Has Someone Found a Clever Edge in Trading Major Releases? – Profit & Loss (subscription)
On Tuesday – for the third time in a row – there was suspicious price action ahead of the Reserve Bank of Australia’s monetary policy announcement. I am confident there is no leak from the RBA; indeed several sources familiar with the matter say they believe a similar move happened ahead of last Friday’s employment report, which would suggest that someone is ahead of the game somehow. It would not be the first time that a firm with what it believes is an edge in FX markets starts in local markets before angling for bigger fish.
Hedge Fund Silver Ridge Delays Launch Amid FCA Inquiry – Wall Street Journal (subscription)
The launch of a hedge fund by the former head of foreign exchange at Citi has been delayed because of an inquiry by the UK Financial Conduct Authority, according to one of the founders of the fund. Silver Ridge Asset Management, a macro hedge fund set up by Anil Prasad, head of Citi’s currencies business until 2014, and Farhang Mehregani, a former equity trader at the bank, was due to start trading in early April.
Dollar Weakens Against Yen as BoJ Stands Pat, FOMC Minutes Eyed – Reuters
The dollar fell on Wednesday, retreating from a near three-week high hit against the yen the previous day, after the Bank of Japan kept monetary policy unchanged despite slowing inflation.
Dollar Bulls, Your Path Just Got Rockier – CNBC
Dollar bulls appear to be back in the driving seat but analysts warn the good times are not expected to last that long as the firm US currency faces a tougher time pushing higher amid mixed economic data and growing signs of a recovery in Europe.
Denmark Stays Out of Currency Market – Wall Street Journal (subscription)
Denmark’s central bank refrained from intervening in the foreign exchange market in March, in a sign that the national currency has stabilised against the euro following weeks of volatility brought on by the European Central Bank’s stimulus efforts.
SNB Foreign-Currency Reserves Hit Record as Franc Appreciates – Bloomberg
The Swiss National Bank’s foreign-currency reserves rose to a record in March as the franc appreciated against the euro. The central bank’s holdings of foreign currency increased to 522.3 billion francs last month from a revised 509.2 billion in February, according to data published on its website on Tuesday.
A Chinese Win at IMF No One-Way Bet for Yuan – Reuters
Later this year the IMF might include the Chinese yuan in its official basket of reserve currencies, a political and economic triumph for Beijing in the teeth of U.S. opposition, but slowing growth in China is likely to limit the impact of the victory.
New City Index Boss Attacks Lax Checks on ‘Kermit’ Customers – The Independent
Customer background checks among some spread betting and currency trading firms are so lax that would-be punters are opening accounts under names including Kermit the Frog and Mickey Mouse, according to the new owner of City Index.