Nearly 8% wiped off nation’s currency following corruption allegations.
Renewed pressure on the dollar helped the pound to pick up, with sterling recovering most of the losses sustained in a sudden sharp fall yesterday evening.
While it is unclear what drove the sharp drop, it marked the third such event for the pound since October 7.
The dollar traded above six-month lows against a basket of six major peers, having gained some reprieve as solid US economic data helped temper a sell-off triggered by political tumult in Washington.
- Dollar Rebounds, Brazilian Real Plunges as Politics Dominates – Wall Street Journal (subscription)
- What Investors Are Saying About the Political Turmoil in Brazil – Bloomberg
The Japanese yen is the standout performer in Asian trade, in an otherwise mixed day for other major currencies.
China has an insurance policy against a full-scale market meltdown: the daily currency fixing.
But technical factors not very supportive of EUR/SEK shorting trade.
Decision on prized business expected to have far-reaching consequences for markets.
- FIA Warns on Euro Clearing – Markets Media
- Brussels to Back Euro Clearing Relocation After Brexit, Warns Euronext – Financial Times (subscription)
Following his retirement from Citi, where he spent nearly 30 years and most recently served as global head of G10 FX, James Bindler, reflected at Forex Network London about the changes that he’s observed in the industry.
The Trump administration took the idea of breaking up big banks off the table, with Treasury Secretary Steven Mnuchin telling a congressional panel that isn’t what officials have in mind in reviewing the line between commercial- and investment-banking activities.
President Donald Trump has selected a candidate to be permanent head of a key Wall Street regulator, Treasury Secretary Steven Mnuchin said.
France is shooting down the possibility of relocating Europe’s top financial regulator to Frankfurt from London after Brexit, an early sign of infighting over the spoils of Britain’s departure from the European Union.
A New York-based broker-dealer has asked the Securities and Exchange Commission (SEC) to propose rules to cover blockchain-based assets.
Market sources tell Profit & Loss that Standard Chartered Bank has seen two departures from its G10 FX trading ranks, just weeks after four other traders in the e-FX and NDF team were reported to have left.
Goldman’s fixed income business struggled in the past two quarters, with the FX pulled out as an area of particular weakness.
FX platform posts EBITDA of £5.6 million, representing annual rise of £4.2 million.
Bitcoin is well-entrenched as the preferred payment for cybercriminals like the WannaCry hackers who have hit more than 300,000 computers over the past week, but cryptocurrencies offering more anonymity are threatening to displace it.
Most emerging Asian currencies trod water, as wariness about political turmoil in Washington continued to dent risk appetites.
India’s rupee tumbled the most since June last year as local shares joined a global selloff triggered by concern over political turmoil in the US and Brazil.
The Canadian dollar was little changed against its US counterpart, holding this week’s gains as higher oil prices offset broader gains for the greenback.