The following Forex news reports are the latest developments of the Forex market. The news reports are updated frequently and include all the events that affect the foreign exchange trading industry.
U.S. Markets are closed Monday for the Martin Luther King holiday but throughout Europe banks and brokers continue to react to last Thursday’s decision by the Swiss National Bank to abandon its three-year-old currency cap which essentially removed a pillar of support for the euro.
Major world banks have already lost considerable monies from the surprise SNB decision to end the cap on the franc. Cumulatively, Citigroup Inc. (C), Deutsche Bank AG and Barclays Plc (BARC) are said to have suffered from $400 million in losses and analysts predict that this could be followed by others in next few days.
FXCM, a leading online provider of Forex trading and services has received a $300 million cash infusion from Leucadia National Corporation, owner of a New York-based investment bank Jefferies Group.
Following Thursday's sudden and explosive rise in the value of the Swiss Franc against other currencies, there has been mounting concern over the impact this move will have had upon the balance sheets and regulatory positions of Forex brokerages
Losses are already mounting as a result of the Swiss currency shock and casualties are being reported all over the world.
The Swiss Franc has jumped explosively in value during trading today following the Swiss National Bank's announcement that it would no longer intervene to prevent its currency from appreciating any further against the Euro.
Global markets turned chaotic on Thursday when in a shock move, the Swiss National Bank (SNBN) scrapped its minimum exchange rate, abandoning a tool policy makers said just days ago was necessary to ward off deflation.
Earlier today, the Swiss National Bank surprised FX markets by dropping its 3-year long cap against the Euro, resulting in a 30% surge in the Swiss Franc’s value.
Reserve Bank of India Governor Raghuram Rajan cut interest rates in an unscheduled review in order to revive growth in Asia’s third-largest economy after inflation eased. Stocks, bonds and the rupee surged on the news.
The common currency Euro, for the first time since 1999, fell below its launch price versus the U.S. Dollar after Pedro Cruz Villalon, a high ranking court official for the European Court of Justice, said that the European Central Bank’s bond purchasing program was legal and valid under specific conditions.
Deteriorating risk sentiment as a result of falling oil prices sent FX investors flocking to the safe haven currencies as those oil price worries trigger fresh concerns about global growth.
Asian stocks fell yesterday as oil at a 5 1/2 year low weighed on energy companies and a stronger yen and declines in U.S. equities dragged down Japanese shares as the market opened after a holiday.
Last week’s data release from the U.S. showed an improvement in new jobs created and a lowering of the unemployment rate.
The dollar fell for a second day after an unexpected drop in U.S. wages clouded the outlook for interest rates, and crude oil resumed declines.
Gold rose on Friday ahead of a closely watched U.S. jobs report and the metal was set to post its first gain in four weeks thanks to safe-haven bids amid political uncertainty in Greece plus robust Chinese demand.
