LONDON, July 27 (Reuters) – As competitors await Friday’s
opening of the Olympic Games to begin their quest for gold
medals, they may not be alone in their pursuit of the precious
Gold, set for its best week of gains since late May, may go
higher still, even after being boosted on Thursday by European
Central Bank President Mario Draghi’s pledge to do whatever was
needed to safeguard the euro.
LONDON, July 10 (Reuters) – Euro zone money market desks are
feeling the unintended consequences of the European Central Bank
(ECB) cutting its deposit rate to zero.
The ECB’s deposit rate usually acts as the floor for money
market rates and represents a safe haven where banks can park
money with the central bank to avoid counterparty risk – the
risk that a private borrower might prove unable to repay a loan.
LONDON, July 6 (Reuters) – Going short of euros against the
Russian rouble might have some merit after Thursday’s
European Central Bank (ECB) interest rate cut.
The euro has broken below its 200-day moving average (dma)
against the rouble and may be poised to test its 55-dma, which
is currently at 40.1675.
LONDON (Reuters) – Any euro bounce against the dollar exchange rate in the wake of Sunday’s Greek election might be limited with investors and reserve managers ready to sell into a rally.
The harsh reality may be that investors, including reserve managers, take the view that a long, hard road for the euro zone still lies ahead.
LONDON (Reuters) – Once bitten, twice shy Asian central bank reserve managers could steer clear of adding even more euros to reserves as the euro zone crisis lumbers on.
China, with the world’s largest foreign exchange reserves of $3.3 trillion, may be a case in point.
LONDON, June 11 (Reuters) – The European Union-funded rescue
plan for Spain’s debt-laden banks raises as many questions as it
answers and could therefore leave the euro vulnerable.
Sellers of euros are already said to be clustering in
the $1.2650-80 area, looking for a re-test of Friday’s $1.2435
LONDON, May 17 (Reuters) – Foreign exchange traders must be
considering the practical implications for their counterparty
lists if a Moody’s review of 114 European institutions, due by
end-June, results in widespread downgrades.
Some banks may lose business, a smaller number could gain.
Client exposures and risk may become even further concentrated
amongst a limited number of market participants.
LONDON, April 30 (Reuters) – For hedge funds looking for
volatility, an Apple a day might keep profits healthy, but this
leaves big banks’ foreign exchange desks facing thinner pickings
in a market where volumes are flat and trading ranges tight.
Since the beginning of February, Apple shares have
traded up from $455 a share to $644 and down to $555 before
rebounding to Friday’s $603 close in New York. In the same
period, the euro has traded between $1.2970 and $1.3485
- less exciting and potentially far less profitable.
LONDON, April 16 (Reuters) – The dollar’s month-long slide
against the yen may grind to a halt below 80.50 as a combination
of Japanese energy demand rising U.S. rents and technical
factors begin to underpin the greenback.
Of course, many will link the recent slide in dollar/yen to
the decline in two-year U.S. bond yields, to 0.275
percent on Monday, that gathered pace after April 6′s
disappointing U.S. non-farm payroll data.
LONDON, March 12 (Reuters) – Tighter credit poses a big
challenge to foreign exchange desks, which are already seeing
their profit margins shaved to the bone as e-commerce platforms
force them to quote ultra-competitive prices.
The end result could spell trouble for the foreign exchange
industry and mean that its daily turnover – currently $4
trillion – struggles to grow at the pace seen in recent years.