News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.37% Gold: -0.28% Silver: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3xWt8YB351
  • The opening range for April raises the scope for a further decline in the US Dollar Index (DXY) as the monthly high (93.34) lines up with the first day of the month. Get your market update from @DavidJSong here: https://t.co/3iHUdOz7Oy https://t.co/ZmsEtSOICA
  • New Zealand Dollar Forecast: NZD/USD, NZD/JPY Key Levels with RBNZ on Tap - https://www.dailyfx.com/forex/market_alert/2021/04/12/New-Zealand-Dollar-Forecast-NZDUSD-NZDJPY-Key-Levels-with-RBNZ-on-Tap.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $NZD $NZDUSD $NZDJPY https://t.co/tziU8yPkpm
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇪🇺EUR: -0.10% 🇨🇭CHF: -0.13% 🇬🇧GBP: -0.17% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ALbF5MkoCp
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.01%, while traders in France 40 are at opposite extremes with 82.33%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SJNlYSTnZU
  • Dow Jones, Nikkei 225, ASX 200 Outlook: Bank Earnings in Focus as US Stocks Hit Records https://www.dailyfx.com/forex/market_alert/2021/04/12/Dow-Jones-Nikkei-225-ASX-200-Outlook-Bank-Earnings-in-Focus-as-US-Stocks-Hit-Records.html https://t.co/lGG8J2ntXT
  • Is the Eurozone entering into a second debt crisis? Find out here: https://t.co/27Y8gKO0xY https://t.co/VRfjvmBq6N
  • 🇯🇵 PPI YoY (MAR) Actual: 1% Expected: 0.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2021-04-11
  • 🇯🇵 PPI MoM (MAR) Actual: 0.8% Expected: 0.4% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-04-11
  • 🇯🇵 PPI MoM (MAR) Actual: 0.8% Expected: 0.4% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2021-04-11
Guest Commentary: Growing Divide between Stability of US and European Banks

Guest Commentary: Growing Divide between Stability of US and European Banks

Yohay Elam, Forex Crunch,

Among the 28 officially identified Systemically Important Financial Institutions (SIFIs), there is a clear divide between the relatively low leveraged US banks, and some of their European peers, which are highly leveraged.

European banks are still in the process of deleveraging. They received significant help from the European Central Bank via the LTRO, and are expected to get an even bigger dose of stabilizing liquidity in the second operation due at the end of the month.

According to Jean-Pierre Chevallier, New York Mellon has the lowest leverage among this selected group of institutions, with a leverage of 8.5. Goldman Sachs closes the list of American banks with a leverage of 12.1.

On the side of the scale, French bank Société Générale closes the list, and it's followed by Deutsche Bank. Germany's largest bank is highly leveraged.

While Asia is showing growing economic strength and importance in recent years, only a handful of its banks are identified as systematically important.

It's interesting to note that Italy's Unicredit and Spain's Santander are just behind US banks, high in the list. And on the other hand, Sweden's Nordea, Holland's ING and the two big Swiss banks are lower on the list.

You can see the full list at Chevallier's site. He also provided this nice graph:

Guest_Commentary_Growing_Divide_between_Stability_of_US_and_European_Banks_body_201202026.png, Guest Commentary: Growing Divide between Stability of US and European Banks

It's important to note that different countries have different accounting methods, and so do different analysts. But even if European banks' leverage is not as horrible, there is still a very clear gap between banks on both sides of the Atlantic.

Further reading: Greek Banks In Worse Shape Then Estimated

By Yohay Elam, Forex Crunch

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES