Published 00:48 (GMT) 23 Apr
FT: US plans to force foreign banks to hold more capital are a threat to harmonious global regulation and risk "a protectionist reaction", the EU commissioner in charge of financial services has warned.
Michel Barnier told Fed Ben Bernanke that plans to force higher capital requirements on the US subsidiaries of European banks could lead to retaliation against US banks. In a pointed letter seen by FT, Mr Barnier argued that the Fed plans are a "radical departure" from past US policy and could hamper the international economic recovery. Under the Fed's proposal, which could come into force later this year, large foreign banks would have to ensure that their subsidiaries met a new international minimum level of 7% core capital to risk-weighted assets.
On FX, some focus on the above, for impact on European banks in US. Good to watch. Though little impact on FX now. GBP/USD at 1.5290-92, range of 1.5219 to 1.5293 global range on Monday. Bids at 1.5250-60/1.5200. Offers 1.5300-10, with 2-way interest from Asian accounts, while Sovereign buying on dips to 1.5200 lows. EUR/USD at 1.3060-63, offers at 1.3080-00, Asian, sovereigns, M.E. bids on dips to 1.30 lows. Still range of 1.3000-1.3200 on the wide. WL
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.