Top Headlines

First German Inflation Data Presses Euro Lower – Reuters

A swing in sentiment against the euro dominated major currency markets for a second day, with weak initial readings of German regional inflation prodding the single currency back to nine-day lows against the dollar.

Europe Stocks Rallying with Currency Taken as Good Omen by Bulls – Bloomberg

The growing herd of European stock bulls can add the rising euro to their case.

Pound Hits Daily High as UK Triggers Article 50 – Financial Times (subscription)

Sterling has strengthened after the UK’s momentous decision to formally withdraw from the EU.

Dollar Edges Up to Nine-Day High, Buoyed By Euro Weakness – Reuters

The dollar edged up to a nine-day high against a basket of currencies, with the euro sagging as the European Central Bank showed no sign of stepping away from monetary easing anytime soon.

Czech Central Bank Holds Rates, Keeps Currency Limit in Place – Financial Times (subscription)

The last reliably dull monetary policy meeting in Prague has wrapped up with a decision to keep interest rates on hold at very close to zero, and to leave the upper limit on the koruna in place.

Renminbi’s Share of Global Payments Stuck in Sixth Behind Canadian Dollar – Financial Times (subscription)

The renminbi’s share of international Swift payments inched higher in February, but that growth came as payments in all currencies fell more than five per cent and still left the currency’s global prominence diminished over the longer term.

China’s Underground Bank Crackdown Risks Headaches in Hong Kong – Bloomberg

An estimated $1.8 trillion has left Asia’s largest economy from the start of 2015 through January 2017, as the yuan lost almost 10 percent and returns on onshore assets dropped amid slowing economic growth.

US Authorities Fine Deutsche Bank $775m for Libor Rigging – Finance Magnates

US Department of Justice also said that independent monitors would be installed.

CBOE Futures Exchange to Migrate to Bats Tech Platform – The Trade

CBOE plans to integrate with the Bats technology platform, starting with its futures exchange from 2018.

Singapore Exchange Said to Mull Tie-Ups as Deals Grow Harder – Bloomberg

Even as regulators crack down on yet another round of consolidation among exchange operators, at least one major bourse is still keen to pursue deals.

Regulatory News

Democratic Senators Seek Watchdog Investigation of Acting SEC Chief – Wall Street Journal (subscription)

Senators, led by Elizabeth Warren, claim Michael Piwowar has overstepped his authority.

SEC Pick Jay Clayton to Get Senate Panel’s Green Light Next Week – Wall Street Journal (subscription)

Senate Banking Committee to sign off on Clayton’s nomination Tuesday; he would still need to be confirmed by full Senate.

ESMA Tightens Benchmark Rules – The Trade

The European Securities and Markets Authority (ESMA) has tightened rules around financial benchmarks to improve transparency and reduce manipulation.

The Merger Everyone’s Talking About That Will Never Happen – Wall Street Journal (subscription)

The idea of combining the CFTC with the much larger and more bureaucratic SEC remains politically contentious.

Trump’s Free Hand on Bank Deregulation – Wall Street Journal (subscription)

The Trump administration has the power to enact substantial bank deregulation on its own without legislation.

ICE Warns Clients Global Regulation Could Harm Business – The Trade

The Intercontinental Exchange (ICE) has said current regulations and the possibility of new regulations could ‘adversely’ affect its business and ability to compete in certain markets.

MiFID II: A Noble Vision Beset By Troubles – Financial News

The risk with the EU’s new trading rulebook is that its problems could surface much quicker than its benefits.

CFTC’s Bowen Sees Possible Common Ground with Giancarlo on Automated Trading – MLex FS Core (subscription)

Sharon Bowen, the Democratic member of the US Commodity Futures Trading Commission, said she sees possible common ground with chief Christopher Giancarlo on the most contentious part of the automated trading proposal.

Company News

UBS, JP Morgan Carry off Top Honours in Digital FX Awards – Profit & Loss

For the second year in succession, UBS and JP Morgan have won the top two prizes in Profit & Loss’s Digital FX Awards, which were presented at a dinner sponsored by LMAX Exchange in London last night.

JP Morgan Scours Europe for Best Post-Brexit Home – Wall Street Journal (subscription)

US bank is checking out as many as eight cities including Paris, Frankfurt, Luxembourg and Dublin.

Margin Rule Mismatch Spawns New VM Funding Cost for Buy Side – Risk (subscription)

Buy-side derivatives users are facing a new funding cost generated by a settlement timing mismatch under the new derivatives margin rules.

Banks Rush to Protect Against Data Breach Fines – Risk (subscription)

Cost of implementing GDPR ‘could reach hundreds of millions’ for largest banks.

OTC Exchange Network Joins Blockchain Trade Association – FX Week (subscription)

OTCXN says it is essential to gain the support of regulators and lawmakers if blockchain is to be widely adopted.

Fintech Solutions for Currency Hedging – Fi News

Two fintechs firms based in Switzerland plan to offer the services that banks have so far reserved for their large corporate customers.

Market Savvy

Rand Begins to Rally on Reports ANC Leaders Support Gordhan – Financial Times (subscription)

The rand reversed its early losses to swing into positive territory after reports that senior members of the country’s ruling African National Congress had moved to block the President from sacking his finance minister.

Asian Currencies Edge Lower as Dollar Shows Resilience – Reuters

Most Asian currencies edged lower versus the dollar, as weakness in the euro helped bolster the greenback, with China’s yuan touching its lowest level in nearly a week.

Canadian Dollar Strengthens as Oil Rallies – Reuters

The Canadian dollar strengthened against its US counterpart as the price of oil, one of Canada’s major exports, rose for the second day in a row.