High-Frequency Trader Warns of Potential Market ‘Catastrophe’ – Financial Times
The head of one of the biggest high-frequency trading companies has warned that there are several faultlines in the structure of increasingly electronic, automated financial markets that could lead to a “catastrophe” in the long run.
Fed’s Mester Unmoved, Says U.S. to Overcome ‘Soft Patch’ – Reuters
The U.S. economy remains sound and will overcome recent market turbulence, allowing the Federal Reserve to continue tightening its monetary policy as planned, a top Fed official said on Thursday.
Why the Fed Can’t Save Markets Right Now – Wall Street Journal (subscription)
Taking a March rate increase off the table is easier said than done.
Dollar Nurses Losses as Payrolls Report Looms – Reuters
The dollar steadied in Asian trading on Friday but remained on track for weekly losses, as investors braced for U.S. employment figures later in the session for the latest clues on the outlook for the Federal Reserve’s monetary tightening path.
BOJ Not Engaging in Currency War With Negative Rates – Kuroda – Reuters
Bank of Japan Governor Haruhiko Kuroda said the central bank was not engaging in a currency war by adopting negative interest rates, stressing that the move was aimed at stimulating the economy through lower borrowing costs.
Bank of England Cuts Growth Outlook, Rate Hike a Distant Prospect – Reuters
The Bank of England cut its growth forecasts on Thursday and the only policymaker who had been pushing for a rate hike reversed his position, suggesting rates will stay on hold for the foreseeable future.
Bank of England Policymakers Speak After Inflation Report – Reuters
BoE Revamps FX Joint Standing Committee Membership – Euromoney
The Bank of England (BoE) has recast the terms of reference and membership of a key foreign-exchange industry committee to take account of the growing diversity of the forex market in the UK and the central role that will be played by the new global code of conduct.
Goldman Sees Pound Tumbling by as Much as 20% on `Brexit’ – Bloomberg
The pound could fall as much as 20 percent if Britain quits the European Union, according to Goldman Sachs Group Inc.
China’s Foreign Reserves Poised for Record Drop on Yuan Defense – Bloomberg
China’s foreign-exchange reserves, already at a three-year low, are poised to post a second consecutive record monthly drop as policy makers intervene to support the yuan.
SNB’s FX Reserves Increase to Record Amid Depreciating Franc – Bloomberg
Switzerland’s foreign currency reserves increased 3 percent to an all-time high in January, boosted by the franc dropping against the euro and the dollar.
Hamstrung Central Banks Struggle With Currency Temptation – Reuters
The world’s top central banks have all but given up hope of returning to conventional monetary policy soon with many touting rate cuts, raising the risk of competitive currency devaluations and doubts they can meet their mandates.