Join FXPA Today at FIA Boca
Attending FIA Boca today? Please join the membership of the Foreign Exchange Professionals Association (FXPA) for a Meet & Greet session at the FIA Boca conference. Representatives from the FXPA will be in the Lounge Area adjacent to Bar Luna from 5:30pm-6:30pm today. Please rsvp to email@example.com
Euro Falls Further Towards Dollar Parity – Financial Times
The euro is under $1.08 for the first time in almost 12 years and European stocks are slipping as momentum from a rebound in US indices continues to fade, while eurozone sovereign borrowing costs are also falling.
Move Over Greece! Kiwi Baby Formula Threat Spurs Euro, Yen Slump – Bloomberg
Threatening letters sent to New Zealand’s dairy producers set off a currency cascade on Tuesday, driving the euro and the yen to the weakest levels in at least seven years.
Dollar Hits Fresh Multi-Year Highs Against Euro, Yen – MarketWatch
The dollar hit fresh multi-year highs against both the euro and the yen during Asian trade Tuesday, in a sign of how monetary and economic conditions in the US, the eurozone and Japan are continuing to diverge.
Cost of Hedging Sterling Exposure Jumps as UK Election Nears – Reuters
The cost of hedging against sharp swings in the British pound rose sharply on Tuesday, as investors priced in greater uncertainty associated with the parliamentary election in May.
Brazil Real Leads Global Declines as Court Blocks Rousseff Probe – Bloomberg
Brazil’s real led global currency declines as a Supreme Court ruling threatened to heighten tension between President Dilma Rousseff and lawmakers over the administration’s plan to cut deficits.
Top Five US Swaps Clearers Have 73% of the Business – Risk Magazine (subscription)
Total domination by the top firms, diverging ambitions, shrinking excess collateral – a full year’s data is now available on US client clearing businesses, and it reveals some worrying trends. The over-the-counter derivatives clearing business is maturing – 2014 was the first full year in which the US mandate was in place – but the data suggests there is still some way to go.
FX Fee Hike After Swiss Move Sparks Execs’ Concern – Pensions & Investments
Consultants are advising asset owners to take a closer look at what they pay their global custodians for foreign exchange trading after some banks responded to the increase in the value of the Swiss franc by hiking FX costs.
Corporates Eye Cross-Currency Swaps as Euribor Sinks – Risk Magazine (subscription)
The European Central Bank cut its benchmark interest rate to 0.05% in September 2014, tempting some corporates to swap their debt into euros and cut their debt service costs, but some see hidden dangers. Since the current period of low interest rates began, much of the discussion has centred on the difficulties the buy side faces in generating yield for investors. For corporate borrowers, though, it creates the potential for windfall savings in their debt service costs.
Mexican Peso Tumbles to Weakest Level Since 1993 Redenomination – Bloomberg
Mexico’s peso fell to a record low on speculation interest rate increases by the US Federal Reserve will diminish the appeal of higher-yielding emerging market assets.
Turkish PM, Ministers to Meet with Central Bank Chief Over Lira Plunge – Reuters
Turkish Prime Minister Ahmet Davutoglu will hold a meeting with nine cabinet ministers and Central Bank Governor Erdem Basci on Tuesday to discuss recent sharp falls in the lira currency, sources at his office say.