The attacks in the Belgian capital on Tuesday are unlikely to have a long-term impact on markets, but they could result in new roadblocks to cross-border commerce and lend momentum to Euro sceptics, analysts told CNBC. European stocks were under pressure but had come off their lows following deadly attacks at Brussels main airport and on the city’s metro system. U.S. equities were mixed by late morning.
- Dollar Rises as Risk Appetite Returns After Brussels Attacks – Reuters
- Yen and Swiss franc gain as Brussels explosions spur safety flows – Reuters
- Pound Falls on Fears of Anti-EU Backlash After Brussels Attacks – The Wall Street Journal (subscription)
Britain’s fraud watchdog has ended an investigation into possible foreign exchange market rigging, saying it did not have enough evidence to secure convictions, in a further setback to its efforts to prosecute wrongdoers in financial markets.
- K. SFO’s ‘Appetite’ Questioned After Decision to Drop FX Probe – Bloomberg
- UK Closes FX Rigging Investigation – Profit & Loss
The battle over the fate of China’s currency is starting to get bloody for the bears.
The yen’s strongest gain since 2008 has petered out in time to forestall any intervention, according to Takatoshi Kato, a former top currency official at the Ministry of Finance.
Commitments by China and other major economies over the weekend have lowered the threat of currency depreciations that could fuel global market turmoil, U.S. Treasury Secretary Jacob Lew said Tuesday.