Top Headlines

Dollar Set for Weekly Losses as Tensions with Pyongyang Rise – Reuters

The dollar nursed losses, on track for a losing week as continuing tensions in North Korea underpinned the perceived safe-haven Japanese currency.

These Assets Would Benefit from a Weaker Dollar – Bloomberg

President Donald Trump likes a weaker dollar, and some corners of the market agree. 

US Looks to IMF to Strengthen Its Forex Rates Oversight: Treasury Official – Reuters

The United States will reiterate to the International Monetary Fund its role in keeping a close eye on global foreign exchange rates policies at next week’s spring meetings of the international lender, a senior Treasury official said. 

Sterling Hits Six-Week High vs Euro, Slips Against Recovering Dollar – Reuters

Sterling hit a six-week high against the euro as jitters ahead of the first round of the French presidential election and a week of upbeat data in the UK gave the British currency some respite from Brexit worries.

British Pound Forecasts v Euro and Dollar Upgraded at the World’s Largest Investment Bank – Pound Sterling Live

Foreign exchange analysts at JP Morgan have upgraded their forecasts for the British Pound for the remainder of 2017 and the duration of 2018.

Trump’s Foreign Exchange Wobbles Risk Backlash at Home – Financial Times (subscription)

US president abandons campaign pledge to brand China a currency manipulator.

Documentation Fears Slow CNY FX Derivatives Growth – FX Week (subscription)

Foreign fund managers need clarity before market can take off, say banks.

FX Code Seeks to Drown Out Drumbeat of Scandal – Profit & Loss (subscription)

Following on the heels of the FX Fix scandal that rocked the FX industry over the course of the past few years, the Bank for International Settlements (BIS) set up a working group to draw up a Global Code of Conduct for FX market participants, by FX market participants.

Taiwan Asks Insurers to Adjust Forex Hedging as Local Currency Strengthens – Reuters

Taiwan’s financial regulator has asked local insurers to adjust their foreign exchange hedging to reduce the impact of the strengthening local currency against the US dollar on their earnings, according to a document from the regulator obtained by Reuters.

Regulatory News 

Derivatives Group to Consider Tightening Dealer Oversight with Risk Metrics – MLex FS Core (subscription)

The board of the National Futures Association next month will consider credit and market-risk metrics to be used by the industry self-regulator in tightening its monitoring of swap dealers, Chief Executive Officer Tom Sexton told MLex.

‘Central Bankers’ Bank’ Concerned About Effect of Monetary Policy and Post-Crisis Regulation – Financial Times (subscription)

The Bank for International Settlements has recommended that central banks become more active participants in the plumbing system that underpins the trading of government bonds to offset increasing market volatility.

MEPs Push for Probe Into Bank-HFT Trading Networks – Financial News (subscription)

Econ members are worried that efforts to create new trading networks could run counter to the spirit of MiFID II.

CFTC Taps Ex-Senate Committee Counsel for Legislative Affairs Office – Finance Magnates

Earlier in his career, Thornton worked as a Counsel for Delta Strategy Group focusing on the derivatives markets.

Washington Lawmakers Finalize New Bitcoin Business Rules – Coin Desk

Legislators in Washington state have put the finishing touches on new rules for businesses that offer digital currency services.

Company News

EBS to Enforce Ultra Participation Criteria from Mid-June – FX Week (subscription)

EBS BrokerTec will start calculating the 40/60 maker/taker ratios for EBS Ultra Live clients from May 15.

FIA Develops FCM Tracker – The Trade

The FCM tracker provides industry-wide view of customer funds in futures and swaps.

Banks Spent Close to $100 Billion on Compliance Last Year – The Trade

Annual compliance expenditure surges while RegTech spending is expected to reach $80 billion by 2020.

Market Savvy 

Asian Shares, Won Move South on Worries Over North Korea – Reuters

Japanese and South Korean shares fell while the won currency came under pressure, as rising tensions in the Korean peninsula dented confidence in the world’s economy.

Antipodean Currencies Rise After China Trade Data – RTT News

Antipodean currencies such as the Australian and the New Zealand dollars strengthened against their major counterparts in the Asian session, after data showed that China’s exports rebounded at a faster than expected pace, while growth in imports slowed in March.

C$ Weaker in Risk-Off Move After US Drops Bomb – Reuters

The Canadian dollar turned weaker after hitting a six-week high, with investors selling the loonie as geopolitical tensions took on more significance after news that the United States had dropped a massive bomb in Afghanistan.