Top Headlines
Dollar Builds on Three-Week High After Powell Testimony – Reuters
The dollar hit a three-week high after an upbeat assessment of the US economy by Federal Reserve Chairman Jerome Powell’s boosted bets on more interest rate hikes, while the euro edged lower before inflation data.
- Dollar Rises to Highest Level in Two Weeks – Wall Street Journal (subscription)
- Dollar Hits 12-Day High After Powell Testimony – Financial Times (subscription)
Sterling Slips for a Second Day as Brexit Nerves Grip Markets – Reuters
Sterling edged lower for a second consecutive day as investors moved to the sidelines before the publication of a first EU draft of a withdrawal treaty, while a dollar rebound also weighed on sentiment.
Deutsche Bank to Pay $240 Million to End Libor Rigging Lawsuit in US – Reuters
Deutsche Bank has agreed to pay $240 million to settle private US antitrust litigation accusing it of conspiring with other banks to manipulate the Libor benchmark interest rate.
CFTC Steps Up Enforcement Against Fraud, Market Manipulation – Wall Street Journal (subscription)
US derivatives regulators are expected to file “more than 10” fraud and market-manipulation cases in the next weeks as the Commodity Futures Trading Commission chairman implements his back-to-basics approach, according to a person familiar with the CFTC’s enforcement operation.
UK Financial Regulators Seen Endorsing Brexit Transition Deal: Industry – Reuters
Britain’s financial regulators are expected to formally endorse a Brexit transition deal in a bid to reassure firms concerned about disruptions to their operations after March 2019, the head of the Association of British Insurers (ABI) said.
All the Ways Regulators Plan to Tame Bitcoin – Bloomberg
It took one of the wildest investment manias in history to jolt them into action, but governments around the world are finally starting to regulate cryptocurrencies.
Swaps Users Face Tense Wait for Euribor All-Clear – Risk (subscription)
The euro swaps market’s main benchmark – Euribor – may have less than two years to live, but a verdict is not expected until the fourth quarter of this year.
Regulatory News
Jay Powell Hints at Faster Pace of Fed Rate Rises – Financial Times (subscription)
Jay Powell gave a markedly bullish assessment of the US economic outlook in his first congressional testimony as Federal Reserve chair, triggering speculation that he could preside over a quicker pace of interest rate increases as the economy accelerates.
- Fed Chairman Powell: Market Volatility Won’t Stop More Rate Hikes – CNBC
- Powell Backs Senate Plan to Raise Threshold for ‘Systemically Important’ Banks – Wall Street Journal (subscription)
Basel Chiefs Seek Disclosure on Sec Finance, Derivatives Collateral – FOW (subscription)
Committee wants disclosures of encumbered assets, which include collateral for repos, securities lending and derivatives.
German MEP Says Europe Must ‘Lead the Way’ on Crypto Regulation – Financial News
Comments from Markus Ferber follow warnings from regulators around the world about the potential dangers of digital currencies.
- China to Crack Down on Cryptocurrency Trading Loophole – Bloomberg
- South Korea Keeps Investors Guessing on Cryptocurrency Regulation – Reuters
Company News
Currency Traders Get Respite from Job Cuts While Revenue Plunges – Bloomberg
Headcount rose 1.2 percent last year for front-office staff covering G10 foreign exchange, including sales and trading personnel, the first increase since at least 2010, according to Coalition Development.
The Crypto-Futures Revolution Is Just Starting – Bloomberg
Futures linked to cryptocurrencies besides bitcoin may have just gotten a step closer to reality.
Market Savvy
HK Dollar Touches Weakest Level Against US Counterpart Since 2007 – Financial Times (subscription)
The Hong Kong dollar touched its weakest level against the US dollar since 2007, as a widening gap between interest rates in the two currencies depresses demand for the territory’s currency.
Currency Speculators Play Deaf as Analysts Yell ‘Year of the Yen’ – Reuters
BNP Paribas calls it “the year of the yen”. Morgan Stanley proclaims it’s the “land of the rising yen”. While, Citi has turned into a dollar bear with its latest report “we continue to holler – sell the dollar.”