Top Headlines

Dollar Struggles as FX Markets Uneasy About Seven-Year High Short Bets – Reuters

The dollar held steady within established trading ranges as investors who have recently bet heavily against the greenback digested the implications of weekend strikes on Syria by United States and its allies.

A Fund That Beats 98% of Its Peers Is Shorting the Dollar – Bloomberg

BNY Mellon’s Murphy favors Japanese yen and Norwegian krone.

Sterling Rises Despite Syria Intervention as Investors Eye Data – Reuters

The pound rose despite Britain’s military intervention in Syria, as investors focused on data that could help shore up expectations of a May interest rate hike.

Wells Fargo Sued by FX Trader Claiming Wrongful Termination – Bloomberg

The former head of Wells Fargo & Co.’s foreign-exchange trading group sued the bank for wrongful termination, alleging his attempts to alert managers to abusive sales practices over more than a decade ultimately cost him his job.

Johnson’s Attorneys Seek Home Confinement – FX Week (subscription)

Mark Johnson should be sentenced to home confinement in the UK, rather than prison, as well as probation and community service, argue his defence attorneys.

Rouble Takes Fresh Hit After US Vows to Launch Further Sanctions – Financial Times (subscription)

Russia’s currency was on the back-foot once again as the week kicked off, with investors responding to the US-led strikes in Syria and a threat from the Trump administration that it will apply further sanctions.

Sharp Drops in Currencies Hint at Spreading Volatility – Wall Street Journal (subscription)

The currencies of places as diverse as Russia, Hong Kong and Kazakhstan slid last week, an alarming sign to some investors who worry that the geopolitical volatility affecting US stocks is spreading to other markets.

BNY Mellon Diving Into Prime Brokerage as Other Banks Retreat – Euromoney

The prime brokerage market will be hoping for a boost from the imminent launch of BNY Mellon’s new service, which will represent a reversal of the trend for larger banks to leave the space.

The City Has No European Rival – That Does Not Mean It’s Safe – Financial News (subscription)

Banks are spreading their bets, and their headcount, out across the continent in the wake of the Brexit vote

Where’s the Light at the End of the Tunnel? – Profit & Loss (subscription)

For currency managers the answer is, of course, more flexibility, but that means we edge into the world of style drift – and that is a no-no.

Regulatory News

ECB Asks Deutsche Bank to Gauge Investment Banking Exit Costs: Source – Reuters

Deutsche Bank has been asked by European Central Bank supervisors to calculate the potential costs of winding down its investment banking operations, a source told Reuters.

US Treasury Declines to Name China a Currency Manipulator, Adds India to Watchlist – Financial Times (subscription)

The US has added India to the list of countries whose foreign exchange and economic policies are under its close scrutiny, while again opting not to accuse leading trading partners of being currency manipulators.

BoJ Prepares to Link Settlement System with Hong Kong – FX Week (subscription)

The connection will provide a new pathway for Japanese banks to obtain Hong Kong dollars and cut the exchange-rate cost.

Company News

Santander Launches Blockchain FX Payment Service – Profit & Loss

Banco Santander has announced the launch of a new international payments service using blockchain-based technology.

Exegy Launches Trade Port FX Service – Profit & Loss

Exegy, a provider of managed services and low-latency technology for market data normalisation and distribution, has launched Trade Port FX, a fully managed FX market data and order execution solution.

Indian Crypto Exchange Loses $3.5m in Customers’ Bitcoin – Financial Times (subscription)

India’s Coinsecure has told authorities it has lost $3.5m worth of its customers’ bitcoin, the latest example of the risks to investors in the sector.

Market Savvy

Hong Kong Steps In to Support Currency for Fifth Time – Financial Times (subscription)

Hong Kong has taken action to support the local currency for the fifth time in less than a week, after the Hong Kong dollar repeatedly slumped to the low end of its permitted trading band.

Turkey’s Lira Weaker, Moody’s Sounds Alarm Over Currency and Inflation – Reuters

Turkey’s lira was a touch weaker after plumbing a series of record lows last week, as investor alarm about double-digit inflation has been heightened by President Tayyip Erdogan’s drive for lower interest rates.

Investors Are Taking Nothing for Granted About Malaysia’s Election – Bloomberg

While the ringgit is still Asia’s third-best performer this year, it lost ground this month as uncertainty increases before the May 9 vote.