Top Headlines

FX Volatility Sparks Trading Surge with Signs of More to Come – Bloomberg

Price swings in the $5.1-trillion a day currency market have jumped this month to the highest since November 2016 on a monthly basis, according to a JP Morgan gauge.

Dollar Falls Below ¥108 for First Time Since September in Broad Dip – Financial Times (subscription)

The US dollar has come under pressure, with traders shifting away from the greenback as the bout of volatility in global financial markets subsides.

Euro Gains as Stronger Stocks Hurt Dollar; Yen Hits Five-Month High – Reuters

The euro gained as gains in global equity markets encouraged traders to sell the dollar and tiptoe back into riskier assets.

Sterling Climbs After UK Inflation Beats Expectations – Reuters

Sterling strengthened as data showed British inflation unexpectedly stayed close to its highest levels in six years in January, firming up investors’ bets that the Bank of England will raise interest rates again in May.

Analysts Embrace Pound Strength Versus Euro as Parity Calls Fade – Bloomberg

The Bank of England’s hawkish rhetoric on Thursday has caused Toronto Dominion Bank to double down on its call for a rate increase in May and bet on more strength in the pound versus the euro.

What Causes Forex Correlation Swaps to be Mispriced? – Risk (subscription)

UBS quants show prices can differ by up to 25 correlation points if products modelled accurately.

Exchanges and FCMs Clash Over Bitcoin Clearing Carve-Out – Risk (subscription)

Market participants say CME, CBOE should clear bitcoin futures separately.

Why MiFID’s New Trading Venues Passed on Undercutting Exchanges – Bloomberg

Here’s another quirk from the early days of MiFID II: algorithmic traders like Virtu Financial are deliberately opting not to use a pricing advantage.

Regulatory News

Trump Administration Proposes Fees for Futures Industry – Wall Street Journal (subscription)

The White House proposed levying fees on derivatives users to bolster the Commodity Futures Trading Commission’s 2019 budget, an idea that may be dead on arrival because of industry opposition.

Tighter Monitoring for Computer Trading Demanded – Financial Times (subscription)

The Bank of England’s Prudential Regulatory Authority added that it wanted the firms it regulated to apply the rules to the unregulated spot foreign exchange market from the second half of this year.

Europe’s Top Regulators Issue Cryptocurrency Warning – Financial News

Europe’s three top financial regulators have issued a joint warning to consumers on the risks of investing in cryptocurrencies, citing their extreme volatility and absence of legal protection.

Crypto Fanboys Celebrate Surprising New Hero: A Washington Regulator – Bloomberg

Traders often skeptical of government praise CFTC’s Giancarlo.

Company News

CLS Releases FX Forecast Data Product – Profit & Loss

CLS is releasing a new foreign exchange forecast data report as part of its suite of data products.

Crypto ‘Unlikely to Disappear’, Says Internal Report Attributed to JP Morgan – Coin Telegraph

In an extract from what is allegedly the banking giant’s executive summary on cryptocurrency, the company appears bullish on crypto’s future.

Dubai Trader Gets First Middle East License in Cryptocurrencies – Bloomberg

Dubai gold trader Regal RA is the first company in the Middle East to get a license to trade cryptocurrencies, the Dubai Multi Commodities Centre said.

Market Savvy

Rand Holds on to Recent Gains After ANC Moves to Oust Zuma – Financial Times (subscription)

The South African currency dipped early but held on to most of its recent gains as investors awaited news on whether the country’s president will agree to resign.

Don’t Just Blame the Dollar for the Yuan’s Recent Advance – Wall Street Journal (subscription)

The Chinese yuan’s value has surged to a nearly two-year high on a trade-weighted basis, a sudden shift from recent months.