Top Headlines

Dollar Hovers Near 14-Month Lows as Trade War Concerns Escalate – Reuters

The dollar hovered near a 14-month low against the yen as investors grew cautious about the outlook of the greenback after a top economic advisor to the Trump administration resigned stoking fears of a trade war.

Cohn Resignation Could Prove a New Departure for Markets – Financial Times (subscription)

The market’s negative instant reaction speaks volumes about Wall Street’s underlying confidence in the president’s judgment when left to his own devices.

How Currency Investors Are Bracing for a Full-Blown Trade War – Bloomberg

Some money managers have begun piling into traditional havens like the yen; others are trimming currency exposure altogether; and even those who’re betting not much will come from the row are hedging just in case.

Dollar Still Losing Battle with Euro Despite Fed Outlook – Reuters

The US dollar will retreat further over the coming year, giving way to an ascendant euro, according to a Reuters poll of strategists who said five or more Federal Reserve rate rises would be needed to significantly boost the greenback’s fortunes.

Sterling Slips to Three-Month Low vs Euro on Nagging Brexit Worries – Reuters

Sterling skidded to its weakest level against the euro since late November as investors worried about Britain’s ability to secure a favourable divorce deal with the EU, ahead of two Brexit-related speeches later in the day.

Yen Up, Mexican Peso Down on Cohn’s Departure from White House – Financial Times (subscription)

Japan’s yen strengthened past the ¥106-per-dollar mark while the Canadian dollar and Mexican peso weakened visibly in response to news that Gary Cohn, top economic adviser and proponent of free trade at the White House, would resign after losing a battle against tariffs.

Retreating US Dollar Set to Give Reprieve to Chinese Yuan: Poll – Reuters

The Chinese yuan is expected to slip only slightly over the coming year, a Reuters poll of currency strategists showed, as markets move to price in more US Federal Reserve interest rate hikes than the three currently expected.

Emerging Markets Honeymoon Will be Challenged in Coming Months – Financial Times (subscription)

The perception of global growth (outside the US) and the expectation of a still low neutral interest rate in the US has pushed international capital flows into emerging market economies.

Brussels and Paris to Rebuff May’s Brexit Hopes for City – Financial Times (subscription)

Theresa May’s plan to secure London’s place as Europe’s financial services capital after Brexit will suffer a serious setback when Brussels and Paris are to publicly rebuff her proposals to maintain the City’s access to the EU single market.

Euroclear to Move Holding Company from London to Brussels – Financial Times (subscription)

The move is the second part of a two-stage plan in reaction to Brexit after unveiling last month plans to build a securities settlement system for Ireland that did not rely on London.

Coinbase Hit with Two Class-Action Lawsuits, One Claiming Insider Trading – Market Watch

Popular cryptocurrency exchange Coinbase is facing two new class-action lawsuits, including one that accuses it of insider trading.

Why Are Banks Getting Away with Misbehaving? – The Independent

Banks and building societies incurred £33bn in misconduct costs between 2010 and 2014 – roughly equal to the sum they paid out in dividends to shareholders over the same period – new research suggests.

Regulatory News

Virtual Currencies are Commodities, US Judge Rules – Reuters

Virtual currencies like bitcoin can be regulated as commodities by the US Commodity Futures Trading Commission, a federal judge ruled.

Warren Vows Fight as US Senate Begins Debate on Dodd-Frank Rewrite – Reuters

Democratic Senator Elizabeth Warren promised to fight a US Senate bill easing bank rules introduced following the 2007-2009 global financial crisis as the chamber moved to begin debating the draft bipartisan legislation.

SEC Chairman Fires This Warning on Cryptocurrencies – Fox Business

Securities and Exchange Commission Chairman Jay Clayton said in an exclusive interview that investors should “think long and hard” before jumping into an initial coin offering, also known as an ICO.

Company News

CLS Reporting Unveiled – Profit & Loss

CLS is launching CLS Reporting – a reporting product for FX matched instructions that supports members with their MiFID II reporting requirements.

Record Signs Codes of Conduct – Profit & Loss

Record Currency Management has signed both the FX Global Code and the Local Government Pension Schemes (LGPS) Investment Code of Transparency.

CBOE FX Market Share at 15.4%, Futures and Options Volumes Driven by VIX – Finance Magnates

The shattered volatility trade in February netted the CBOE massive gains in trading volumes year-on-year.

Haagensen Joins smartTrade – Profit & Loss

Soren Haagensen has joined smartTrade Technologies as director of sales for the Americas.

Coinbase Plans to Start Cryptocurrency Fund – Financial Times (subscription)

Coinbase, the cryptocurrency wallet company, says it plans to start a fund that will let investors bet on four top digital coins – volatile assets that have brought outsize returns to some early buyers.

Market Savvy

Markets Welcome Korean Diplomatic Breakthrough – Financial Times (subscription)

South Korea’s currency lurched higher against the US dollar after news emerged of a significant diplomatic breakthrough between the two Koreas, with markets also displaying broader signs of relief on the easing geopolitical tension.

Signs That Traders Are Coming to Terms with Rand’s New Normal – Bloomberg

After years of being a one-way bet, South Africa’s rand seems to have turned a corner.

As the Philippine Peso Plunges, 10 Million Overseas Workers Cheer – Bloomberg

One bright spot from the Philippine peso’s slump to an 11-year low against the dollar can be found among the nation’s more than 10 million overseas workers.