Tag: China

China

Geopolitics Drives Record 2019 FX Volumes for SGX

SGX saw record volumes in its FX futures during 2019, which it credits to heightened trading activity due to geopolitical factors. The exchange is reporting aggregate FX volumes of $1.3 trillion for 2019, up 44% from $914 billion in 2018, with a total of 23.5 million futures contracts traded on its platform last year, a […]

US Treasury Rescinds China “Currency Manipulator” Label

The US Treasury has determined that China should no longer be designated as a currency manipulator. In a new report, Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, the Treasury cites economic reforms and commitments from China to refrain from devaluing the renminbi (RMB) as the reasons for this decision. […]

Battle Lines Drawn

Looking at the geographical distribution of OTC FX turnover, Galen Stops sees some areas of competition emerging amongst different trading centres, but argues that it will be a long time before we see the outcome of any moves being made now. It will have come as no surprise that the data from the Bank for […]

Currencies in Competition

On first glance there appeared to be few significant changes of note when looking at the currency-specific data in the latest BIS survey. But scratch beneath the surface and this data asks some important questions, says Galen Stops. Looking at the data regarding the currencies themselves in the latest OTC FX turnover survey from the […]

Brexit Uncertainty Not Hampering RMB Trading

Brexit uncertainty hasn’t stopped RMB trading activity in the UK reaching record highs, according to a new report published by the City of London Corporation. The report, London RMB Business Quarterly, shows that an average of £85 billion of RMB was traded in the UK on a daily basis in the second quarter of 2019, […]

Report Envisages Erosion of USD Global Reserve Status

A new report from Vontobel and Eurasia Group suggests that there could be an erosion of the US dollar’s reserve currency status as geopolitical tensions between America and China continue. The paper, titled The Next Digital Superpower: Scenarios for the US-China conflict and implications for the global economy, argues that the current US-China trade war […]

The 20 for 20 Countdown – Part Three

It’s been a busy 20 years since Profit & Loss launched. Colin Lambert and Galen Stops have picked out 20 key events or trends during that time and asked senior industry figures for their perspective on them – here’s numbers 10-6. 10. Brexit Putting aside the (ongoing) politics, the night of the Brexit vote showed […]

A Sense of Perspective

In a 1999 edition of Profit & Loss, David Clark, now chairman of the European Venues and Intermediaries Association (EVIA), reflected on 30 years in the foreign exchange industry. Now he talks about what has – and hasn’t – changed in the industry since then and makes some bold predictions for the future. Profit & […]

In the FICC of It

This week’s podcast sees Colin Lambert and Galen Stops respond to listener feedback from recent episodes before turning their attention to events in the FX market last week – and the return of volatility. With the trade war and central bank surprises suddenly kicking FX markets into life Lambert is intrigued to see if the […]

USD/CNH Volumes Surge on SGX Amidst Trade War

Having recorded a new record high trading volume of $7.5 billion notional in its USD/CNH futures on Friday, August 2, SGX saw a 38% increase in volumes as trading resumed on Monday, August 5. The initial surge in trading was precipitated by a tweet from US president, Donald Trump, that his administration plans to impose […]