Surprise China Devaluation Marks Escalation of Currency War – Financial Times (subscription)
Beijing has launched the latest attack in a growing currency war by devaluing its currency by almost 2% on Tuesday morning. The one-day move, done in a bid to boost failing exports, was the biggest since 1993 and may, analysts warn, be hard to reverse.
Germany’s Financial Watchdog Worried Over Scale of FX Manipulation – Wall Street Journal (subscription)
Germany’s banking watchdog is concerned about the magnitude of attempted foreign exchange manipulation at large domestic banks including Deutsche Bank and expects to conclude its investigation into possible misconduct by next year.
Momentum Chasers Dominate as Top Currency Strategy Is to Pile On – Bloomberg
Riding trends is turning out to be the best way to make money in the foreign exchange market. After a brief lull, momentum trading has stormed back to the fore this quarter by gaining 1.6%, aided by appreciation in the pound and the dollar against the Australian and New Zealand currencies, according to a Deutsche Bank measure.
Currency Trading Boosts 2015 Managed Futures Data – Profit & Loss
A strong performance in July, driven largely by currency trading, means that the Newedge CTA indices are positive for the year so far.
Should the Buy-Side Begin Central Clearing Early? – The Trade
The European Commission has effectively set the date of October 2016 for buy-side firms to become subject to mandatory central clearing, but should they begin earlier than that?
CCPs Confront Cleared Swap Basis Threat – Risk Magazine (subscription)
In theory, a price difference could emerge for any derivative that is cleared at two or more clearing houses – as recently happened for US dollar swaps at CME and LCH.Clearnet. From Japan to Mexico, other clearers explain how they are trying to avoid it.
Algorithmic Trading: The Play-at-Home Version – Wall Street journal (subscription)
DIY’s newest frontier is algorithmic trading. Spurred on by their own curiosity and coached by hobbyist groups and online courses, thousands of day-trading tinkerers are writing up their own trading software and turning it loose on the markets.