Swiss Turmoil Shows Machines May Deepen Currency Shock, BOE Says –Bloomberg
Extreme volatility in currency markets the day the Swiss National Bank stopped capping the franc shows how electronic trading may exacerbate price shocks.
Lawyers Slam Financial Conduct Authority’s ‘Rushed’ Forex Probe – Financial Times (subscription)
Lawyers have criticised the UK’s investigation into manipulation of the foreign exchange market as a “rushed job” that resulted in “arbitrary” fines, according to an international ranking of regulators’ methods.
Getting to the Root of Price Action Around RBA Announcement – Profit & Loss(subscription)
I continue to be bothered by the price action ahead of this month’s Reserve Bank of Australia monetary policy announcement, which is the subject of an investigation being led by ASIC, the Australian regulator.
Dollar Surge Poses Policy Dilemma for Fed – Financial Times (subscription)
The euro fell closer to parity with the dollar on Wednesday, as the US currency’s strength heightened the policy conundrum facing the US Federal Reserve as it prepares for its first interest rate increase in nearly a decade.
Investors Forced to Get Creative for ‘Carry’ Trade – Wall Street Journal(subscription)
Whipsawed by upheaval in the world’s foreign exchange market, investors are ripping up the rulebook on a popular trading strategy.
China Central Bank News Conference: Yuan Volatility Acceptable – Reuters
China has no need to change its prudent monetary policy, and is moving to introduce deposit insurance and remove ceilings on deposit rates in 2015, central bank governor Zhou Xiaochuan told reporters on Thursday.
Report: Best Practices in Conduct Risk 2015 – Profit & Loss (free story)
As global regulators increase scrutiny over company culture and employee behaviour, investment firms must begin implementing measures to offset the risk that they could be fined for employee misconduct, according to research from GreySpark Partners, a capital markets consulting firm.
Euro Sees Respite After Week of Heavy Falls – Wall Street Journal(subscription)
Some respite came for the beleaguered euro Thursday after a week of heavy falls, with the currency rebounding from a 12-year low against the dollar.