Top Headlines

China’s Central Bank Chief Sounds Warning Over Rising Debt – Bloomberg

People’s Bank of China Governor Zhou Xiaochuan sounded a warning over rising debt levels, saying corporate lending as a ratio to gross domestic product had become too high and the country must develop more robust capital markets.

Citi, Hoodless Lock Horns at Unfair Dismissal Tribunal – Profit & Loss

An unfair dismissal tribunal involving ex-Citigroup (Citi) FX trader Robert Hoodless is taking place at the East London Employment Tribunal.

It Is Dangerous To Start A Currency War – Forbes

A currency war is a situation where several nations use monetary policy to deliberately depreciate the value of their domestic unit of exchange. This undertaken in order to stimulate the domestic economy by making their exports relatively cheaper for overseas customers. The drawback is that imports become more expensive and will eventually lead to imported inflation.

Traders Get New Gauge of `Brexit’ Risk with Vote 3 Months AwayBloomberg

Next Wednesday marks exactly three months until Britain’s referendum on its European Union membership. That gives another opportunity for an insight into how concerned pound traders are about the outcome.

A Welcome Calm in the Global Currency Markets – Financial Times (subscription)

An eerie calm has descended over financial markets as the turmoil of the first few weeks of the year recedes into memory. Perhaps the most striking feature of this period has been the remarkable lack of volatility in the foreign exchanges.

RBNZ Starts Investigation Into Alleged Leak of Surprise Rate Cut – Bloomberg

New Zealand’s central bank has initiated a probe into an alleged leak of its surprise decision to cut the official cash rate earlier this month.

Wall St Investors Set Sights on Currency Markets – Gulf Times

US stock market investors will be watching currency markets this week for signs that the recent, related trends of a weakening dollar and a strengthening stock market will continue.

Brazil Central Bank Seeks to Weaken Real with Reverse Swaps – Reuters

Brazil’s central bank plans to auction up to $1 billion worth of reverse currency swaps on Monday, in an indication that policymakers are uneasy with recent gains in the real BRBY that could worsen the magnitude of the nation’s harshest recession in decades.

Regulatory News

Fed’s Dudley Nods to Challenges in Averting Another Financial Crisis – Wall Street Journal (subscription)

Federal Reserve Bank of New York President William Dudley said the financial system is “much more resilient” following the 2008 crisis, but he acknowledged the limits of bank supervision in preventing a similar collapse.

Industry Relief as Regulators Agree Substituted Compliance Rules for CCPs – Profit & Loss

There appears to be widespread relief from financial services firms that US and European regulators have approved a substituted compliance framework for central clearing counterparties (CCPs).

China Central Bank Vice Head Says Tobin Tax Still at Research Stage – Reuters

A tax that China looks to introduce to combat currency speculation is still being researched, vice central bank governor Yi Gang said on Saturday, damping expectations of any imminent policy step.

Market Participants Take Aim at CFTC’s Automated Trading Rules – Profit & Loss

Market participants were critical of the Commodity Futures Trading Commission’s (CFTC) proposed rules on automated trading at this year’s FIA Boca conference.

Company News

Moody’s: Foreign-Exchange Headwinds to be Less Severe for European Tobacco Companies in 2016

Pressure on European tobacco companies’ operating profit caused by foreign exchange (forex) volatility will ease in 2016, Moody’s Investors Service (Moody’s) has said today.

De Vleeschauwer Swaps Deutsche for Macquarie? – Profit & Loss

Market sources tell Profit & Loss that Charl de Vleeschauwer resigned from Deutsche Bank in Sydney last week.

Lesson Learnt, Chinese Developers Build Up Currency Defence – South China Morning Post

Unexpected yuan depreciation last year resulted in huge foreign exchange losses for Chinese developers with heavy exposure to bonds denominated in US dollar, but their situation may improve this year as these companies are tapping the domestic bond market and taking measures to avoid currency hits.

Market Savvy

Signs Are Flashing That Dollar Plunge Has Gone Too Far, Too Fast – Bloomberg

The dollar’s third straight weekly decline is triggering signals that U.S. currency weakness may be overdone.

BlackRock Isn’t Buying the Aussie’s Rally – Bloomberg

The Australian dollar is poised for its best month since October 2011 but the currency’s momentum isn’t strong enough to budge the world’s biggest fund manager.

Hong Kong Dollar Nears Strong End of Band as Peg Concerns Fade – Bloomberg

Hong Kong’s dollar rose for a fourth day toward the stronger end of its trading band against the U.S. currency on growing confidence in the future of the city’s 32-year-old peg and as the yuan stabilized.

Yen Finds Favour as Asia’s Appetite for Risk Wanes – Reuters

The safe-haven yen was broadly firmer on Monday, particularly against its New Zealand and Australian peers, as the mood turned sour with most Asian share markets down.

Press Releases

Elysium Technology Group Announces Domestic and International Growth

Elysium Technology Group (ETG) begins 2014 with six new institutional clients which expands their footprint into London, Israel, Hong Kong, Malta and New York.

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