Dollar Drop is Worst Since 2011 as Investors Rethink Fed Policy – Bloomberg
The dollar slumped the most since October 2011 after the Federal Reserve reduced projections for interest rate increases and expressed concern the dollar’s surge is weighing on exports and inflation.
Paying Most Since 2008 on Dollar Hedges Works as Currency Plunges –Bloomberg
Anyone wondering why you’d pay the highest prices since 2008 to hedge against declines in the dollar found out last week when the currency slid the most in more than three years.
ASIC’s Greg Medcraft Says FX Brokers are ‘Picking Off’ Australia – Sydney Morning Herald
Australia is being “picked off” by online foreign exchange brokers that are able to obtain a local licence and offer clients extremely high leverage of up to 500 times, the corporate watchdog says.
Should Brokers Impose a Limit on Forgiving Client Losses in the Event of Another Market Event? – Profit & Loss (subscription)
I fully expect other brokers to follow FXCM’s lead in imposing a ceiling on the losses the firm will forgive clients in the event of another event in markets, but how moral is such a practice?
Dark Shadow Cast Over Threadneedle Street – Financial News (subscription)
The Bank of England faces serious questions over whether its investigation of its involvement in FX market manipulation probed deep enough.
Yuan Extends Retreat After Biggest Weekly Advance in Seven Years –Bloomberg
China’s yuan had the biggest two-day drop since January as some investors judged excessive the currency’s biggest weekly advance in seven years.
Canada, China to Launch North America’s First Yuan Hub – The Globe and Mail(subscription)
Canada’s Finance Minister and China’s ambassador to Canada will officially inaugurate the opening of a Canadian offshore trading hub for the Chinese currency Monday, a move that will make transactions cheaper for companies doing business with the East Asian giant and could boost trade between the two countries.
NDF and Currency Options Activity Rises in January on US-Based SEFs –Forex Magnates
Trading volumes on Swap Execution Facilities rose on a month-on-month basis in January. The US regulated entities saw an uptake in overall volumes across its two currency instruments, NDFs and Options.
Circuit Breakers: Does FX Need a Kill Switch? – Euromoney
Foreign-exchange broker FXCM’s CEO calls for 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 (OTC) market such as FX.