The pound has fallen to its weakest level since the financial crisis broke out as worries persist over UK’s economic prospects outside the EU.
- Worst Four Days Since June Push Sterling Below $1.23 – Reuters
- David Davis Ignores Plummeting UK Currency and Signals a ‘Hard Brexit’ Stronger Than Ever – Independent
- The Pound is Trying to Tell You That Bad Things Are Coming – Business Insider
The UK currency’s weakness is set to continue, according to several market watchers, with many suggesting sterling could even reach parity with the US dollar.
The slump in sterling is a blessing in disguise after years of overvaluation and helps to break the corrosive stranglehold of the financial elites over the British economy, according to a former bail-out chief for the International Monetary Fund.
Currency’s weakness forces many firms to adjust their hedging strategies.
US fund manager Franklin Templeton said it was launching a new global currency fund headed by its star bond investor Michael Hasenstab and one of his chief lieutenants.
Commodity trading advisors endured another difficult month in September, according to data from Societe Generale Prime Services.
According to ANZ, net US dollar long positioning against a basket of major currencies continued to swell last week, leaving it at the highest level seen since late August.
The GFMA’s Global FX Division has named Claudia Jury, managing director and co-head, currencies and emerging markets at JP Morgan as its new chair, and Nigel Khakoo, head of G10 FX at Nomura as vice chair.
After joining the International Monetary Fund’s reserves basket on Oct. 1, the yuan has gone in one direction: down.
Clearing executives are still adjusting to the slew of post-crisis reforms.
Report has urged buy-side companies to act now to ensure compliance with MiFID II requirements on protecting end-investors.
Firms must improve their technology as European regulator issues guidance for firms, venues and reporting entities on interpreting transaction reporting, order record-keeping and clock synchronization for MiFID II compliance.
Prescriptive models could increase systemic risk at CCPs, market participants warn.
Central counterparties are seeing a surge in voluntary clearing of interest rate swaps not currently mandated for clearing by US regulators.
The CFTC’s Division of Market Oversight extended the no-action relief which was granted to swap execution facilities from certain ‘occurs-away’ requirements in the definition of block trades.
Nearly a quarter of global businesses are now using the renminbi to trade with China, yet only two in five firms are aware of the trade initiatives being put in place by the Chinese government to facilitate cross-border trading, a HSBC Commercial Banking survey shows.
China’s currency outflows may be bigger than they look, with Goldman Sachs Group warning that a rising amount of capital is exiting the country in yuan rather than in dollars.
Most emerging Asian currencies slid on Tuesday with the Chinese yuan at another six-year low as the dollar stood tall on growing expectations that the US Federal Reserve will raise interest rates in December.
Malaysia’s ringgit held gains, defying a decline in Asian currencies, as a jump in crude oil prices brightened the prospects for the nation’s energy revenue.
The Pound to Canadian Dollar rate is forecast to continue its journey south as oil-sensitive currencies dominate.
The New Zealand dollar fell to a two-month low as investors see a likely win by Democrat candidate Hillary Clinton in the US presidential campaign as paving the way for higher interest rates.