Top Headlines

Euro Gains, Dollar Drops, As Risk Appetite Revives – Reuters

The euro gained and the dollar dropped as last week’s strong US jobs numbers and receding fears over a trade war helped a rebound in risk appetite, with higher yielding currencies also performing well.

Sterling Rises on Struggling Greenback, Flat vs Euro – Reuters

Sterling rose, extending its rise from last week as a revival in risk appetite prompted investors to load up on the British currency though concerns over Brexit progress at an EU summit later this month capped gains.

Pound Traders Take Break from Brexit as Fiscal Policy in Focus – Bloomberg

Sterling has decoupled from political news, according to ING.

Japan Scandal Gives Fresh Boost to Yen Bulls Eyeing 100 Mark – Bloomberg

A deepening political scandal that’s put pressure on a top ally to Japanese Prime Minister Shinzo Abe has added a fresh reason for yen bulls to spy a move past 100 per dollar.

How the Hong Kong Dollar Became a Compelling Bet – Wall Street Journal (subscription)

One of the easiest ways to make money in the currency market right now is one that shouldn’t exist.

European Banks See Ficc Revenues Slip in 2017 – FX Week (subscription)

Low volatility and lacklustre client activity pounded European banks’ fixed-income, commodities and foreign exchange revenues in 2017, with fourth-quarter figures dipping more than 27% on average year-on-year.

UBS Plans to Shift Some Staff to Frankfurt After Brexit: Memo – Reuters

Swiss bank UBS has told employees that the majority of those affected by Brexit will move to Frankfurt from London, setting out what it called a decentralised approach to relocating staff.

Fund Managers Count Cost of Mifid Research Shake-Up – Financial Times (subscription)

Asset managers are setting aside tens of millions of dollars after agreeing to swallow the cost of paying for investment research following the introduction of wide-ranging European market rules this year.

Doing Away with a Rite of Passage – Profit & Loss (subscription)

This is something that eats away at the core values of the FX industry and, if left unchecked, could undermine the industry’s future.

‘We All Better Listen Up’: The CEO of an FX Trading Firm Says Wall Street Needs to Pay Attention to the Breakneck Growth of Crypto Exchanges – Business Insider

It might be cryptocurrency-companies that have the last laugh, according to David Mercer, the chief executive of LMAX Exchange.

Regulatory News

Keep Calm and Carry On with Policy Normalization, BIS Tells Central Banks – Reuters

The recent volatility in global financial markets should not deter top central banks from lifting interest rates or ending years of unprecedented stimulus, the Bank for International Settlements said.

Draghi Turns Spotlight on Riskiest Assets at European Banks – Bloomberg

The ECB is examining how banks value such holdings, called Level 3 assets, as part of a probe that’s set to wrap up next year.

Maybe the SEC Should Investigate February’s Wild Market Moves – CNBC

Some market watchers say it warrants an investigation.

Watchdogs Tighten Their Grip on Cryptocurrency Exchanges – Financial Times (subscription)

Financial watchdogs tightened their hold on the nascent cryptocurrency industry, in the latest sign that regulators are moving to restrain a freewheeling market that has drawn in retail investors.

BOE Says It’s Not to Blame for Century-Old US Financial Crises – Bloomberg

The Bank of England says its interest-rate changes in the early part of the 20th century didn’t inflame economic crises in the US at that time.

Company News

Thomson Reuters Launches Bitcoin Sentiment Data Feed – Profit & Loss

Thomson Reuters, through its partnership with MarketPsych Data, has launched a new version (v3.0) of its MarketPsych Indices (TRMI), which includes its first sentiment data feed for Bitcoin.

SGX FX Volumes Double YoY in February – Profit & Loss

The aggregate volume for SGX FX futures stayed above 1 million contracts, or approximately US$ 53 billion, for the full month, representing year-on-year (y-o-y) growth of 99.3%.

Hardingham Joins State Street – FX Week (subscription)

David Hardingham joins the US bank in London as a forwards trader.

Blankfein Says Report of His Departure Didn’t Come from Him – Bloomberg

The Goldman Sachs Group chief executive officer pushed back against a Wall Street Journal article that said he plans to step down as soon as the end of this year.

Market Savvy

Trade Tussle to Highlight Asia Deficits as Currencies Weaken – Bloomberg

The current-account deficit is making a comeback as a reason to sell some Asian currencies, according to Credit Suisse Group and Neuberger Berman Group.

Emerging-Market Investors Face a Week of Tumult as Trade War Looms – Bloomberg

Traders look to Russia to gauge effect of US metals tariffs.

When Will Stocks Tumble Again? Investors Look to Bitcoin for Answers – Wall Street Journal (subscription)

Investors are latching onto bitcoin as a new indicator for determining whether the stock market is headed for another downturn.