Top Headlines
Daily FX Volumes Fall Back to $4.64 Trillion in April: CLS – Reuters
Average daily volumes in the global foreign exchange market fell back below $5 trillion a day in April, data from FX settlement bank CLS shows.
Deutsche’s Former FX Head Says Transformation is Coming – Euromoney
The headline results of Euromoney’s 2015 foreign exchange survey show the leading banks have been remarkably consistent, despite the upheavals in the sector. But, beneath the surface there are changes that will transform the competitive landscape of the industry. Deeper analysis of the survey results demonstrates that’s already starting to happen.
Libor trial: Libor fixed with £336,000 in Bribes – Prosecution – Risk.net (subscription)
Former UBS and Citigroup trader Tom Hayes asked for Libor submissions to be doctored in hundreds of messages to his brokers in exchange for hundreds of thousands of pounds in “bribes”, London’s Southwark Crown Court heard on May 28.
Find Me a Prime – FTSE Global Markets
Tougher capital standards, lower liquidity and eroding margins have kept up the pressure on major prime-brokerage players, compelling many to cut loose less-profitable, higher-risk fund clients. The steep currency losses incurred following the Swiss National Bank’s decision to remove its three-year-old Swiss franc-euro cap last January only accelerated the rate of rationalisation, as Citi, Deutsche Bank and other PBs subsequently raised minimum thresholds in an effort to weed out smaller, riskier participants such as FX and fixed income arbitrage, among others, leaving many fund clients without a home.
Wall Street Executives Strike Subdued Tone on Trading Revenues – Wall Street Journal (subscription)
Within FICC, activity has slowed versus the seasonally strong first quarter, but should compare favourably to a weak year-ago level, driven by rates and FX.
Star Managers Battered By Rocky Ride in Yields, Currencies – Reuters
Some of the biggest names in the investment world have been whipsawed by the recent rise in global yields and the strength in the euro against the dollar, with investors bracing for more sharp moves later this year stemming from central bank actions.
Private-Bank Clients Mull FX Strategies – Euromoney
Opinion is divided on the extent to which private-bank clients should be encouraged to consider FX as an asset class and to look at strategies to generate returns from currency volatility. In any case, most private-bank clients are dollar bulls.
Greek Exit From Euro is ‘a Potential’, Says Lagarde – Financial Times (subscription)
The head of the International Monetary Fund has acknowledged that Greece could leave the euro, while insisting that this would not mark the end of the single currency.
Asia Currencies Have Worst Month Since November on Fed Rate Bets – Bloomberg
Asian currencies completed their biggest monthly drop since November, led by South Korea’s won, on signs the Federal Reserve is moving closer to raising interest rates.
Only Three Major Currencies Outdid the US Dollar in May – Financial Times (subscription)
May was a mighty month for the US currency, as it was propelled higher by a sense that the US Federal Reserve is inching closer to its first interest rate hike since 2006. But three currencies managed to squeak just ahead of the dollar, despite its wild ride: the Turkish lira, Mexican peso and the Chinese renminbi. |
