Euromoney (March Issue)
”The currency war that many feared as an inevitable accompaniment to the credit crisis played out as more of a paint-ball contest until the recent sharp slide of the yen. The violence of the yen fall of roughly 20% reawakened fears of a wave of competitive devaluations.” While many fear the negative repercussions, for investment banks and hedge funds, the revival of FX uncertainty holds out the hope of a recovery in their moribund currency-trading revenues.”
Financial Times (December 3)
The European Central Bank (ECB) wants “to reduce the City’s role as an offshore centre doing euro-denominated business…. A substantial clawback would hurt the City, which accounts for more than a third of all wholesale financial business in the EU and 40 per cent of global foreign exchange trading in the single currency. Quite how easily this activity could be repatriated by ECB fiat remains to be seen, as location, language and expertise also count for much in markets.”
Tags: Currency trading, ECB, EU, Forex, London
