Pound Approaches Seven-Year High Versus Euro on Jobs Data, BOE – Bloomberg
The pound approached a seven-year high versus the euro after reports showed UK unemployment fell, average earnings rose more than economists estimated and the Bank of England said it sees inflation rising “fairly sharply” as the effects of weaker oil prices fade.
Canada Has 3-4 Years to Take Advantage of Renminbi Hub: Chinese Banker – Reuters
Canada will have only three or four years to take advantage of its renminbi trading hub before China liberalises its capital account and so reduces the competitive advantage the hub creates, a Chinese banker key to the operation says.
Bank of New York Revises Results to Book Added FX Litigation Expense – Wall Street Journal (subscription)
Bank of New York Mellon said it would adjust its fourth-quarter results to include an additional litigation expense of $598 million as it nears resolving several legal issues, including most of its foreign exchange-related matters.
Yen Blips Higher After BoJ Holds Fire – Reuters
The yen steadied in early European deals on Wednesday, after a brief jump in Asian trading driven by the Bank of Japan’s confirmation it saw no need to print more money to stimulate the economy.
Pressure Builds to Weaken the Yuan – Wall Street Journal (subscription)
Investors see more pain ahead for the Chinese yuan, as pressure mounts for Beijing to address slowing growth by devaluing its tightly controlled currency.
Norway Gets Caught in Currency Race to Bottom – The Business Times
Scandinavia’s richest economy will need to keep cutting rates to stop its currency strengthening amid historic monetary stimulus elsewhere, according to some of the region’s biggest banks.
Australian Miners Embrace Options to Hedge Currency Fall – Asia Risk (subscription)
After a 15-year break Australian miners have started to hedge their currency exposure using options structures in response to a prolonged fall in the value of the Australian currency versus the US dollar. For the past decade-and-a-half, the mining industry has shied away from large-scale foreign exchange hedging mindful of losses sustained when they last implemented structured derivatives.