U.S. Banks Expect Solid Earnings In First Quarter FX, Analysts Say

BANKS

First-quarter foreign exchange trading revenues at U.S. banks may look better than they have for some time, say FX managers and analysts in New York. Market participants point to trending markets, volatility and a re-emergence of customer business as factors in the improvement.

"Customer-driven businesses fared well during the quarter, as did market-making operations and proprietary trading," says FX chief dealer Scott Gallopo at Chemical Bank. "So FX revenues should be surprisingly strong a