Top Headlines

Dollar Edges Down as US Treasury Yields Slip on Geopolitical Fears – Reuters

The dollar fell in Asian trading, as concerns over tensions with North Korea and Syria weighed on US Treasury yields and offset expectations of US interest rate hikes.

Pimco Tempers Bullish Dollar View, Cuts Asia Bond Holdings – Bloomberg

Pacific Investment Management Co. has become less bullish on the dollar against emerging Asian currencies and says it trimmed investments in the region’s bonds as they are now relatively expensive.

Pound Climbs After UK Inflation Data – Financial Times (subscription)

Sterling received a slight boost after data showed the UK’s inflation rate remained steady at 2.3 per cent, with the currency rising as much as a quarter of a per cent against the dollar.

Currency Manipulation Has Another Meaning for Traders – Bloomberg

Politicians like to throw around the phrase “currency manipulation” when they feel that some other nation has developed an unfair trade advantage by way of an artificially weak exchange rate.

Flash-Crash Trader Jumps Into Currency Market When Others Flee – Bloomberg

Isaac Lieberman loves a good flash crash.

Yen Gains as North Korea, Syria Spark Geopolitical Jitters – Reuters

The safe-haven yen rose broadly in European trading, as investors considered a spectrum of risks including possible US action in Syria and North Korea, and a resurgence in previously written-off contenders in France’s presidential race.

Renminbi Globalisation Gauge Slumps to Three-Year Low – Financial Times (subscription)

Globalisation of the renminbi – a key long-term goal for Beijing – is at its lowest point in three years as offshore dealing in the Chinese currency continues to shrink.

South Africa’s Rand Seeks Floor in Asia Trading – Financial Times (subscription)

South Africa’s currency was fighting to find a floor in early Asia trade after the currency tumbled another 1.4 per cent.

Kiwi a Standout in Shifting Speculator Attitudes – Financial Times (subscription)

Traders have taken the most bearish stance since mid-2015.

Nigeria Naira Slides to 405 to Dollar on Black Market – Financial Times (subscription)

When it comes to Nigeria’s currency, mind the gap, again: the spread between the official and parallel market rates for the naira is widening once more.

Brexit-Related FX Mis-Selling Claims Hitting Hurdles – Euromoney

Claims of FX derivatives mis-selling have spiked since the EU referendum, although the limited number of court cases brought to date indicates the difficulties faced by companies who feel they were sold products not appropriate for their hedging requirements.

When It Comes to Investing, Human Stupidity Beats AI – Financial Times (subscription)

No matter how advanced technology becomes, natural instincts will have the upper hand.

Regulatory News

European Regulators Offer Brexit Sweeteners to Investment Banks – Reuters

A gap in EU financial rules is allowing member countries to compete to host the trading operations of London-based investment banks after Brexit by offering looser regulatory standards.

Central Banks Should Prepare for Policy Normalization: BIS Head – Reuters

Major central banks should prepare to normalize monetary policy as deflation risks have mostly disappeared from their economies and growth is picking up, the head of the Bank for International Settlements said.

A Trump Nomination Shows He’s Serious About Deregulation – Wall Street Journal (subscription)

President Trump reinforced how serious he is about reforming the regulatory state by nominating Neomi Rao to head the Office of Information and Regulatory Affairs.

Wall Street Cop Said to Purge Contractors as Budget Fight Looms – Bloomberg

Facing possible budget cuts under President Donald Trump, the Securities and Exchange Commission is eliminating dozens of contractors hired to help root out Wall Street fraud, said two people with knowledge of the matter.

The Tangled Web of Gary Cohn, Goldman Sachs and Glass-Steagall – Financial Times (subscription)

The barring of so-called universal banking could be of great benefit for the US bank.

The Fiduciary Rule Is Delayed. So Now What? – Wall Street Journal (subscription)

Answers to investors’ and advisers’ questions about how the Labor Department review may play out. 

China Regulator Warns Banks Away from Speculative Activity – Wall Street Journal (subscription)

China is taking another step to contain the growing risk in its financial system, warning banks against engaging in speculative activity that has created unhealthy asset bubbles and prevented money from flowing into a weak real economy. 

FCA Considers Regulating Blockchain – The Trade

The UK’s Financial Conduct Authority (FCA) is looking into separately regulating blockchain as some aspects of the technology do not fit with current regulation.

Russia Caves in on Bitcoin to Open New Front on Money Laundering – Bloomberg

Only a year ago Russia’s Finance Ministry was threatening jail time to anyone using digital currencies.

Company News

LCH Appoints Maguire as COO – Profit & Loss

LCH Clearnet has appointed Daniel Maguire as its COO, effective immediately.

Goldman Sachs’ 30-Something Global Head of FX Derivatives Trading Has Retired – eFinancial Careers

The latest Goldman partner to retire is Manikandan Natarajan, its London-based global head of FX derivatives trading.

CLS Group’s FX Volumes Advance in March on Higher Volatility – Finance Magnates

CLS’s FX volumes were noticeably higher in March, attributed largely to higher trading volatility.

Banks Calm on Eurex-LCH Basis Volatility – Risk

Volatility in the price of a euro interest rate swap cleared at Eurex relative to LCH has jumped since mandatory clearing began in Europe last year, but banks say they’re now more comfortable managing clearing house basis moves than in the past.

Market Savvy 

Yen, Aussie Dollar Up as Dollar Flatlines – Financial Times (subscription)

The yen and the Australian dollar are the standout performers as the US dollar takes a breather in Asian trade.

Brazil Currency, Stocks Seesaw on Reform Doubts – Reuters

Brazil’s currency and stocks seesawed, reflecting uncertainty over the passage of a proposed pension reform and the impact of sliding iron ore prices in China.

CEE: Crowns Leads Easing, Hungarian, Romanian CPI Below Forecasts – Reuters

Central European currencies mostly eased as investors shunned risky assets due to rising geopolitical risks, while Hungary and Romania published lower-than-expected inflation figures.