Speculators Slash Net U.S. Dollar Longs to Lowest in 1-1/2 Years -CFTC, Reuters – Reuters
Speculators further reduced bullish bets on the U.S. dollar for a seventh straight week, with net longs dropping to their lowest level since mid-July 2014, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday.
Racked Markets Hand Verdict to Central Banks on Sub-Zero Rates –Bloomberg
It seemed like a good idea at the time: Cut interest rates below zero to revive growth. But as policy makers from Tokyo to Stockholm embrace the notion, investors are close to panic mode. Far from buoying financial markets this year, negative rates have helped global stocks enter a bear market, sent the cost of protection against corporate defaults soaring and driven investors to havens such as U.S. Treasury bonds and gold.
Asia’s Rich Advised to Buy Yen as BOJ’s Negative Rates Backfire – Bloomberg
Money managers for Asia’s wealthy families are favoring the yen as it benefits from the turmoil in global financial markets.
How Much Has Japan Spent on Keeping the Yen in Check? – Bloomberg
Japan has spent the equivalent of between $8 billion and $117 billion in the past four episodes to check undue strength in the yen.
Fed’s ‘Dot Plot’ Looks Increasingly Out of Touch On Rates – Reuters
The Federal Reserve’s rate path “dot plot” has become increasingly detached from financial markets’ interest-rate projections and risks sending an overly hawkish message that may undermine the central bank’s credibility.
Ex-Rabobank traders lose bid in U.S. to overturn Libor convictions – Reuters
Two former Rabobank traders on Thursday lost a bid to overturn their convictions arising from an international investigation into the manipulation of Libor, the leading global benchmark for pricing financial transactions.
Chinese Start to Lose Confidence in Their Currency – New York Times
As the Chinese economy stumbles, wealthy families are increasingly trying to move large sums of money out of the country, worried that the value of the currency will fall and their savings will be worth less.
Currency Dilemma Looms for PBoC After Holiday – Bloomberg
China’s central bank faces a difficult choice. Raising the yuan fixing on Monday to match last week’s dollar drop would undo much of the benefits of January’s depreciation. Any overt weakening bias after the week-long holiday risks worsening global market turmoil.
China Central Bank Governor Zhou Xiaochuan Plays Down Forex Fears –Financial Times (subscription)
China’s central bank governor played down concerns over the country’s falling foreign reserves and said he saw no basis for continuing depreciation in the renminbi