Euro Gains vs Dollar as Traders Eye Fed for Interest Rate Clues – Reuters
The euro rose for a second day against the dollar on Tuesday as investors awaited the start of a two-day US Federal Reserve policy meeting that will test expectations of a mid-2015 rise in US interest rates.
Yuan in Hong Kong Jumps Most in Three Years as Euro Strengthens – Bloomberg
The yuan traded in Hong Kong rose the most in three years as the euro rallied and after Chinese Premier Li Keqiang vowed to safeguard economic growth.
Currency Swings Cost US Corporates $18.66 Billion in Q4: Study – Reuters
Foreign exchange swings cost North American corporates $18.66 billion in revenue in the fourth quarter, according to a report by currency risk management consulting firm FiREapps.
QE Has Failed to Do Anything for Japan: Gkionakis – Bloomberg
UniCredit Bank head of global FX strategy Vasileios Gkionakis discusses the Bank of Japan’s decision to keep record stimulus steady, the current fed meeting in the US and the upcoming UK elections.
Grand Central: Can The Fed Go It Alone? – Wall Street Journal (subscription)
Federal Reserve officials are likely this week to clear the way for raising short-term interest rates from near zero later this year. This would appear to represent another step on the path back to a more “normal” monetary policy, coming after their decision last year to end their latest bond-buying program. But looking at central bank policies around the world, it’s clear that seven years after the financial crisis, a return to normal looks further and further away.
Lagarde Warns World to Brace for Repeat of Fed’s ‘Taper Tantrum’ – Bloomberg
Emerging markets need to prepare for capital flight if investors are surprised by the timing or pace of policy changes in developed economies, the IMF’s managing director Christine Lagarde said a day before the US is expected to signal a shift in stance.
Sterling Bounce Offers Temporary Reprieve – Financial Times (subscription)
Sterling recovered some of the ground lost against the dollar ahead of Wednesday’s annual Budget statement, but sentiment in the currency markets was weighted towards further depreciation of the pound as the UK election looms.
Ex-National Australia Bank Dealer Jailed for Insider Trading – Bloomberg
A former National Australia Bank trader and a statistics bureau employee were jailed Tuesday after making AUD 7 million profit in the nation’s biggest insider-trading case. The pair profited from foreign exchange trades made by one based on sensitive economic data handed to him by the other.
Hedge Funds Win as Euro Falls – Wall Street Journal (subscription)
The euro’s plunge has given a much-needed lift to hedge funds that have been repeatedly frustrated by the world’s central banks. A bevy of multi-billion-dollar funds have gained as much as 9% this year as their managers bet against the euro, riding the European Central Bank’s push to weaken the currency and bolster Europe’s economy.