HSBC Faces Fresh Suit Alleging Forex Manipulation – Financial Times (subscription)
HSBC is facing a fresh legal battle over allegations that its traders manipulated foreign exchange markets for their own profit at the expense of their clients, with the allegations centring on trades from more than a decade ago.
Pound’s Message to Investors: Wake Up and Smell the Election – Wall Street Journal (subscription)
Investors are scrambling to protect themselves against big moves in the British pound ahead of this week’s election, the outcome of which many had taken for granted.
FX’s Controversial ‘Last Look’ Goes Under the Microscope – Financial News (subscription)
One of the most controversial practices in the $5.1tn-a-day currency markets is in for further scrutiny, highlighting the challenge of restoring trust in an industry scarred by scandal.
Draghi May Look Backward to Chart ECB Communication on Future – Bloomberg
Mario Draghi may look to the European Central Bank’s past communication to find the right balance for the future.
Some Inconvenient Facts for the Fed – Wall Street Journal (subscription)
The central bank is poised to raise rates but a weaker economy might put more action on hold.
Investor Doubts About Trump Agenda Weigh on Dollar – Financial Times (subscription)
US currency hits new post-election low as CEOs warn on reforms getting bogged down.
Foreign Investors to Pour Nearly $1 Trillion Into Emerging Markets in 2017: IIF – Reuters
Non-resident capital inflows to emerging markets should reach $970 billion this year, a 35 percent increase from 2016, the Institute of International Finance said in a report released on Tuesday.
Bitcoin Surges 8% to Record Near $3,000 Before Giving Up Some Gains – CNBC
Bitcoin surged more than 8 percent at one point on Tuesday to a record, breaking above $2,900.
Gulf Dispute Sparks Worries Over Qatari Currency – Financial Times (subscription)
Qatar’s currency has come under pressure from investors amid rising tensions in the Middle East.
China’s Economic Data: An Accurate Reflection, or Just Smoke and Mirrors? – Stlouisfed.org
Since China became more open in 1978, its gross domestic product (GDP) is reported to have risen from 2.3 percent of the world’s economy to nearly 18 percent. Because of this rising share, the Chinese economy influences a myriad of economic outcomes, including, for example, global prices of oil and food, as well as U.S. imports and exports. But are these data on China’s economy accurate?
Beijing’s Meddling Means the Yuan May Never be a Truly Global Currency – South China Morning Post
The Chinese government’s resistance to a fully market-determined exchange rate limits the willingness of international markets to adopt the yuan.