Top Headlines
China Premier Says Govt Will Cut Taxes, Streamline Administration, Keep Yuan Stable – Reuters
Chinese Premier Li Keqiang said on Thursday that the government would move to ease tax and paperwork burdens on companies, but added that the country is inexperienced in implementing such reforms and there would be challenges.
Brexit Fears Add to Pressure on Pound – Financial Times (subscription)
Investors are showing greater concern over the outlook for sterling than at any time in the last six years in a sign of increasing nervousness about the outcome of June’s referendum on Britain’s membership of the EU.
- `Brexit’ Fretting at Bank of England May Be About to Grow – Bloomberg
- Why Switzerland’s Franc May Be the Must-Buy Around `Brexit’ Vote – Bloomberg
The Currency War Is Over, Says HSBC – MarketWatch
With the dollar clocking significant declines against the euro and yen since the beginning of the year, it appears that the European Central Bank and the Bank of Japan—who along with the Fed comprise the primary antagonists—have run out of ammunition for driving their currencies lower, according to a team of currency strategists at HSBC.
SNB Purchased 86.1 Billion Swiss Francs in Foreign Currency in 2015 to Weaken Franc – Reuters
The Swiss National Bank (SNB) purchased 86.1 billion Swiss francs (62.58 billion pounds) in foreign currency last year to enforce a minimum exchange rate, scrapped in January, and influence exchange rate developments, according to its annual report published on Thursday.
US Dollar Index Rebounds on Fed Speak – Financial Times (subscription)
The US dollar was firmer against its major rivals on Wednesday, with a key measure having almost erased its losses in the wake of last week’s dovish-leaning Federal Reserve meeting.
Japan’s Bond Market Is Close to Breaking Point – Bloomberg
Signs of stress are multiplying in Japan’s government bond market, which is crumbling under pressure from the central bank’s unprecedented asset-purchase program and negative interest rates.
Brazil Currency Leads Latam Losses on Political Woes – Reuters
Brazil’s currency led losses in Latin American markets on Wednesday on concerns that a political crisis threatening President Dilma Rousseff may drag on longer than expected, while the central bank moved to weaken the real for a third straight day.
Former SNP Leader Alex Salmond Wants New Currency Argument – BBC
Former first minister Alex Salmond has called for a fresh look at the currency options for an independent Scotland.
Regulatory News
Credit Suisse, CIA-Funded Palantir to Target Rogue Bankers – Bloomberg
Credit Suisse Group AG founded a venture with Silicon Valley’s Palantir Technologies Inc. that aims to catch rogue employees before they can harm the bank, employing the expertise of a firm seed-funded by the U.S. Central Intelligence Agency that’s better known for identifying terrorists.
CSA Alerts Canadians: Beware Binary Options Platforms – MondoVisione The Canadian Securities Administrators (CSA) are increasingly concerned about the growth in the number of websites promoting offshore binary options trading platforms that are targeting Canadians. The CSA wants to make it clear: no business is currently registered or authorized to market or sell binary options in Canada.
Tom Hayes Libor Saga’s $1.2 Million Finale Leaves Nobody Happy – Bloomberg
If the sign of a good compromise is one where none of the parties are happy, then the judge presiding over Tom Hayes’s confiscation hearing got it spot on.
Company News
Credit Suisse Confusion on Costly Trades Casts Pall on Overhaul – Bloomberg
Credit Suisse Group AG Chief Executive Officer Tidjane Thiam dropped a bombshell on investors: Caught off guard by a buildup of illiquid trading positions, the CEO said the bank will probably post a second straight quarterly loss as it unwinds the trades.
Goldman Sachs Group Inc. put its head of U.S. inflation trading on leave as it reviews the way certain trades were booked, according to people familiar with the matter.
UK Banks Cut FX Transfer Costs by 22 Percent in Q1 – Reuters
British banks have cut the amount they charge for small international transfers between currencies by more than a fifth in the past three months as competition in the sector continues to grow, an index of market costs showed on Wednesday.
Market Savvy
Emerging Markets Lead the Great Rebound – Financial Times (subscription)
Emerging markets are back in positive territory after a sour start to the year as investors bet that central banks will support the global economy for an extended period.
Strong Yen Seen Persisting Into April – Nikkei News
The yen may remain on an upswing against the dollar in April and beyond, as Japanese companies are likely to continue repatriating overseas earnings after the March 31 fiscal year-end, market watchers say.
Press Releases
New Product Summary: CME Bloomberg Dollar Spot Index Futures
The Contract is based on the Bloomberg Dollar Spot Index (BBDXY). The Contract will incorporate standardized contract specifications and will be cash settled with a pricing basis quoted in index points.
CME Group Inc. Announces First-Quarter 2016 Earnings Release, Conference Call
CME Group Inc. will announce earnings for the first quarter of 2016 before the markets open on Thursday, April 28, 2016. The company has scheduled an investor conference call that day at 7:30 a.m. Central time.
GreenKey Introduces Financial Industry’s First Voice Quote Capture Tool via Symphony
GreenKey, creator of an award-winning voice workspace designed for financial market collaboration, today announced the release of the pilot version of the industry’s first “voice quote capture” tool. The tool will be offered for testing in its pilot form to enterprise customers of Symphony Communication Services, LLC, a secure communications and workflow technology company.
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 Scandinavia, TBD 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