of the foreign exchange-related legal actions currently pending against the company at a cost of $714 million.
Dovish Fed Hands Euro Best Weekly Gains in 18 Months – Reuters
The euro inched up against the dollar on Friday and was on track for its best weekly performance in 18 months, boosted by a sell-off in the greenback after the US Federal sounded a cautious tone on interest rates.
Forex Market Erupts on Central Bank Moves – Wall Street journal (subscription)
Central banks have lit a fuse under the foreign exchange market. In the latest episode, the euro surged more than 4% against the buck, its biggest jump in a single day in 15 years, according to Deutsche Bank. Early on Thursday, the European currency resumed its slide.
Beijing Helps to Drive the Yuan Higher – Market Watch
China’s yuan surged higher for a fourth day, on track for its best week since a revaluation a decade ago, as Beijing steps in to the markets to drive the currency higher and kick out speculators betting on losses as the economy deteriorates.
Russia’s Putin Calls for Regional Currency Union – Reuters
President Vladimir Putin proposed on Friday creating a regional currency union with Belarus and Kazakhstan, Russia’s partners in a political and economic union made up of former Soviet republics.
SNB Balance Sheet Could Not Have Coped with Peg Defence, Says Jordan – Central Banking (subscription)
The Swiss National Bank’s decision to abandon its exchange rate ceiling was essential to avoid imposing intolerable losses on the central bank, chairman Thomas Jordan said Thursday. Trying to defend the Swiss franc-euro peg would have caused an “uncontrollable expansion” of the SNB’s balance sheet, Jordan said during a press conference.
BOJ Kuroda Says No Sign of “Currency War” Brewing in World – Reuters
Bank of Japan Governor Haruhiko Kuroda on Friday dismissed views that the massive monetary stimulus programmes deployed by advanced economies were triggering a “currency war” of competitive exchange-rate devaluations.
Asia’s Conundrum: How to Balance Growth and Stability – Wall Street Journal (subscription)
Southeast Asian finance ministers meeting Friday grappled with how to counter spill-over effects from US monetary policy and volatile financial markets, while bolstering their faltering economies.
Investment Banks to Shrink by 10-15% More as Regulation Bites: Study – Reuters
Investment banks are likely to shrink by another 10 to 15% in the next two years as they cut back their trading desks due to the impact of tougher regulations. “More strategic selection is required, particularly in FICC (fixed income, currencies and commodities) and overseas markets,” a report says, adding banks also needed to shift to a more technology-driven model.
Circuit Breakers: Does FX Need a Kill Switch? – Euromoney
Foreign exchange broker FXCM’s CEO has called for a wider adoption of circuit breakers on FX platforms to prevent another Swiss franc shocker as seen on Black Thursday, but critics question whether it is the right solution and even suitable for an over-the-counter market such as FX.