Fed’s Nod to Currency Wars Fuels Second Guessing by Dollar Bulls –Bloomberg
The Federal Reserve chair, Janet Yellen, acknowledged the negative consequences of this year’s gains Wednesday, saying the currency is weighing on US exports and inflation as policy makers pared back their outlook for interest rate increases. That sent the greenback down by the most since 2009, though it rebounded Thursday to continue its rally of 14% over the past six months.
SNB Keeps Deposit Charges and Interest Rates Unchanged, Signals Franc Intervention – Reuters
The Swiss National Bank kept a charge on some cash deposits steady at -0.75% on Thursday, but said it would remain active in foreign exchange markets to weaken what it sees as a “significantly overvalued” franc.
Bad News for Saxo, But Good News for Currency Managers – Profit & Loss(subscription)
It will be another couple of months before we start to learn the real impact of the events of 15 January but overnight we received a negative hint; however, people I am speaking with are telling me a good story about currency managers – it’s clearly a mixed bag.
Citibank Sues Two Former Goldman Sachs Partners Over $29 Million Swiss Franc Margin Call – Forbes
The sharp and unexpected rise of the Swiss franc in January resulted in big losses for hedge funds, investment banks and other currency speculators, even causing some hedge funds to shut down. Now, there is a lawsuit over a $29 million margin call that hit the joint family office of two former Goldman Sachs partners.
Banks Keep Tightening FXPB Offering as Risk Profiling Takes Centre Stage –Forex Magnates
In one ramification of the CHF crisis, firms operating in the leveraged products space are facing an uphill struggle in their bid to take heed of a bank’s prime brokerage services, as new emerging players try to fill in the gaps.
Riksbank’s Krona Resolve Seen Tested After Rate Cut Shocker – Bloomberg
After venturing deeper into negative territory than ever before, Sweden’s central bank is now expected to deliver even more measures.
Asian Currencies Shoot Higher Against Dollar – Wall Street Journal(subscription)
Asian currencies shot higher against the US dollar Thursday, a rare reprieve after months of declines, but analysts cautioned that the gains will likely be temporary as the Federal Reserve sticks to its plan to raise interest rates.