Top Headlines

Euro Gains as Dollar Falls Back on Equity Bounce – Reuters

The euro edged higher and the dollar fell back, as a bounce in equity markets ended a strong run for the greenback in which nervous investors had rushed to reverse their bets against the US currency.

‘The Euro Is Not Strong’: Why the ECB Hawks Still Have Control – Financial Times (subscription)

The European Central Bank will inevitably draw attention to the dangers posed by a strong currency at next month’s policy meeting, but analysts at ING think Mario Draghi will once again struggle to slow its ascent, for a simple reason – “the euro is in fact not strong”.

Pound at Three-Week Low Below $1.38 After Brexit Transition Warning – Financial Times (subscription)

The British pound has fallen through the $1.38 level after the EU’s chief Brexit negotiator said that a transition period for the UK government is not a sure thing.

Dollar Edges Lower – Wall Street Journal (subscription)

The dollar edged lower as US stocks swung higher after a turbulent session.

Emerging-Market Investors Looking to Policy Makers for Answers – Bloomberg

All eyes will be on any responses by policy makers to the rout in stocks, currencies and bonds that has gripped much of the world.

EU Details Brexit Impact on Asset Managers – Markets Media

The European Union said that if there is no transition agreement on the departure of the UK, then UK entities will no longer be able to manage funds and market funds in the EU on the basis of their current authorisations from 30 March 2019.

Industry Butts Heads Over MiFID II SI Tick Size Regime – The Trade

Major exchange operators across Europe have urged EU financial authorities to ensure systematic internalisers (SIs) under MiFID II are subject to the tick size regime.

MiFID II: Like a Swan Gliding Through Water – Profit & Loss (subscription)

The continued implementation of Mifid II will be generally characterised by lots of hard work in the background and not much immediate action in the foreground.

Knee Jerk Responses to Higher Brokerage – Profit & Loss (subscription)

This is short sighted and indicates to me that too many participants are paying lip service to the idea of a fairer and cleaner market structure.

Regulatory News

Lagarde Says Regulation Should Help Prevent Wild Market Swings – Bloomberg

Last week’s turmoil in global markets means regulators should focus efforts on action that could prevent cross-market problems instead of paying more attention to certain entities or countries, International Monetary Fund Managing Director Christine Lagarde said.

Fed Economists Say Bitcoin Can’t Compete in World of Trust – Bloomberg

Bitcoin and other cryptocurrencies solve the problem of making payments in an environment where trust is broken – but it’s unclear whether that’s a dilemma that needs to be solved, Federal Reserve of New York economists wrote in a blog post.

Britain to Add Nigeria’s Naira to List of Accepted Trade Currencies – Reuters

Britain’s export finance agency will add the naira to its list of “pre-approved currencies”, allowing it to provide financing for transactions with Nigerian businesses denominated in the local currency.

Company News

Ullrich Rejoins State Street – Profit & Loss

David Ullrich has rejoined State Street as North American head of sales for FX Connect.

BNY Mellon Opens FX Trading Room in Seoul – Profit & Loss

BNY Mellon has opened an FX trading room in Seoul, Korea, offering liquidity both to domestic clients in Korea looking for exposure to major global currencies as well as to counterparties seeking to trade KRW across Asia-Pacific and around the globe.

FastMatch to Add Cryptocurrencies to FX Tape – FX Week (subscription)

FastMatch will add cryptocurrencies to its foreign exchange tape in the first quarter, and plans to support the trading of the asset class later in the year, as interest grows from institutional trading firms such as hedge funds.

Two Startups Are Joining Forces – And Together They Could Pose a Threat to Bloomberg – Business Insider

Symphony, a messaging service that has gained some traction among Wall Street firms, has been integrated into OpenFin, an operating system built for financial-services, the two companies announced.

Market Savvy

Bitcoin Finds a Bottom as Risk Aversion Grips Global Markets – Bloomberg

Bitcoin clawed its way back from the four-month low of $5,922 it touched on Tuesday, rebounding 53 percent to $9,069.

Warning Signs Flash for Kenya Currency Amid Political Crisis – Bloomberg

The currency of East Africa’s biggest economy rose 0.9 percent last week to 100.8 per dollar, a fifth straight week of gains and its best streak since 2015. It’s now near its strongest level since June 2016.