Top Headlines

Dollar Climbs on Fed; Heads for First Weekly Gain of 2018 – Reuters

The dollar inched up to a 10-day high, after minutes from the US Federal Reserve’s January meeting showed policymakers confident in rising inflation and the need for interest rates to keep increasing.

17 Reasons for a Weak Dollar – Financial Times (subscription)

Here’s a conundrum: the dollar index has dropped 2.5 per cent so far this year, and no one seems to agree about why the US currency has been soft in 2018.

Sterling Steady at One-Week Lows, Supported by Rate Hike Expectations – Reuters

Sterling settled at a one-week low as markets grew more convinced that the Bank of England will raise interest rates again in May on the back of an improving economy, though already large bullish positions may temper any big move higher.

UK Starts Cryptocurrency Inquiry as Lawmakers Weigh Regulation – Bloomberg

UK lawmakers are launching an inquiry into cryptocurrencies to investigate their benefits and risks and consider how the new technology should be regulated.

BoE to Authorise EU CCPs ‘at 00:01’ on Brexit Day – Risk (subscription)

Central bank hopes plan to preserve access for EU CCPs will be reciprocated.

Deutsche Börse Sets Sights on Quarter of Euro Clearing Post-Brexit – Financial Times (subscription)

The new chief executive of Deutsche Börse has said he wants the Frankfurt exchange to win at least a quarter of the market for clearing euro interest rate swaps from London by 2019 and called on politicians for more support in its efforts.

Brexit Anxieties Grow Over London’s Market Infrastructure – Financial Times (subscription)

As Theresa May tries to navigate the political minefield of Brexit, the future of the key financial market infrastructure located in London is becoming increasingly urgent.

Bank Brexodus Gets Closer as Deutsche Bank Relocates Booking – Bloomberg

Deutsche Bank became the first large bank to publicly announce the beginning of a wholesale relocation of client business out of the UK in response to Britain’s vote to leave the European Union.

Building a Cryptocurrency Portfolio: Promise Over Peril – Profit & Loss (subscription)

Some firms still consider cryptocurrencies to be too risky to include in their portfolio.

Can Peer Pressure Work? – Profit & Loss (subscription)

2018 is a big year for the FX Global Code as it will celebrate its first anniversary – a date by which all participants are expected to have adhered to the code’s principles.

Algorithmic Trading Hits the Mark for Corporates – Tabb Forum

Algorithmic trading is becoming an indispensable tool for corporate treasurers as they seek new and efficient ways to manage their foreign exchange exposures.

Abolishing the Human Trading Role – Profit & Loss (subscription)

Markets need human traders to provide, if nothing else, a sanity check on prices.

Regulatory News 

Treasury Recommends Keeping Dodd-Frank Liquidation Power – Wall Street Journal (subscription)

The Trump administration recommended retaining the government’s power to seize and unwind a failing financial firm in a crisis, departing from some conservative Republican lawmakers and endorsing a plank of the 2010 Dodd-Frank financial law.

The Mifid II Rule Firms Are Not Abiding By – Financial News

Regulators need to look into the fact some large data firms and exchanges are not complying with rules to make trade data available for free.

Fed’s Quarles Says US Economy in ‘Best Shape’ Since Crisis – Bloomberg

Dismisses low-inflation worries and backs ‘gradual’ rate hikes.

Bitcoin Exchange Operator Charged with Lying to SEC About Hack – Bloomberg

The operator of a now-defunct cryptocurrency investment platform was charged with lying to US regulators to hide the fact that hackers stole more than 6,000 of his customers’ bitcoins.

Company News

Russell Nets FX Execution Cost Savings – Markets Media

Global asset manager Russell Investments said it has reduced its execution costs in foreign exchange trading by approximately two-thirds via a multi-layered netting approach.

Crane Joins MarketFactory – Profit & Loss

Al Crane has joined MarketFactory as director of sales, based in London.

Bitcoin Futures Contracts Pose Little Credit Risk to Cboe, CME: Moody’s – Value Walk

Analysts with Moody’s Investors Service see only “moderate” risk at the current low volumes.

Market Savvy

What Emerging-Market Bulls Say About a 3% Treasury Yield – Bloomberg

EM stocks, FX and local debt are still holding onto 2018 gains.

A Golden Opportunity Just Opened Up for Cryptocurrency Traders – Business Insider

Bitcoin is trading at a big premium in South Korea thanks to bullish news out of the country.