Top Headlines

Euro Perched Near Six-Week Highs as Risk Appetite Intact – Reuters

The euro consolidated gains after hitting a six-week high in the previous session as investors waited for fresh catalysts to push the single currency higher.

Dollar Gains, Helped by Weaker Euro – Wall Street Journal (subscription)

The dollar rose against a broad range of currencies, reflecting weaker-than-expected European data and a drop in oil prices.

Sterling Edges Higher on Irish Border Report, End-of-Quarter Flows – Reuters

Sterling gained slightly against the dollar and euro, helped by a report that Britain will propose a new solution for the Irish border dispute holding up Brexit talks.

Libor’s Ascent Is New Culprit for Hedged Treasury Yields Near 0% – Bloomberg

For euro-, yen-based buyers, cost to shield FX swings rises.

Swaps Basis Leaps as LDI Funds Prep for Libor’s Death – Risk (subscription)

Gap between 30-year Libor and Sonia swaps surges 36% in three weeks.

Survey: NAFTA Cited as Main Driver of MXN this Year – Profit & Loss

The North American Free Trade Agreement (NAFTA) is the top macroeconomic issue that will affect the Mexican peso this year, according to the results of a Bloomberg foreign exchange survey announced today.

US, South Korea Near Agreement on Currency Manipulation – Financial Times (subscription)

The US is moving towards an arrangement with South Korea to crack down on currency manipulation and bolster transparency in foreign exchange practices, Trump administration officials said as they gave details of revisions to their free trade agreement.

Lawyers in Cartel Case Argue Against Antitrust Accusations – FX Week (subscription)

Depending on the type of relationship, the Sherman Act may or may not apply.

Wall Street Rethinks Blockchain Projects as Euphoria Meets Reality – Reuters

The casualties include projects by the Depository Trust & Clearing Corporation (DTCC), BNP Paribas and SIX Group, Reuters has found.

$1.6 Billion Coinbase Just Made a Big Move Toward Supporting a Bunch of Ethereum-Based Cryptocurrencies – Business Insider

Coinbase, the $1.6 billion cryptocurrency exchange that took bitcoin mainstream, will add support for ERC20 tokens.

Addressing Liquidity Challenges in T+2 Securities Settlement – Banking Tech

Dino Kos, Chief Regulatory Officer at CLS, explains how faster settlement in foreign exchange (FX) could be the solution.

Regulatory News

Esma Moves Forward with SI Tick Size Regime Amendment – The Trade

The EU financial regulator has decided it will enforce the tick size regime on systematic internalisers (SIs) under MiFID II, despite much controversy around the subject.

Atlanta Fed’s Bostic Warns Against Investing in Cryptocurrencies – Wall Street Journal (subscription)

Official also says policy makers should consider revisiting the Community Reinvestment Act.

Arrival of Final Bank Regulator Could Speed Up Easing of Rules – Wall Street Journal (subscription)

Senate confirmation of FDIC nominee will establish a trio of Trump appointees at key banking agencies

Company News

CLS Posts Record Volumes in February – Profit & Loss

February was the largest month ever for trading activity processed by CLS with the service handling $1.949 trillion per day, up 8% month-on-month and up a fraction over 30% year-on-year.

Barclays Commits to FX Global Code – FX Week (subscription)

The UK bank joins the handful of top-tier FX banks to have adhered to the principles.

Chicago’s CME Eyes Pole Position in Biggest Bond Market – Financial Times (subscription)

Deal for UK’s Nex Group would bring together cash and futures trading in US sovereign debt.

Redline Supports FX Forwards, NDFs on Cboe Platforms – Profit & Loss

Redline Trading Solutions has announced support for outright deliverable foreign exchange (FX) forwards traded on Cboe FX Markets and non-deliverable FX forwards (NDFs) executed on Cboe SEF.

Sarasini Promoted at smartTrade – Profit & Loss

Annalisa Sarasini has been promoted by smartTrade Technologies to the role of chief business development officer.

Market Savvy

China’s Central Bank Sends Yuan Surging – Wall Street Journal (subscription)

China’s central bank guided the yuan to its strongest level against the US dollar since its surprise devaluation more than 2½ years ago and market participants can’t agree on why it has appreciated. 

The How, What and Why of Spiraling Borrowing Costs for Aussie Banks – Bloomberg

Spillover from higher US rates, cross-currency plays a part.