Top Headlines

Dollar Rises as Risk Appetite Returns, Investors Turn to Data – Reuters

The US dollar rose from a three-week low after trade war concerns waned and firm US economic data boosted the greenback against the yen and ushered in renewed risk appetite.

Sterling Slides After UK Inflation Data Unexpectedly Cools – Reuters

Sterling fell to a four-day low, erasing its gains for the week after British inflation unexpectedly cooled to a one-year low in March, raising doubts over a near consensus view that the Bank of England will raise interest rates next month.

FRTB Threatens Dynamic Forex Hedging of Capital Ratios – Risk (subscription)

Industry says recent Basel proposals are unclear and retain burden of pre-approval for hedges.

Euribor Trader Blames Rigging on French-Speaking ‘Big Fish’ – Bloomberg

A trader accused of illegally manipulating a key interest rate was only a bit player in a conspiracy run by more experienced bankers who used French to help obscure their actions, his defense attorney told a London court.

Broker Hid Yen Swaptions Basis After Trader Backlash – Risk (subscription)

Japan’s Totan had been first to show volatility basis; sources speculate traders wanted to avoid re-marking books.

London’s Fight to Remain a Financial Hub After Brexit – Bloomberg

There are five battlegrounds that could spell the difference between a modest and a major hit.

Banks Are Adding Crypto Trading to Their Resumes – Bloomberg

If clients want to play around with virtual currencies, banks will want to help them do it.

Regulatory News

New York Attorney-General Queries Cryptocurrency Trading Platforms – Financial Times (subscription)

New York attorney-general Eric Schneiderman said that his office is launching a fact-finding investigation into cryptocurrency exchanges, seeking disclosures of key information from 13 major platforms where digital currencies like bitcoin and ether are traded.

Fed’s New Capital Buffer Refocuses on Risk – Risk (subscription)

The US Federal Reserve’s proposed revisions to its capital framework would make risk-based capital requirements more volatile, bank analysts say, intensifying prudential and shareholder focus on risky assets while improving the comparative appeal of low-risk activities.

The Long March: ECB Struggles With Supervisory Convergence – Risk (subscription)

Anti-money laundering supervision and emergency liquidity assistance still run at national level.

Company News

CTA Struggles Continue in March – Profit & Loss

The flash estimate for the Barclay CTA Index, compiled by BarclayHedge, indicates a 0.34% loss in March. Year to date, the index is down 1.71%.

The Owner of the New York Stock Exchange Is Expanding Its Crypto Tool Aimed at Wall Street – Business Insider

The so-called Cryptocurrency Data Feed went live in March and is aimed at institutional trading firms, banks, and hedge funds.

City Heavyweight Joins Fintech Backed by JPMorgan and NEX – Financial News (subscription)

Mark Yallop, chairman of the FICC Markets Standards Board and board member of the Prudential Regulation Authority, takes up another finance role.

Market Savvy

Loonie Mocks Efficient-Market Theory as April Win Streak Lengthens – Reuters

The Canadian dollar is on course to strengthen in April for the eighth time in the last 10 years, a sequence strategists link to seasonal vitality in stocks and energy products, rewarding investors who trade on market patterns.

Asian Currencies Tread Water, Yuan Down After Surprise RRR Cut – Reuters

Most emerging Asian currencies were kept in check, as the dollar gained on firm US economic data and as US-China trade risks and tensions in the Middle East appeared to take a backseat for now.

Bitcoin’s Sudden Drop Snaps Seven Straight Days of Crypto Gains – Bloomberg

Keep in mind that the decline was only as much as 1.6 percent, the biggest intraday drop since April 12.