Top Headlines

Dollar Hits Seven-Week High vs Yen Ahead of US Jobs Data – Reuters

The dollar rose to seven-week highs against the yen, as investors awaited US jobs data that is likely to cement expectations of a Federal Reserve interest rate hike next week.

Sterling Steadies After Worst Fortnight in Five Months – Reuters

Sterling steadied after its weakest fortnightly performance in five months, with investors worried that Britain’s economy is heading for a slowdown on the back of sluggish consumer spending.

Draghi Comments Offer Support to Euro – Financial Times (subscription)

Mario Draghi helped support the euro and fuel a sell-off for German Bunds as mildly hawkish remarks from the European Central Bank president contrasted with the dovish tone of the ECB’s post-policy meeting statement.

Almost Three Quarters of French Against Ditching Euro – Reuters
Almost three quarters of French people are against leaving the euro zone currency bloc and returning to the franc, a survey showed, in bad news for far-right leader Marine Le Pen who advocates a so-called ‘Frexit’.

Renminbi Sends Mixed Signals – Financial Times (subscription)

Weaker, then stronger. Stronger, then weaker, Friday marks the sixth trading day since China’s two renminbi rates implied more currency weakness for the first time in two months – but the signals are very mixed.

China’s `Stable, Solid’ Yuan Faces Five Key Threats This Year – Bloomberg

Chinese policy makers have made it clear that they don’t want any surprises when it comes to the yuan.

Oil Slide Continues as Benchmark Falls Below $49 Per Barrel – Financial Times (subscription)

Renewed concerns about a supply glut sent ripples through the currency market and hammered energy shares on Wednesday, and an attempt at a rebound on Thursday faded.

Regulatory News

MEPs Seek ‘Extraterritorial’ Oversight on London Euro Clearing – Financial Times (subscription)

Regulators urged to make supervision a condition for allowing UK access after Brexit.

FCA: ‘Wait and See’ If MiFID Swaps Rules Are Ready in January – Risk (subscription)

Trading obligation consultation due by May, as industry urges clarity rather than speed.

Dealers at Odds with Fed on Variation Margin Relief – Risk (subscription)

Swap dealers and US prudential regulators have differing interpretations of the non-cleared margin relief granted on February 23 – a mix-up that may have resulted in large derivatives users continuing to trade under old collateral agreements, contrary to the wishes of the Federal Reserve.

Peirce, Fairfax Unlikely to Be Renominated as SEC Commissioners – Wall Street Journal (subscription)

Former SEC picks return to advisory roles, signaling end of renomination hope.

Germany’s Wolfgang Schäuble Sees Common Ground with US on Global Bank Rules – Wall Street Journal (subscription)

German finance minister set to meet US Treasury Secretary Steven Mnuchin next week.

Bank Stocks Slip as White House Confirms Intent to Revisit Glass-Steagall – Financial Times (subscription)

Financials don’t seem too happy to hear that bringing back Glass-Steagall is still on President Donald Trump’s policy to-do list.

Singapore’s Central Bank Completes Blockchain Payments Pilot, Nods at Digital Currency – Cryptocoins News

The Monetary Authority of Singapore (MAS) has successfully completed its blockchain inter-bank payments proof-of-concept project.

Company News

FX Strategists Set to Evade Research Crackdown, at a Price – Reuters

Banks’ currency trading arms believe they can exempt teams of strategists from new European rules on research by changing their job titles and imposing hard limits on what they can say in public.

CME Europe to Cut FX Market-Maker Scheme – FOW (subscription)

CME Europe told clients the FX schemes will not be renewed at the end of March.

Bitcoin Trust’s Silbert to Launch Classic Ether Fund This Month – Bloomberg

Barry Silbert, whose Bitcoin Investment Trust made it easier for mainstream investors to bet on bitcoin’s value, is looking to create a second trust later this month focused on a different digital currency: classic ether.

Market Savvy 

Looming US Rate Hike Pushes Emerging Stocks, FX to Weekly Loss – Reuters

Emerging stocks and currencies headed for a second straight week of losses as investors showed nerves ahead of next week’s all-but-certain interest rate hike in the United States and a gathering of global finance chiefs.

Commodity Currencies Rise as Most Asian Markets Traded Higher – RTT News

Commodity currencies such as the Australian, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session, as crude oil rebounded in Asian trades.

Shekel’s Record High Creates Headaches for the Bank of Israel – Financial Times (subscription)

The shekel has pulled back slightly from last week’s more than two-year high against the dollar, after the central bank reaffirmed its commitment to trying to slow the currency’s appreciation.