Top Headlines

Dollar Stabilises After Trump’s Intervention – Financial Times (subscription)

The dollar is regaining some poise after president Donald Trump sent the currency sliding yesterday with his surprising assertion that the buck is “too strong”.

Trump’s Currency Rulebook Seems to Give His Own Jawboning a Pass – Bloomberg

In President Donald Trump’s world view, currency manipulation is bad, except when he’s the one calling the shots.

Week of Upbeat Data Lifts Sterling to Six-Week High vs Euro – Reuters

Sterling rose to its highest level in six weeks versus the euro as a week of upbeat data soothed some investors’ worries about the impact of Brexit on the UK economy.

Investors Buckle Up as French Election First Round Looms – Financial Times (subscription)

Currency and bond market volatility rising as sense of sangfroid cracks.

Trump Drops Campaign Promise to Label China a Currency Manipulator – Bloomberg

President Donald Trump said he won’t brand China a currency manipulator, retreating from a core campaign promise, though he argued that a strong dollar is hampering the ability of American firms to compete.

Renminbi Firms to Strongest Level in April on China Trade Data – Financial Times (subscription)

China’s currency firmed to the strongest level against the dollar since the end of March following the release of trade data that showed exports rebounding to restore the country’s trade surplus.

Yen Holds at Five-Month High After Trump Warns Dollar Too High – Financial Times (subscription)

Donald Trump sent the dollar into a slide after complaining the currency has risen too high, and in early Asia trade the Japanese yen is still holding at a five-month high.

Lifting of Koruna Cap Encouraged By ‘Overbought’ Market: Czech National Bank – Financial Times (subscription)

The Czech National Bank wanted to take advantage of the “overboughtness” of the koruna to lift its longstanding currency cap earlier than expected, minutes from last week’s extraordinary policy meeting reveal.

Investors Prepare for a Volatile Week: Turkey Referendum Monitor – Bloomberg

Options contracts shows traders are hedging against price swings in the lira, particularly in the immediate aftermath of the vote.

Asia’s Worst Performing Currency Is Back on Investors’ Radar – Bloomberg

Asia’s worst-performing currency is starting to come back into favor.

Prime-of-Primes Play Down Fears of FX Systemic Risk – Euromoney

Prime-of-prime providers reject any suggestion that their existence could undermine the FX industry, but they acknowledge that further investment in pre-trade risk control will be required to maintain customer confidence.

More Regulatory Games – Profit & Loss (subscription)

There seems quite a buzz around the Senior Managers’ Regime (SMR) in the UK, specifically how people are seeking to pass the buck more often than a children’s game of Pass the Parcel.

Fed Drops ‘London Whale’ Probe – Wall Street Journal (subscription)

The Federal Reserve has shelved its threat of legal action against Bruno Iksil, the former JP Morgan trader at the center of the 2012 “London Whale” saga, according to a person familiar with the matter.

Kim Il Sung’s Birthday Party One to Watch for Korea Traders – Bloomberg

South Korean bond risk jumps as won, stocks take a breather.

Some Nigerian Banks Have Breached FX Borrowing Limit: Central Bank – Reuters

Nigeria’s central bank said some commercial lenders have breached its regulatory limit of foreign currency borrowings due to the recent fall in the value of the naira.

People Love Talking About Bitcoin More Than Using It – Wall Street Journal (subscription)

More than eight years after it started, bitcoin isn’t living up to early hype as the payment system of the future.

Regulatory News

Senator Warren Aide Said to Be in Running for SEC Job: Sources – Reuters

Bharat R. Ramamurti, a legislative aide for Democratic Senator Elizabeth Warren, is a contender for one of the vacancies on the US Securities and Exchange Commission, according to people familiar with the matter.

Trump Won’t Rule Out Second Yellen Term, Signaling Drift to the Mainstream – Reuters

President Donald Trump signaled he could be moving closer to the mainstream on monetary policy, saying he had not ruled out reappointment of Janet Yellen to a new four-year term as Fed chair as he considers his choices for the central bank. 

FinTech Promises to ‘Unbundle’ Banking, Says Carney – The Trade

FinTech’s promise arises from its potential to ‘unbundle’ banking into its core functions, according to the governor of the Bank of England, Mark Carney.

Yearning for Glass-Steagall Spells Need for New Bank Model – Financial Times (subscription)

Remedies to prevent repeat of 2008 financial crisis have not been seen to be applied.

Democratic US Senator Questions Deutsche Bank Over Trump – Reuters

A Democratic US senator pressed Deutsche Bank to release information about issues including President Donald Trump’s debt and any bank meetings with Trump administration officials, saying he had “great concern” about possible conflicts of interest.

Senior White House Adviser Departs for Business Lobby Group – Bloomberg

Senior White House budget adviser Marcus Peacock is leaving President Donald Trump’s administration to become the second in command at a high-profile business lobby group in Washington that’s looking to increase its influence.

Blockchain Smart Contracts Raise Systemic Risk Concerns – Risk (subscription)

Automated swaps margin payments could exacerbate systemic risks, regulators warn.

Company News

CME Europe, CME Clearing Europe to Shut by Year-End – Profit & Loss

CME Group announced that it intends to close its London-based derivatives exchange and clearing house, CME Europe and CME Clearing Europe, by year-end 2017.

Chinese Backers Planning Singapore’s Third Derivatives Exchange – Bloomberg

Singapore may be set to get a third derivatives exchange, this time backed by China.

Standard Chartered Loses Four? – Profit & Loss

At least four members of Standard Chartered Bank’s voice and trading team have apparently left the bank in the last two weeks according to market sources.

Mountain Joins Goldman? – Profit & Loss

Market sources tell Profit & Loss that Arthur Mountain has joined Goldman Sachs.

More Courters For KCG? – Markets Media

KCG Holdings appears to be in play as The Financial Times reports that other companies have been approaching the firm after competitor Virtu Financial’s unsolicited bid for the electronic market-maker became public on March 15.

Market Savvy

Asian Currencies Rise as Trump’s Comments Dent Dollar – Reuters

Asian currencies rose as the US dollar and Treasury yields retreated after President Donald Trump said the greenback was “getting too strong”. 

C$ Notches Six-Week High as Bank of Canada Turns Less Dovish – Reuters

The Canadian dollar strengthened to a six-week high against its US counterpart after the Bank of Canada turned less dovish, while comments by US President Donald Trump weighed on the greenback.

Interest Rate Doves Sidelined, Australian Dollar Soars as Jobs Data Surprise to the Upside – Financial Times (subscription)

The prospect of further cuts to Australia’s official interest rate has taken a knock in the wake of a surprisingly strong reading on the domestic labour market in March.