HSBC has agreed to pay a $101.5m penalty in a settlement with the US Department of Justice over its attempts to manipulate foreign exchange markets, allowing the bank to avoid pleading guilty to criminal charges.
The dollar laboured near a three-year low against a basket of currencies, heading for a fifth week of falls that would be its longest losing streak since May 2015.
Sterling seesawed after data showed British shop sales slid by much more than expected in December, though the currency was still on track for its longest winning streak against the dollar since 2014.
The UK has many structural problems, but unlike its neighbours trapped in the euro, the composition of the UK’s foreign assets and liabilities means that the Bank of England does not need to defend the currency for financial stability purposes.
Emmanuel Macron has said that if Britain wants special access for its financial services industry to the EU single market after Brexit, it will have to obey all of the bloc’s rules, adding: “Be my guest.”
Dealers and buy-side firms have effectively killed off foreign exchange swaps in Europe, thanks to new rules requiring the instruments to be collateralised.
The owner of the New York Stock Exchange is launching a service to bring bitcoin data to hedge funds and other professional trading firms, the latest sign that the once-fringe market for cryptocurrencies is being taken seriously by Wall Street.
Treasuries, the dollar, Nafta and the economies of the US and China all face some uncertainty.
Europe’s top markets watchdog may curb trading in derivatives in bitcoin and other cryptocurrencies as part of a broader crackdown on risky financial products available to retail investors.
Wall Street’s top regulator all but shut the door to approving exchange-traded funds that hold bitcoin and other cryptocurrencies, questioning whether the products could comply with rules meant to protect mom-and-pop investors.
Fall in operational risk weights could push up capital requirements for market and credit risk.
The Federal Reserve is facing a significant change in leadership that goes beyond the installation of a new chairman.
- White House Considering San Francisco Fed President John Williams for Fed’s No. 2 Job – Wall Street Journal (subscription)
Cross-border activity was negatively impacted by a decline equities and derivatives in Q3 2017.
Cboe Global Markets is exploring futures on other cryptocurrencies after becoming the first US exchange to offer Bitcoin contracts last month.
Signing makes sense. Failing to sign? Not so much.
Asian currencies strengthened as the dollar languished on fears over a US government shutdown and as China’s strong economic growth figures boosted sentiment in the region.
Can a currency that’s up 12% against the dollar over the last twelve months, and outperforming several of its emerging market peers, still be undervalued? Investors are betting that’s the case for the Malaysian ringgit.
Venezuela’s currency crossed a new barrier this week as hyperinflation exploded and Nicolas Maduro’s government readied a cryptocurrency issuance next month.