Traders Denied M&A Payday as Firms Use Cash: Currencies

It’s getting tougher for currency traders to catch a break.

After investigations into alleged rate-fixing and central-bank stimulus that pushed volatility to pre-crisis lows, dealers are now being denied a windfall from the flurry of cross-border mergers in Europe. Rather than get the euros or pounds they need through currency markets, there’s speculation U.S. companies including General Electric Co. may be dipping into offshore cash piles they’ve built up to mitigate tax liabilities.