Swiss National Bank Abandons Currency Ceiling – Financial Times(subscription)
Switzerland’s central bank is discontinuing its currency “ceiling” of CHF 1.2 per euro, introduced in the middle of the eurozone crisis, and has significantly lowered interest rates to -0.75%.
Forex Probe Finds New Signs of Potential Wrongdoing – Wall Street Journal(subscription)
Banks and traders that figured the worst was over in the foreign exchange scandal are facing an unpleasant surprise. Investigations into attempted manipulation of the vast currencies markets have uncovered new signs of potential wrongdoing, sparking a fresh round of firings by Wall Street banks and snaring new financial institutions.
JP Morgan Currency Trader Said to Be Suspended for Actions at RBS –Bloomberg
JP Morgan (JPM) has suspended a foreign exchange trader over allegations of wrongdoing related to his work at Royal Bank of Scotland Group, according to a person with knowledge of the decision.
JP Morgan Reports Nearly $1 Billion in Quarterly Legal Expenses – Wall Street Journal (subscription)
JP Morgan Chase reported legal expenses of $990 million in the fourth quarter as it continues to face pressure from regulators and law-enforcement officials on another expected foreign exchange related settlement this year.
FXPA Announces Deadline for Founders’ Council Memberships – Profit & Loss(subscription)
The Foreign Exchange Professionals Association (FXPA) has announced that the deadline for joining the group as a founding member will be 1 February.
The Floodgates of FX Litigation Open – Euromoney
JP Morgan’s $100 million settlement of a currency manipulation lawsuit has sparked a flood of interest from potential new claimants, and marks a new victory in their fight for compensation, according to a leading lawyer involved in negotiations.
China’s Yuan Shifts into Currency Major League – Reuters
After a surge in interest last year, China’s yuan is heading for the currency major league, with trading volumes more comparable to the euro, sterling, Australian dollar and Swiss franc than its emerging market peers.
Evolution of FX Trading: Models Converge and Competition Heats Up – eForex
The market for foreign exchange is the largest and most liquid financial market. The FX market plays an important role in facilitating global trade and enabling cross-border payments, along with being an asset class that is widely used for hedging and carrying out speculative trades.
Deflation Risk Renders Koruna’s Euro Cap Irrelevant – Bloomberg
Currency traders are taking aim at the Czech Republic amid speculation that policy makers will have little choice but to weaken the koruna as it seeks to avert deflation.