High-speed sub-Atlantic cables may force banks to keep their armoury of currency trading hardware in London for some time, even if the dealers themselves go elsewhere when Britain leaves the European Union.
The first group of FX platforms to report volume data indicate a good November for the industry with the US elections driving sufficient volume to more compensate for the traditionally quiet period around the US Thanksgiving holiday.
The Japanese yen surpassed the Mexican peso as the biggest loser against the US dollar in November, highlighting the shift in investor sentiment in the weeks after Donald Trump won the US presidential election.
Sterling surged back to an 11-week high against the euro in late trade in London, racking up its best month since January 2009 as a deal to cut OPEC oil output weakened the single currency against the dollar.
Foreign exchange analysts at Morgan Stanley expect the euro to pound rate to fall in 2017.
The US dollar hit its highest level against the yen in nine months and also surged against the euro and Swiss franc after a rally in oil prices pushed US Treasury yields higher, while strong private payrolls data bolstered expectations for a hawkish Federal Reserve next year.
- Oil Exporters Lead Currency Gains as Crude Rises on OPEC Reports – Bloomberg
- OPEC Deal Hurts Asia FX; China Takes More Steps to Curb Outflows – Reuters
China’s central bank will restrict cross-border renminbi transfers, according to a document obtained by the Financial Times, in a move that will help stem capital outflows but hinder Beijing’s efforts to internationalise its currency.
The recent cuts announced at Standard Chartered are beginning to hit its FX department, with at least three senior staff thought to be leaving the bank.
Trump’s promise of tax cuts and fiscal spending rocks bonds, stocks and currencies.
Asian currencies are expected to depreciate for the fifth straight year, going into 2017, following mounting global headwinds; also sharp appreciation in the greenback will pose serious threats to major Asian currencies.
S&P Global Ratings said higher interest rates and volatile foreign exchange rates are the top credit risks for Asia Pacific countries including the Philippines next year.
While flight to safety investing has traditionally been directed towards investments with low risk-return profile, it is interesting to see how the events around the world have turned people to bitcoin, which is typically synonymous with high risk-reward.
The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging because of global risks.
An outline deal on how much capital banks must hold to avoid a repeat of the financial crisis has taken shape, a top regulator said, despite the failure of negotiators at a two-day meeting to reach agreement on global standards.
Cyprus’s financial regulator CySEC issued a warning to the mass of retail currency brokers registered on the island over their use of bonus schemes to encourage trading in risky products and related poor treatment of clients.
Martin O’Donoghue, who recently left his position as head of spot FX at Credit Suisse, is set to join Morgan Stanley in London, according to market sources.
Market sources tell Profit & Loss that Simon Winn has left EBS Brokertec where he was head of sales for Asia-Pacific.
Sources familiar with the matter say that BGC Partners has promoted three executives in London and New York.
CME Europe has informed members that it will be extending its FX liquidity creation program commencing on December 1st.
SmartTrade Technologies and Japanese firm SBI Liquidity Market haves extended their relationship with SBI adding SmartTrade’s pricing and distribution models to LiquidityFX, SmartTrade’s platform which is already deployed by SBI.
The British pound vs rupee rate losses stem from fears of EU spite in Brexit talks.
The Canadian dollar edged higher against its firmer US counterpart oil prices jumped on a deal by major producers to cut output and data showed the domestic economy grew at the fastest pace in more than two years.
GBP/AUD rises on exchange rate markets after Aussie dollar dented by building approvals.