Top Headlines

Euro Bulls Suffer as Italy Stokes Political Uncertainty – Reuters

The euro was flat after initially weakening as an inconclusive election in Italy pointed to prolonged political uncertainty after a stronger-than-anticipated showing by right-wing eurosceptic parties.

US Dollar Outlook Darkens as Trade War Looms – Reuters

The US dollar could face headwinds if President Donald Trump’s proposals to impose stiff tariffs on steel and aluminium imports are enacted, with the biggest risk stemming from the possible flight of capital flows needed to finance ballooning US deficits.

Currency Markets Send a Warning on the US Economy – Financial Times (subscription)

Concerns over the dollar weakness are magnified by the decision to impose across the board tariffs on steel and aluminium.

Investors See May Giving in to Break Brexit Deadlock – Bloomberg

As the risk of another deadlock in the Brexit talks rises, pound traders seem to have seen it all before.

Asset Managers Pay £34 Million Compensation for Overcharging Investors – Financial News

Asset managers are to pay out £34m in compensation to investors after a probe by the UK regulator uncovered widespread evidence of funds charging expensive management fees for doing little more than tracking their benchmark.

SwapClear Stresses Global Clearing Volumes – Markets Media

The London Stock Exchange Group highlighted that only 7% of euro-denominated interest rate swaps that it cleared last year came from the European Union as regulators discuss possible relocation of clearing after Brexit.

Latest Crypto Scam Uses Virtu’s Trading History to Fool Users – Bloomberg

The latest scam in the cryptocurrency market comes from a non-existent coin that falsely claims to be backed by Virtu Financial, the electronic-trading firm that famously lost money on only one day from 2009 to 2014.

Last Look Declarations and Predictable Outrage – Profit & Loss (subscription)

The only way to guarantee it becomes less of an issue is greater transparency of action.

Going Greener – Profit & Loss (subscription)

Recycling is a good thing – just ask the environmentalists – but is it a good in FX?

Regulatory News

Foreign Banks Drawn Into Heated US Debate Over Dodd-Frank Reform – Financial Times (subscription)

Big foreign banks including Santander and Deutsche Bank are being drawn into an increasingly heated debate over reform of US banking regulation, as some Democrats warn that a bill going through the Senate could release “troubled and troubling” banks from tougher standards.

The Cryptocurrency Debate Dividing Central Bankers – Financial News

Faced with the cryptocurrency question, China and Russia are talking in direct contrast to central bankers from Canada and England.

Mifid Implementers Run Head First Into GDPR – Euromoney

Data collection and protection requirements appear to be in conflict under the two regimes, and some banks may even have to overhaul their new Mifid II systems to comply with GDPR.

Company News

Deutsche Joins Goldman in Change of FX Terms – Risk (subscription)

Deutsche Bank has joined Goldman Sachs in offering to share the benefit it enjoys if market prices move in its favour on a pending foreign exchange trade – a policy that sets the two banks apart from many of their peers.

FXSpotStream Claims New High in FX ADV, CME Steady – Profit & Loss

Following news last week that CboeFX and GTX had hit new records for FX average daily volume (ADV), FXSpotStream has now also reported a new peak in activity.

FastMatch Adds Bitcoin Market Data to FX Tape ‎- Finance Magnates

The new addition is modelled on similar approach for other FX instruments‎.

Market Savvy

Hong Kong Dollar at Weakest Level in 33 Years – Financial Times (subscription)

The Hong Kong dollar pushed to the weakest level against its US counterpart in over 33 years amid a persistent gap between US and Hong Kong interest rates.

Yen Strengthening and Trade Rhetoric Hit Japan Exporters – Financial Times (subscription)

Currency jumps after Kuroda hints BOJ may exit its massive stimulus in 2019.

How to Make Money Out of China’s National People’s Congress – Bloomberg

China’s biggest political event of the year is a key opportunity to gather valuable trading intelligence about the world’s second-largest economy.