Euro Gains vs Dollar as Traders Eye Fed for Interest Rate Clues – Reuters

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Top Headlines

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.

 

 

Regulatory News

US Swaps Market Resists Futures Model – Financial Times (subscription)
The $700 trillion global swaps market is proving resistant to attempts to remould it in the shape of its listed futures cousin, casting doubt over post-financial crisis reform efforts.

US CFTC Fines ICE Unit $3 Million Over Data Reporting Violations – Reuters
US derivatives regulators on Monday ordered a unit of Intercontinental Exchange to pay $3 million to settle civil charges that it submitted inaccurate and incomplete data reports over a 20-month period.

Regulation Impacting Swaps Market: Isda – FOW Magazine (subscription)
Electronic trading of swaps and swaps clearing grew significantly last year as these markets are increasingly impacted by the regulatory push to tighten up the over­-the-counter markets, said the top swaps trade body. The International Swaps and Derivatives Association said trading swaps electronically on the new breed of swap execution facilities rose last year to 52.4% of the market from 19%.

FCA Sets Out ‘Near-Final Rules’ for Senior Banker Regime – Profit & Loss
The UK’s financial watchdog has taken its next steps in addressing individual responsibility and accountability in the banking sector, outlining strict new rules that will make it easier for firms and regulators to hold individuals to account.

Four Key Market Reforms Needed Now: Richard Baker, President and CEO of the Managed Funds Association – CNBC
We believe four key investor-driven principles are critical to preserving and strengthening the resiliency of our markets and investor protections today – and for the next generation.

Broker Deal Prompts CFTC Commissioner to Re-Examine His Conflicts – Bloomberg
US Commodity Futures Trading Commission member J. Christopher Giancarlo, whose industry ties are being examined by lawmakers, has sought ethics advice on whether he needs to stay away from regulating an additional company – R.J. O’Brien & Associates, a major futures brokerage that announced this week it was buying a London subsidiary of Giancarlo’s former employer.

 

 

Company News

Phillip Futures Targets Expansion Into Retail FX – Profit & Loss
Phillip Futures is planning to expand its services into the FX market, according to its director and CEO, Lynette Lim.

INTL FCStone Partners With TradAir – Profit & Loss
INTL FCStone has partnered with TradAir to help power its e-FX global offering.  The two firms will work to offer clients an end-to-end e-FX solution with flexible technology and optimised liquidity to service their markets and clients.

Moscow Exchange Launches Renminbi-Rouble Future – FOW Magazine (subscription)
The Moscow Exchange launched on Tuesday a future based on the Chinese renminbi­/rouble following substantial increases in volumes in the FX spot market. The exchange said it took the decision after volumes in Chinese renminbi jumped 700% in 2014, driving investor demand for hedging their trades.

 

 

Market Savvy  

The Euro and the Risk of a Squeeze
Wall Street Journal
The speed of the euro’s decline is starting to put seasoned market-watchers on edge. Monday, the currency hit another 12-year low, an almost daily occurrence right now, with the rate touching $1.0457. This is marvellous news for the funds that have bet on a slide.

 

 

Press Releases

Credit Suisse Joins FXSpotStream’s Price Aggregation Service, Expanding Liquidity Providers to Ten Global Banks
FXSpotStream, a subsidiary of LiquidityMatch, has revealed that Credit Suisse has opted to join its Price Aggregation Service, providing liquidity to FXSpotStream’s clients, the tenth such globally recognised bank.

Gain Capital Receives Shareholder Approval for Acquisition of City Index Limited
Gain Capital Holdings announced today that its common shareholders have overwhelmingly approved the acquisition of City Index Limited.

DTCC Opens a New Office in Manila to Support Growth in the Region
DTCC has opened a new office in Metro Manila to support its growing client community and expanded operations across Asia.

Thomson Reuters Sets New Compliance Standards for Instant Messaging in Financial Markets
Thomson Reuters has today launched new controls in its instant messaging service to improve the ease with which financial markets professionals can communicate with their counterparties whilst helping ensure the highest standards of compliance.

 

 

Industry Events