Top Headlines
Dollar Puts Euro Under Pressure After US Bond Yields Rise – Reuters
The US dollar rose to near a two-week high after a rise in US Treasury yields to three percent supported the greenback, while a mixed picture from euro zone business surveys failed to help the single currency at the start of a busy week.
With World’s Biggest FX Trade Shackled, Investors Get Creative – Bloomberg
Euro-dollar exchange rate locked in four-cent range since January.
Sterling Stuck at Two-Week Low as Investors Cautious Over May Rate Hike – Reuters
Sterling slipped to a two-week low against the dollar as investors questioned whether the Bank of England would raise interest rates in May following weaker-than-expected economic data and cautious comments from governor Mark Carney.
Pound Pundits Puzzled by Carney Stick to Guns on May Rate Hike – Bloomberg
While currency pundits were jolted by Governor Mark Carney’s surprise hint that a rate increase by the Bank of England next month isn’t a foregone conclusion, they aren’t exactly doing an about-turn on their forecasts.
EU Council Shelves Limits on Structural Forex Hedge Exemptions – Risk (subscription)
Basel rethink on FRTB capital ratio hedging prompts fresh questions over EU implementation.
How Switzerland Lost a Currency Battle, but Won the War – Wall Street Journal (subscription)
The euro briefly exceeded 1.20 Swiss francs Thursday and again early Friday, a level it hasn’t reached in over three years, marking a milestone for Switzerland’s economy that was battered, but not broken, by its strong currency.
Could the SNB Exit Debacle Happen Again? – Profit & Loss (subscription)
If the Swissy did start strengthening again the SNB could very much be back in the market.
Mifid II Forces Fund Managers Into Sharp Research Cuts – Financial Times (subscription)
Asset managers have cut the number of investment banks and brokerages they use after a regulatory shake-up forced them to show how much they pay for research.
Crypto Trading Tumbles as Investment Scramble Unwinds – Reuters
Trading activity on cryptocurrency exchanges has halved from its December peak, industry data shows, as retail interest in the virtual coins declines and the prices of many remain far below their recent highs.
- ‘The Market Is Robust:’ Goldman Sachs-Backed Circle Doubles Minimum Bitcoin Trade Size to $500,000 – Business Insider
- Likely New York Fed President Says Bitcoin ‘Doesn’t Pass the Basic Test’ for a Currency – CNBC
Regulatory News
Bank of England Implements Sonia Reforms – Profit & Loss
The bank says its aim in reforming Sonia – the Sterling Overnight Index Average – is to strengthen a benchmark which is considered critical for the sterling financial markets.
Starting Gun Prepped in Race to Replace Carney at BoE – Financial Times (subscription)
Philip Hammond, UK chancellor, is preparing to fire the starting gun on the process to select the next governor of the Bank of England to replace Mark Carney next year.
FSB Publishes Conduct Risk Mitigation Toolkit – Profit & Loss
The Financial Stability Board (FSB) has published Strengthening Governance Frameworks to Mitigate Misconduct Risk, which provides a toolkit that firms and supervisors can use to tackle the causes and consequences of misconduct.
A Former Top Wall Street Regulator Turns to the Blockchain – The New York Times
Gary Gensler will be one of the most influential voices to weigh in on a series of questions that are likely to shape the future of the nascent industry.
Company News
State Street Appoints Global Exchange Sales Head – Profit & Loss
State Street has announced the appointment of Richard Irons as head of sales for Global Exchange in Europe, the Middle East and Africa (EMEA).
McDermott to Join SocGen as Americas FXPB Head – FX Week (subscription)
Brian McDermott is set to join Societe Generale on April 23, after resigning from Traiana.
Durrant Joins GTX – Profit & Loss
Henry Durrant has joined Gain Capital’s GTX – he started last week in London and is reporting to Steve Riley, head of liquidity at the firm.
Insch Kintore Launched as Jersey Domiciled Fund – Profit & Loss
Jersey-based Insch Capital Management has launched its Insch Kintore strategy as a Jersey Private Fund.
Market Savvy
Mexican Peso Eyes Worst Week in Four Months – Financial Times (subscription)
The currency endured another day of selling and is eyeing its worst week in four months as jitters over the upcoming presidential elections set off a bout of profit taking.
Lira’s Fate Tops Bill in Week of Emerging-Market Rate Decisions – Bloomberg
Traders remain more bearish on Turkey’s lira and Russia’s ruble than any of their emerging-market peers just as the two countries’ central banks gear up for rate decisions.
World Cup Fans from Colombia to Poland Are Cheering the Ruble’s Drop – Bloomberg
Among tournament qualifiers, their currencies have rallied the most against the Russian ruble over the past month amid the host nation’s world-leading losses.