Published at 02:30 (GMT) 21 May
Just for info on the FX settlement;
WSJ: 5 global banks agreed to pay more than $5bn in combined penalties and plead guilty to criminal charges to resolve a long-running US investigation into whether traders colluded to move FX rates for their own financial benefit.
The settlements largely close the book on the latest industrywide investigation of probes into mortgage misdeeds, manipulative trading behavior and tax evasion. The biggest global banks have paid more than $60bn in penalties over the past 2 years to resolve allegations of wrongdoing.
4 of the banks, Barclays, Citigroup, JP Morgan Chase and RBS, pleaded guilty on Wed to conspiring to manipulate prices in the $500 billion-a-day market for USD and EUR, authorities said. The fifth bank, UBS, received immunity in the antitrust case but pleaded guilty to manipulating Libor.
On FX, good to watch if all the probes have been settled. Also eye any USD demand for the above to pay for the settlement - from UK clearers and possibly Swiss names. GBP/USD at 1.5545-50, offers at 1.5580-00, bids at 1.5500-10, supported on dips on EUR/GBP selling interest. Now at 0.7145-50. Offers at 0.7190-00, bids at 0.7100, stops below.
USD/CHF up at 0.9355-60, bids at 0.93 lows, offers at 0.9400. Interest to buy on dips now from Swiss, real money. Though focus on EUR/CHF - now a tad lower at 1.0390-00. Eye any SNB rumours or surprises. Bids at 1.0350, offers at 1.0450/1.0500.
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