Published at 03:59 (GMT) 24 Oct
Guardian: BoE will fire bosses of collapsing banks and force investors to take losses under plans announced on Thursday intended to avoid another taxpayer bailout of the banking system.
Threadneedle Street would conduct any rescue operation over 48 hours – most likely over a weekend – and install a new management team at the failed business. Instead of pumping public money into the collapsed bank, as happened in the GBP45bn bailout of RBS, the losses would fall on shareholders and bondholders.
On FX, some focus on the above, good to watch for any changes in structures of banks and contingency plans. Also on the "too big to fail" debate. Little impact on FX. GBP/USD at 1.6030-33, within 20-25pips of 1.6022 to 1.6038 so far today. Offers at 1.6040-50, with focus still on the post retail sales dip 1-week lows of 1.5995 seen on Thursday. Lowest level since Oct 16 1.5940.
EUR/GBP at 0.7893-95, offers at 0.7900-10, bids at 0.7850-60. Interest to sell on rallies, given ongoing concerns over eurozone growth, more ECB stimulus ahead. While BoE seen less dovish, despite likely later than expected BoE rate hike in 2015. WL
Recommended Content
Editors’ Picks
AUD/USD eases toward 0.6500 after mixed Australian trade data
AUD/USD is seeing some fresh selling interest in the Asian session on Thursday, following the release of mixed Australian trade data. The pair has stalled its recovery mode, as the US Dollar attempts a bounce after the Fed-led sell-off.
USD/JPY rebounds above 156.00 after probable Japan's intervention-led crash
USD/JPY is staging a solid comeback above 156.00, having lost nearly 450 pips in some minutes after the Japanese Yen rallied hard on another suspected Japan FX market intervention in the late American session on Wednesday.
Gold price stalls rebound below $2,330 as US Dollar recovers
Gold price is holding the rebound below $2,330 in Asian trading on Thursday, as the US Dollar recovers in sync with the USD/JPY pair and the US Treasury bond yields, in the aftermath of the Fed decision and the likely Japanese FX intervention.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
The FOMC whipsaw and more Yen intervention in focus
Market participants clung to every word uttered by Chair Powell as risk assets whipped around in a frenetic fashion during the afternoon US trading session.