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.
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.
- Will the Market’s Gains Follow Cohn Out the Door? – The New York Times
- Wall Street Frets About Losing White House Friends as Cohn Exits – 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.
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 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.
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.
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.
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.
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.
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.
Popular cryptocurrency exchange Coinbase is facing two new class-action lawsuits, including one that accuses it of insider trading.
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.
Virtual currencies like bitcoin can be regulated as commodities by the US Commodity Futures Trading Commission, a federal judge ruled.
- CME Seeks to Intervene in Bitcoin Scam Case, Insists That Virtual Currencies are Commodities – Finance Feeds
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.
- Dodd-Frank Might Just Survive Republicans. Good – The Washington Post
- The Fine Print: What’s in the Senate Financial-Regulation Bill – Wall Street Journal (subscription)
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.
CLS is launching CLS Reporting – a reporting product for FX matched instructions that supports members with their MiFID II reporting requirements.
Record Currency Management has signed both the FX Global Code and the Local Government Pension Schemes (LGPS) Investment Code of Transparency.
The shattered volatility trade in February netted the CBOE massive gains in trading volumes year-on-year.
Soren Haagensen has joined smartTrade Technologies as director of sales for the Americas.
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.
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.
After years of being a one-way bet, South Africa’s rand seems to have turned a corner.
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.