Price swings in the $5.1-trillion a day currency market have jumped this month to the highest since November 2016 on a monthly basis, according to a JP Morgan gauge.
The US dollar has come under pressure, with traders shifting away from the greenback as the bout of volatility in global financial markets subsides.
The euro gained as gains in global equity markets encouraged traders to sell the dollar and tiptoe back into riskier assets.
Sterling strengthened as data showed British inflation unexpectedly stayed close to its highest levels in six years in January, firming up investors’ bets that the Bank of England will raise interest rates again in May.
The Bank of England’s hawkish rhetoric on Thursday has caused Toronto Dominion Bank to double down on its call for a rate increase in May and bet on more strength in the pound versus the euro.
UBS quants show prices can differ by up to 25 correlation points if products modelled accurately.
Market participants say CME, CBOE should clear bitcoin futures separately.
Here’s another quirk from the early days of MiFID II: algorithmic traders like Virtu Financial are deliberately opting not to use a pricing advantage.
- How a 1% Hidden Fee Wipes £100,000 from a £100,000 Investment – Financial Times (subscription)
- MiFID II’s Failures Are Already Apparent – Integrity Research Associates
The White House proposed levying fees on derivatives users to bolster the Commodity Futures Trading Commission’s 2019 budget, an idea that may be dead on arrival because of industry opposition.
The Bank of England’s Prudential Regulatory Authority added that it wanted the firms it regulated to apply the rules to the unregulated spot foreign exchange market from the second half of this year.
Europe’s three top financial regulators have issued a joint warning to consumers on the risks of investing in cryptocurrencies, citing their extreme volatility and absence of legal protection.
Traders often skeptical of government praise CFTC’s Giancarlo.
CLS is releasing a new foreign exchange forecast data report as part of its suite of data products.
In an extract from what is allegedly the banking giant’s executive summary on cryptocurrency, the company appears bullish on crypto’s future.
Dubai gold trader Regal RA is the first company in the Middle East to get a license to trade cryptocurrencies, the Dubai Multi Commodities Centre said.
The South African currency dipped early but held on to most of its recent gains as investors awaited news on whether the country’s president will agree to resign.
The Chinese yuan’s value has surged to a nearly two-year high on a trade-weighted basis, a sudden shift from recent months.