Top Headlines

BNP Paribas Sued by Ex-Spot Currency Trading Head De Groot – Bloomberg

BNP Paribas SA became the latest bank to be dragged into a spate of foreign-exchange-related employment lawsuits after its former head of spot currency trading sued the lender.

Fed’s Global Concern Signals Barriers to Next Rate Increase – Bloomberg

Federal Reserve officials last month held a vibrant debate that pitted the steady U.S. expansion against heightened global risks and reached a broad agreement on a go-slow strategy that reduced the odds of a rate increase in the first half of the year.

 

BlackRock Considers Launching Currency-Hedged Global Bond ETF in Tokyo – Reuters

U.S. asset manager BlackRock is considering launching an exchange traded fund (ETF) on the Tokyo Stock Exchange (TSE) that will allow Japanese investors facing negative yields at home exposure to international bonds without currency risks, a senior BlackRock executive told Reuters.

ECB Underlines Readiness to Boost Stimulus If Risks Arise – Bloomberg

European Central Bank officials underlined their readiness to ease monetary policy even further should fresh risks to the economic outlook arise.

Clinton Attacks Sanders over Banks Break-up Proposal – The Financial Times (subscription)

After a bruising loss in Wisconsin, Hillary Clinton is hitting back at Bernie Sanders, alleging that the Vermont senator is not ready for the White House.

Another Reason Investors Should Fear a Strong Yen – The  Wall Street Journal (subscription)

The yen is looking perilously strong, which isn’t just bad news for Japan’s exporters. It also puts pressure on government finances at a time when investors are praying a scheduled tax increase gets shelved.

It’s Complicated: Glenn Stevens Weighs in on Currency Wars – The Australian

Australia’s central bank finally came off the sidelines of the global currency wars this week to say a higher dollar could complicate the economic recovery Down Under, while outing other central banks as the main culprits for the local currency’s appreciation.

Regulatory News

Wall Street Is Edging Toward Win on Derivatives Capital Rule – Bloomberg

Wall Street is making progress in its effort to soften a crisis-era capital requirement that banks argue places onerous expenses on trading.

 

Company News

Barclays Becomes the First Big UK Bank to Back a Digital Currency Firm – Business Insider

Barclays has become the first big British bank to form a partnership with a digital currency firm, social payments app Circle, which runs partly on bitcoin’s blockchain network and launched in the UK on Wednesday.

Hedge Fund Gávea Posts Heavy Losses in March on Asia, Brazil Bets – Reuters

Two funds managed by Gávea Investimentos Ltda, the hedge fund run by former Brazilian central bank President Arminio Fraga, posted heavy losses in March as bets on declining prices for financial assets in Asia and Brazil soured.

Chinese Companies’ Foreign Exchange Losses Soared Last Year – South China Morning Post

China’s yuan is depreciating and brought huge volatility to weigh on companies’ books.

Market Savvy

Yuan’s Dual-Moves Policy Spurs Warning of Emerging-Market Risks – Bloomberg

The Chinese central bank’s appetite for trade-weighted weakness in the yuan appears to be increasing, according to Australia & New Zealand Banking Group Ltd., spurring warnings of increasing risks to emerging-market currencies.

Crisis? What Crisis? – Profit & Loss

Much has been made of the recent weakness of sterling. Today, the Bank of England’s trade-weighted sterling index has dropped to its lowest level (83.89) since December 2013. The sell-off is inevitably being at least partially attributed to fears that the UK will leave the EU – or Brexit as it is commonly known.

Sorry, Trump, But Chinese Currency is Actually Way Overvalued – Barron’s

One of the finer ironies of this extraordinary U.S. election is that Donald Trump is a former star of a reality show. Much of what he says is far removed from anything that objectively would be deemed as reality.

Press Releases

BM&FBOVESPA Publishes March Market Performance – MondoVisione

The number of spot United States Dollar (USD) transactions performed in the Brazilian interbank market and registered for settlement with BM&FBOVESPA’s Foreign Exchange Clearinghouse totaled 1,851 in March, for an aggregate value of USD 34.32 billion, compared with 1,640 and USD 19.14 billion in February.

Commencement of Proof of Concept Testing for Blockchain Technology

Japan Exchange Group, Inc. (JPX) and Nomura Research Insitute have agreed to jointly begin conducting proof of concept (PoC) tests for blockchain, or distributed ledger, technology.

Industry Events

FOW: Derivatives World, 12-13 April in Hong Kong

FX Week FX Invest North America, 12 April in Boston, MA

Profit & Loss Forex Network London, 14 April in London, UK

Profit & Loss Latin America, 20 April in Mexico City

ACI World Congress 2016 – Indonesia, 26-30 April, Jakarta

Eurofinance:  Asia Treasury, 18-20 May in Singapore

Profit & Loss Forex Network New York, 26 May, New York City

FIA: IDX 2016, 7-8 June in London, England

Profit & Loss Forex Toronto, 9 June, Toronto

Profit & Loss Scandinavia, 13 September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL