Euro Hampered by Italian Political Risk – Reuters
The euro struggled near five-month lows on Thursday as worries Italian populist parties might push for debt forgiveness from the European Central Bank triggered wider concerns about market disruption in the common currency region.
China Denounces Trade Unilateralism, Defends Free Trade – Reuters
China’s foreign minister on Wednesday took a swipe at the United States’ trade policy and defended international free trade on the basis of World Trade Organisation regulations.
UK’s Risk of Losing Euro Clearing After Brexit Eases – Reuters
The threat of clearing in euro denominated financial contracts being forcibly moved from London to the European Union after Brexit eased on Wednesday after EU lawmakers backed more detailed economic tests for relocation.
Hong Kong’s Overnight Currency Defence Costs US$1.2 Billion – South China Morning Post
The Hong Kong Monetary Authority intervened in the foreign currency market to defend the Hong Kong dollar for a second day this week on Wednesday, bringing its total purchases of the local currency since April to about HK$62.4 billion.
Turkish Central Bank Promises ‘Necessary Steps’ to Calm Lira – Financial Times (subscription)
Turkey’s central bank has moved to calm the market ructions shaking the lira, stating that “necessary steps” will be taken.
Brazil Holds Rates Unexpectedly Amid Currency Selloff – Reuters
Brazil’s central bank unexpectedly kept interest rates unchanged on Wednesday, contradicting widespread forecasts of a cut after a selloff in emerging markets drove the Brazilian real to a two-year low.
Oil Hits Highest Since Nov 2014 as Brent Edges Closer to $80 – Reuters
Oil prices hit their highest level since November 2014 on Thursday, with Brent crude creeping ever closer to $80 per barrel as supplies tighten and demand remains strong.
Bank of England Tipped to Raise Rates in Slowing Economy – Bloomberg
Slower than expected growth this year won’t stop the Bank of England from at least one interest rate increase.
Franklin Templeton Buys $2.25bn in Argentine Bonds – Financial Times (subscription)
Cash infusion seen as vote of confidence in Argentina after currency fall.
The Need for Clarity – Profit & Loss (subscription)
The latest unfair dismissal court case in the UK highlights the need for firms to provide more clarity for their FX desks – and they might want to warn staff about their use of language.