Top Headlines

Dollar Struggles After Worst Start to Year in Three Decades – Reuters

The dollar could recover only a little ground, after recording its worst start to the year in three decades on concerns the United States was poised to ditch a two-decade old “strong dollar” policy.

Trump, Trade Adviser Signal Displeasure with US ‘Strong Dollar’ Policy – Reuters

US President Donald Trump and a top economics adviser unleashed a barrage of criticism against Germany, Japan and China, saying the three key US trading partners were engaged in devaluing their currencies to the harm of American companies and consumers.

Merkel Rejects US Comments, Says Germany Cannot Influence Euro – Reuters

Chancellor Angela Merkel rejected a US trade adviser’s charge that Germany was using an “undervalued” euro to gain advantage, saying her government had always called on the European Central Bank to pursue an independent policy.

Frexit: Le Pen to Seek Euro Exit in Six-Month Negotiation Plan – Financial Times (subscription)

France’s far-right presidential candidate Marine le Pen will look to take the country out of the single currency area in six months, setting out a radical economic vision for the eurozone’s second largest economy should she be elected in May.

Japan Denies Trump’s Claims of Yen Manipulation – Financial Times (subscription)

Japan fiercely denied Donald Trump’s claims of yen manipulation as the presidential remarks triggered a slide in the dollar and raised one of Tokyo’s worst fears for the new US administration.

Japan Fin Min to Explain FX, Monetary Policy Stance at Meeting with Trump – Reuters

Japanese Finance Minister Taro Aso will explain the government’s stance on currencies and monetary policy at a meeting next week between Prime Minister Shinzo Abe and US President Donald Trump, a senior Japanese government source told Reuters.

Yuan’s Gain Has Surprised Trump, Incoming China Envoy Says – Bloomberg

Donald Trump probably hasn’t followed through on campaign pledges to label China a currency manipulator because the yuan’s been stronger than he anticipated, the US President’s pick as ambassador to China said.

Bloomberg Shutters Tradebook FX – Profit & Loss

Bloomberg Tradebook is exiting the FX business, winding down operations by March 1.

EC Could Use Thresholds to Squeeze London Euro Clearing – Risk (subscription)

Most euro clearing could be repatriated after Brexit without hitting other jurisdictions.

New Report Warns of “Clearing Orphans” – Profit & Loss

A new whitepaper issued by Contango Markets, a consultancy firm based in London, warns that buy side firms are increasingly being dumped by derivatives clearing firms that are re-evaluating their business models following changing cost pressures.

Regulatory News 

Trump Orders Put Financial Regulators in Tough Spot – Wall Street Journal (subscription)

Financial regulators are in the politically fraught position of trying to decide the extent to which they should assert their independence.

SEC and CFTC Avert EO – Markets Media

Monday’s executive order to reduce industry rules and regulation likely will not make a dent in existing Dodd-Frank and other major market regulations, say experts.

Off-Order Book Trades Exempt from Systematic Internaliser Assessments – The Trade

Esma clarifies which trades should be counted when assessing thresholds for systematic internaliser regime.

CFTC’s Bowen Backs Reg AT, Position Limits – FOW (subscription)

US CFTC’s Sharon Bowen has signaled her determination to keep pushing ahead with position limits and electronic trading reforms despite increading opposition.

UK Financial Regulators Aim for Better Transparency in New Shake-Up – Financial Times (subscription)

Companies under enforcement investigations by the UK’s financial regulators will be able to challenge proposed penalties without losing discounts for cooperation, as is currently the case.

ICE CEO Says Trump to Bring ‘Fundamental Change’ to Regulation – Wall Street Journal (subscription)

Jeff Sprecher says Trump’s appointees to lead agencies that oversee Wall Street have broad latitude to loosen rules.

Company News

EBS Announces New 5ms Data Feed – Profit & Loss

EBS BrokerTec will now be offering data via EBS Live Ultra at 5 millisecond intervals.

XTX Hands Buy Side New Liquidity Analysis Tool – Profit & Loss

XTX Markets has made XTX-ray, a tool designed to replicate how sell-side market makers analyse spot FX liquidity, available to buy side market participants.

Texier to Head RJO London Business – Profit & Loss

RJ O’Brien (RJO) has appointed Thomas Texier to the new role of managing director of its London-based affiliate, RJO Limited.

CME Tries to Sell Small Investors on Futures Trading – Wall Street Journal (subscription)

Exchange says its campaign is aimed at financially sophisticated individuals.

Research Analysts Culled at Top Investment Banks – Financial Times (subscription)

The ranks of investment bank research analysts have fallen by one-tenth since 2012, as tighter regulation and falling profits have forced financial institutions to cull their brigades of economists, bond strategists and stock pickers.

UAE Bank NBAD Offers Blockchain Payments After Tie-Up with Ripple – Reuters

National Bank of Abu Dhabi said on Wednesday it had become the first bank in the Middle East and North Africa to introduce real time, cross-border payments on blockchain, becoming the latest lender to use the technology.

Market Savvy

Won Hits Two-and-a-Half Month High after Trump’s Currency Comments – Reuters

The South Korean won hit a 2½ month high and some other Asian currencies held firm, after comments from US President Donald Trump and his trade adviser raised fears that the United States may be shifting away from a “strong dollar” policy.

Commodity Currencies Fall Amid Increased Risk Aversion – RTT News

Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session, as investors tracked the lackluster cues overnight from Wall Street and digested a raft of regional economic data.

Russian Rouble Dips; FinMin FX Purchases on Horizon – Nasdaq

The Russian rouble fell early, pressured by finance ministry plans to start buying foreign currency on the domestic market to preserve the country’s fiscal reserves.