Euro Falls to Nine-Year Low Amid Greece Woes – Financial Times(subscription)
The euro briefly sunk to a nine-year low against the dollar on Monday on the back of a disputed report that Germany was prepared to allow Greece to quit the currency bloc and more hints the European Central Bank is preparing to buy government bonds.
A New Fix Era – Profit & Loss (subscription)
As WM strives to alter its fixing methodology in line with the recommendations of the FSB’s FX Benchmark Group, in a Squawkbox exclusive, FXBG co-chairs Guy Debelle and Paul Fisher answer Colin Lambert’s questions over the recommendations.
Samaras Warns of Euro Exit Risk as Greek Campaign Starts – Bloomberg
Greece’s political parties embarked on a flash campaign for elections in less than three weeks that Prime Minister Antonis Samaras said will determine the fate of the country’s membership in the euro currency area.
All Eyes on Berlin as ECB Readies Bond-Buying Scheme – Reuters
As Europe stumbles into 2015, dogged by weak growth and the prospect of deflation, Draghi is on the verge of launching mass purchases of government bonds with new money – also known as quantitative easing (QE) – in the hopes of jolting Europe’s economy into life. It is unclear whether he can count on the clear support from Berlin.
Turkey Moves to Boost Financial Stability Through Forex Reserves – Wall Street Journal (subscription)
Turkey’s central bank raised short-term foreign currency reserve requirements for banks on Saturday in an effort to bolster financial stability, as a global emerging-markets selloff keeps the lira near a record low and Turkish firms face mounting international debt obligations.
Krona Traders Facing Windfall Gains as Swedish Risks Ease – Bloomberg
Investors in Sweden’s currency are already profiting from a last-minute deal struck in the final days of 2014 to avert political upheaval.
Ruble Starts New Year With Plunge as Oil Declines to 2009 Low – Bloomberg
The ruble picked up right where it left off last year, weakening as oil prices extend their plummet. Russia’s currency declined 4.1% to 58.40 per dollar at 1:05pm in Moscow, in its first day of trading of 2015 after a 46% decline last year.
Canadian Exporters to Russia Assess Fallout of Currency Crisis, Sanctions –Globe and Mail (subscription)
Canadian exporters stung by Russia’s currency crisis and its retaliatory sanctions against the West wonder what 2015 will hold for a market filled with promise less than 12 months ago.