Major currencies gained across the board against the dollar as the greenback weakened to a new 33-month low and the euro climbed further following Thursday’s meeting of the European Central Bank’s governing council.
- Dollar Halts Drop as Markets Digest Lack of ECB Intervention – Bloomberg
- Dollar Hits Lowest Level in More Than 2½ Years – Wall Street Journal (subscription)
The euro rose to a fresh 2½ year high as currency bulls judged the central bank’s concerns about the strengthening currency at Thursday’s policy meeting as lukewarm at best.
- Euro Further Above $1.20 on ECB’s Taper Pledge and ‘Lack of Panic’ – Financial Times (subscription)
- ECB’s Draghi Sends Euro on a Wild Ride – Wall Street Journal (subscription)
Britain’s pound resisted further losses against a broadly stronger euro as investors awaited the first big batch of monthly data on the pace of economic growth.
A recent surge in the value of the yuan has blindsided Wall Street and stands to complicate China’s efforts to simultaneously manage a slowdown in growth while deepening its ties to global markets.
A statistical analysis of the drivers of the dollar-yen exchange rate this year suggest that gold is the “principal” determinant, according to UniCredit strategist Vasileios Gkionakis.
France wants European Union regulators to have a veto over how Britain supervises UK-based clearing houses of euro denominated transactions after Brexit, EU sources said.
The Futures Industry Association has warned against plans by European Union lawmakers to force euro-denominated derivatives clearing into the bloc, noting that contracts must remain freely traded and cleared in order to preserve the euro’s status as a reserve currency.
The British finance industry urged the government to provide “early clarity” on whether contracts involving financial transactions will remain valid after Brexit.
The notion that higher interest rates were “normal” while current ones are “unnaturally” low is false.
State Street will pay $35 million to settle US claims that it overcharged customers using secret markups and failed to fully inform other clients about how its platform for trading Treasury securities worked.
The White House is considering more than a half-dozen candidates to be the next head of the Federal Reserve, including economists and business people, with a goal of filling out a depleted board with expertise ranging from financial regulation to community banking, according to three people familiar with the matter.
Nineteen foreign banks in the European Union will need to set up new holding companies so that regulators can scrutinise them more closely, an EU discussion paper says, mirroring steps taken by the United States.
Dealers want firmer guidance on whether technique to slash margin costs contravenes clearing mandate.
House lawmakers pressed Finra CEO Robert Cook on a host of concerns, including how fine money is spent, the regulator’s $1.6 billion reserve fund and executive pay.
The International Swaps and Derivatives Association (ISDA) has announced the launch of the latest version of the Standard Initial Margin Model (SIMM), which incorporates a number of enhancements to further develop the methodology.
LCH SwapAgent now has 14 dealers using its platform including Barclays, Citi, Credit Suisse, Goldman Sachs, Morgan Stanley and JP Morgan.
ECN provider Fortex and Commercial Network Services (CNS), an online service provider that hosts low latency algorithmic trading systems, have announced the release of an optical fibre cross connect between the companies’ facilities in the NY4 Equinix datacenter in New York.
Catherine Flax, formerly managing director, head of commodities, FX and local markets, Americas, at BNP Paribas, has joined financial advisory firm Pefin.
Jefferies continues to develop its exposure to the FX market space.
Asian currencies rallied against the dollar as investors took weakening of the greenback as a cue to buy into Asian markets, with the Chinese yuan hitting a near 21-month high.
The renminbi climbed to a 21-month high against the dollar after China’s central bank strengthened the currency’s trading band and the greenback languished at its weakest level since the start of 2015.
The Hong Kong dollar firmed suddenly to the strongest level against its US counterpart in three months after once again edging into the weak end of its permitted trading range.