Top Headlines

Euro Climbs to 2½ Year High After Draghi Refrains from Talking Down Currency – Reuters

The euro extended gains to a 2½-year high against the dollar after the European Central Bank president held back from talking down the currency and as markets worried about the impact of Tropical Storm Harvey on the US economy.

Sterling Bounces After Yellen Speech Though Outlook Bleak – Reuters

Sterling jumped to its highest level in four days after Federal Reserve Chair Janet Yellen made no reference to US monetary policy in her speech, though analysts warned the outlook remained bleak for the British currency.

Analysts Question Pound Negativity as Crucial Brexit Talks Begin – Bloomberg

The pound’s four-week slide versus the euro may be overdone, according to analysts at ING Groep NV and Nordea Bank AB, with both saying the currency pair is unlikely to reach parity.

Is Spoofing Now Easier to Prove? – Profit & Loss

A note from legal firm Crow & Cushing suggests that as well as the law on spoofing being tougher than it was before, actually proving the offence is potentially easier.

Fed Seeks Feedback on Libor Replacement – Profit & Loss

The Federal Reserve Board has requested public comment on a proposal for the Federal Reserve Bank of New York, in cooperation with the Office of Financial Research, to produce three new reference rates based on overnight repurchase agreement (repo) transactions secured by Treasuries.

China’s Markets Can’t Agree on How Good Nation’s Economy Is – Wall Street Journal (subscription)

Strong currency, stocks and commodities contrast with bond pessimism.

Why the Asymmetric Response Times? – Profit & Loss

A collation of suggested answers.

The Big Questions Facing Investors This Week – Financial Times (subscription)

US jobs data will be closely scrutinised, while the pound’s weakness will be closely watched.

Risk of Sharp Currency Moves Drives Investors Into Hedged ETFs – Reuters

Investors have been piling into currency-hedged equity tracker funds, seeking protection against big moves in foreign exchange rates.

Bitcoin ETF Now More Likelier than Ever, Says Bloomberg Analyst – Crypto Coins News

A bitcoin exchange traded fund (ETF) is looking more likely, given recent political events, according to Bloomberg’s Eric Balchunas.

Regulatory News

Janet Yellen and Mario Draghi Warn Against Regulatory Cuts, Trade Moves – Wall Street Journal (subscription)

The world’s top two central bankers warned that undoing post-crisis banking rules or pursuing protectionist trade measures threatens to unravel a fragile and hard-fought global economic expansion.

Wall Street Still Acts Like It Hasn’t Learned Any Lessons from the Financial Crisis –Business Insider

One of the hottest ‘Trump triumph trades’ late last year was the financial sector.

China’s Regulators Preparing New Rules for Digital Coin Offerings: Caixin – Reuters

Chinese regulators are preparing new regulations on digital coin offerings and may ban them until the rules are in place, the financial magazine Caixin reported, as interest in the new fundraising channel grows rapidly in a regulatory grey area.

Canadian Securities Administrators on Cryptocurrency Offerings – Finextra

The Canadian Securities Administrators (CSA) today published CSA Staff Notice 46-307 Cryptocurrency Offerings, which outlines how securities law requirements may apply to initial coin offerings (ICOs), initial token offerings (ITOs), cryptocurrency investment funds and the cryptocurrency exchanges trading these products.

Company News

FCA Grants APA Status to Firms Ahead of MiFID II – The Trade

Tradeweb, MarketAxess’ Trax, Bloomberg, NEX Regulatory Reporting and TRADEcho all received APA authorisation.

Banks Could Get Left Behind in Momentum Towards Blockchain, Says Ex-Barclays Boss – CNBC

Ex-Barclays boss Antony Jenkins told CNBC that banks “tend to be quite good at innovation” but lag behind with regard to “transformation”.

Executives Warn MiFID Has Firms Caught Like ‘Deer in Headlights’ – Bloomberg

Upcoming rules increasingly being discussed on earnings calls.

Asian Hedge Funds Relaxed About Mifid II – Asian Investor

But the looming EU rules could affect them, especially if they run portfolios on behalf of European fund managers.

Market Savvy

China’s Yuan Rises to Strongest in Over a Year on Firmer Guidance – Reuters

China’s yuan climbed to its strongest against the US dollar in more than a year, after the central bank raised its official guidance following a slide in the greenback.

Qatari Riyal Under Renewed Pressure Despite Credit Rating Reprieve – Financial Times (subscription)

S&P’s decision to remove Qatar from negative credit watch offered little support to the country’s currency, as the kingdom’s decision to restore diplomatic ties with Iran raised fears that its diplomatic spat with its Gulf neighbours is likely to get worse before it gets better.