In March this year, Lloyds allegedly lost hundreds of thousands of dollars in cash after a senior foreign exchange dealer allegedly tipped off a counterpart at BP about a half a billion dollar currency deal. According to reports, four unnamed sources said Lloyds found out that a dealer, Martin Chantree, alerted a trader at BP of the bumper FX swaps deal, which the bank was planning to execute regardless of market price movements at a certain time. However, during the seven minutes before Lloyds began executing the trade at 10:53 GMT on 31 January 2013, the pound tumbled by 16 basis points against the dollar, costing the bank $750,000. Sources said Chantree told fellow traders that maybe he shouldn't have shared the information. Chantree has since been suspended. BPhas 200 traders which execute deals in energy, commodities and FX contracts. Although the group does not isolate trading unit profits in its financial results statement, in 2004 it revealed that it made $2bn in this business area alone.
Sterling blips higher after in-line inflation - Economic Times
Maher said sterling may be buffetted by data on the domestic and US economies this week, but was unlikely to be forced out of its recent range against the dollar. "If US numbers later today are as upbeat as yesterday's retail figures, then we may drop off against the dollar, but then we have UK labour data tomorrow which should be more positive," he said. "That should leave us roughly steady for the week (against the dollar). If you're into the sterling story at the moment, you're probably better playing it against the euro." The euro has struggled over the last two days against its major currency partners after European Central Bank policymakers gave their most explicit warnings that currency strength could trigger policy easing. The pound also gained 0.1 per cent against the euro to 82.51 pence. Notably, the gap between 10-year gilts and the equivalent German bund widened almost 2 basis points to 113.8 bps, its highest since last Wednesday, reflecting the pressure on Bund yields from the ECB's hints it is moving closer to more monetary easing. Britain's FTSE 100 showed little reaction to the UK inflation data, dipping 0.2 per cent to 6,571.26 by 0832 GMT. Ashraf Laidi, chief global strategist with London-based broker City Index Group, said a sharp 9 percent rise in the inflation numbers of house prices for many the main element of growth over the past year had helped sterling.