DoJ Pushes for Foreign Exchange Deal with Five Banks in May – Financial Times (subscription)
The US Department of Justice is pushing for five banks, including JP Morgan Chase and Barclays, to resolve allegations they manipulated the foreign exchange markets in one mega settlement scheduled for mid-May, according to people familiar with the case.
No Evidence of Suspicious Behaviour Before RBA Rate Announcements, $A Moves: RBA – Sydney Morning Herald
The Reserve Bank of Australia (RBA) says authorities have found no evidence of suspicious behaviour that could have contributed to sharp movements in Australia’s dollar just seconds before the RBA’s interest rate decisions in February and March.
NDF Growth Challenged By Buy-Side Concerns, Product Competition – Euromoney
Non-deliverable forwards (NDFs) have experienced impressive growth in recent years, providing a solution to the problem of trading spot FX in many emerging markets where currencies are not deliverable. However, regulatory and liquidity concerns, combined with competing FX products, have moderated buy-side enthusiasm.
Hong Kong Buys $6.85 Billion in April to Defend Currency Peg – Bloomberg
Hong Kong’s de facto central bank bought US dollars for the second day in a row to maintain the local currency’s peg, taking this month’s purchases to $6.85 billion.
Emerging Market Central Banks: Doves into Hawks – Financial Times (subscription)
When it comes to monetary policy, 2015 has so far been the year of the “dovish” surprise. In the first quarter, more than 20 central banks around the world cut interest rates, many of them unexpectedly as far as investors were concerned.
Central Banks Prepare to Flood FX Markets with Euros – Reuters
Central banks keen to steer clear of negative-yielding assets in a rapidly depreciating currency could cut the foreign exchange reserves they hold in euros by a hundred billion dollars or more, analysts estimate.
Multinationals Expect RMB Transaction Volumes to Double in Five Years – Profit & Loss (free story)
More than six out of 10 of companies in Asia Pacific, Europe and the US expect renminbi (RMB) transaction volumes to more than double in the next five years, according to research by Allen & Overy.
Grexit and UK Election Déjà Vu for Unphased FX Markets – GlobalCapital (subscription)
Investors trading euro/dollar and cable options do not appear concerned about Greece’s potential eurozone exit or medium term effects of UK elections, according to strategists.