Top Headline

Euro Firm, Stocks Soft Ahead of ECB Decision – Financial Times (subscription)

The euro is a touch firmer and Bund yields are trundling higher with Treasuries as traders await the latest monetary policy decision by the European Central Bank.

UK Budget Cold Comfort for Sterling, Boosts Building Firms – Reuters

Britain’s 2017 budget gave some meagre support to domestic stock and currency markets suffering from nerves over its plans to leave the European Union and the fallout for increasingly hard-pressed consumers.

Higher Yields Drive Dollar to Three-Week High vs Yen – Reuters

The dollar hit a three-week high against the yen, on course for a fourth straight day of broader gains after a strong ADP job number in the previous session broke 10-year US government bond yields out of a long-held range.

Brazil Government Denies Report on Forex Tax Increase – Reuters

Brazil’s central bank and finance minister denied a report that the government could raise taxes on foreign exchange transactions to help reach this year’s fiscal target.

Renminbi Hits Weakest Level in Nearly Two Months – Financial Times (subscription)

China’s currency hasn’t seen any major intraday moves this year, but gradual weakening in in March has brought the renminbi to its softest level against the dollar since mid-January.

Czech Inflation Surge Piles More Pressure on Currency Limit. Blame Potatoes – Financial Times (subscription)

The annual pace of inflation came in at some 2.5 per cent for February, the country’s stats office said, chipping away still further at the rationale for preventing rises in the koruna.

Le Pen and Euro Redenomination Risk, Charted – Financial Times (subscription)

Markets currently overestimate the risk of currency redenomination.

Maintaining the Human Touch – Profit & Loss

Despite the numerous technological advances in the FX industry in recent years, panellists at Profit & Loss Latin America emphasised the significant role that humans, and human relationships, still play in regional markets.

Most TCA False Due to Input Data, Says GreySpark – FX Week (subscription)

Transaction cost analysis results vary dramatically, depending on the data source and input used by the analytics provider.

Regulatory News

Mercer: Global Code Is a Great PR Stunt; Legitimises Front-Running – FX Week (subscription)

LMAX Exchange chief says the Global Code of Conduct is legitimising last look and pre-hedging and its authors are misrepresenting the nature of discussions in the MPG.

Questions About Loyalty to Trump Stall Mnuchin’s Treasury Picks – Bloomberg

Steven Mnuchin’s picks for the top ranks of the US Treasury are stalled due to resistance from White House aides, including one recruit whose Twitter account was scrutinized for potential criticism of Donald Trump, according to people familiar with the matter.

Gutting Dodd-Frank Is Hard, So Republicans Turn to Easier Things – Bloomberg

Republicans who write financial laws are starting to focus on other things.

Bank of Israel Under Fire Over Decade-Long Currency Intervention – Reuters

With the Israeli economy growing well, some experts and former policymakers say intervention is no longer necessary and may be pointless.

Chinese Exchanges to Resume Bitcoin Withdrawals Pending Regulator Approval – Coindesk

One of China’s ‘big three’ exchanges has announced its intent to begin allowing customers to withdraw bitcoin from accounts.

Company News

NEX Launches Regulatory Reporting Platform – Profit & Loss
NEX Optimisation, the NEX Group (Nex) company that helps clients simplify complexity and optimise their resources, has launched an end-to-end regulatory reporting platform ahead of new reporting requirements coming in under MiFID II.

Thomson Reuters Partners with Tradeweb to Deploy New MiFID II Solution – Finance Magnates

The newly launched new solution will help market participants meet MiFID II obligations.

Watkins Steps in as Gill Retires from BNYM – Profit & Loss

Dan Watkins has been appointed head of BNY Mellon Markets in Europe, the Middle East and Africa (EMEA).

JPM: 2017 to Be “Watershed” Year for FX Algo Usage – Profit & Loss

A new survey released by JP Morgan, which almost 200 institutional FX traders took part in at the end of last year, shows that although just 12% of respondents currently use algorithms for trading, 38% plan to increase algo usage in 2017. 

GTX Hires Schwartz for Agency Sales – Profit & Loss

Gain GTX has hired Ed Schwartz as managing director, agency sales, for its swap dealer business.

Pragma Goes Live in LD6 – Profit & Loss

Pragma has established a connectivity presence in Equinix’s LD6 data centre in London to service its international client base.

State Street Wants to Monetize Blockchain with Artificial Intelligence – Coindesk

Following a State Street report published last week on the long-term value of blockchain and other technologies, the bank’s executive vice president of global exchange, Lou Maiuri, elaborated on how his group is experimenting with new ways to capitalize on blockchain tech.

Market Savvy

Lira Reverses Gains After Turkey Extends State of Emergency – Financial Times (subscription)

Having finished February as one of the world’s best-performing emerging market currencies, Turkey’s lira has suffered a fresh blow in recent days, reversing all of its gains from that month.

Commodity Currencies Hit by Worst Oil Price Slump in a Year – Financial Times (subscription)

The Canadian and Australian dollars have slipped to two-month lows as global oil prices suffered their worst daily slide in 12 months late.

Brazilian Real Sinks on Report Government Could Raise FX Tax – Reuters

The Brazilian real sank to a session low on speculation that the government could raise taxes on foreign exchange transactions to deliver on this year’s fiscal target.