Top Headlines
G-20 Affirms No-Devaluation Pledge, to Consult on Currencies – Bloomberg
Finance chiefs from the Group of 20 agreed to consult closely on foreign exchange markets and reiterated past pledges to refrain from competitive devaluations.
Quick on the Draw: China Promotes IMF’s Currency at G-20- Wall Street Journal (subscription)
Playing host comes with privileges, even in the G-20.
For the second time since last summer, an avuncular, graying man has stepped out of Beijing’s shadows and calmed financial markets after a Chinese devaluation — but once again, his assurances came after nearly a month of turmoil and growing worry about the country’s economic health.
China Admits to Renminbi Image Problem – Financial Times (subscription)
China needs to eliminate market expectations of continued currency depreciation, the head of its central bank admitted on Friday as he argued the country had ample foreign exchange reserves despite recent depletions.
Investors clearly can’t make up their minds about where stocks are heading in 2016.
More Yawns than Yuan in China’s Late-Night Forex Trade – Reuters
In the fast-paced, high-risk world of foreign exchange trading, where trillions of dollars change hands every day, there’s a quiet corner of the yuan market where traders can get some shut-eye, despite China’s efforts to elevate its currency to the top table.
New Plaza Accord “Unrealistic”: PBOC Vice Governor – China Daily
There has never been a plan among G20 members to reach a deal similar to the Plaza Accord and such a plan is unrealistic, said Yi Gang, vice governor of China’s central bank.
UK’s Osborne: Sterling’s Fall a Reminder EU Referendum is ‘No Parlour Game’
Sterling’s decline this week is reminder that the outcome of Britain’s referendum on its membership of the European Union will have real economic consequences, finance minister George Osborne said on Friday.
It’s Getting Harder for Currency Traders to Make Money, Market Veteran Says – Bloomberg
The $5.3-trillion currency market is getting harder for traders to make money in as price changes that once took months or weeks now happen more quickly, says Hugh Killen, Westpac Banking Corp.’s head of trading for foreign exchange, fixed income and commodities.
Regulatory News
FSB to G20: Past Agreement Implementation “Imperative” – Profit & Loss
In a letter from Financial Stability Board (FSB) chair Mark Carney to G20 finance ministers and central bank governors in advance of the weekend G20 meeting in Shanghai, Carney notes “The imperative now is to implement fully and consistently the G20’s past agreements.”
Currency Curbs Cap Nigerian Investments – MoneyWeb
Ashburton Investments, the money-managing unit of Africa’s biggest bank by value, said Nigerian curbs on foreign exchange trading are limiting its ability to increase its holdings of stocks in the West African nation.
Company News
Banks Overvalue Derivative Portfolios, say Analysts – IFR (subscription)
A failure to take into account settlement failures means most large banks underestimate exposure to counterparty default risk, leading to overvaluation of derivative portfolios, according to a new study.
Barclays Set to Exit African Business – CNBC
Barclays’ new chief executive is planning to announce on Tuesday that the British bank has decided to exit its African operations in a bold move to refocus the bank on its core UK and US markets
SGX Submits Non-Binding Bid for Baltic Exchange – Straits Times
The Singapore Exchange (SGX) is in talks to buy The Baltic Exchange, a move that could bolster its derivatives business and strengthen Singapore as a maritime hub.
Market Savvy
G-20 Wants Governments Doing More, and Central Banks Less – Bloomberg
Finance chiefs from the world’s top economies committed their governments to doing more to boost global growth amid mounting concerns over the potency of monetary policy.
Yen Rebounds vs Dollar as Faltering Stocks Revive Safety Bids – Reuters
The yen rebounded sharply against the dollar on Monday, retracing its earlier fall on upbeat U.S. data, as a slide in equities put the “flight to safety” Japanese currency in favor.
Buffett: Politicians ‘Dead Wrong’ on Economy – Wall Street Journal (subscription)
Warren Buffett has a message for presidential candidates and others who are down on the U.S. economy: You are “dead wrong.”
The Wild Ride May Be Over: Volatility Normalizes for the First Time in 2016 – Bloomberg
Calm may have settled on financial markets for the first time in 2016.
Press Releases
EBS Market Moves to Real-Time FX Market Data – Profit & Loss
EBS BrokerTec announces today that it is redesigning its premium FX market data service, EBS Live, and will move to streaming real-time market data. The ‘EBS Live Ultra’ feed will “provide significantly improved price discovery and transparency, enhancing EBS BrokerTec’s status as the premier venue for market reference data in its core pairs”, the company says.
Thomson Reuters Reports Growth in Volumes, Connections – Profit & Loss
The number of FX market participants publishing and receiving trade notifications on Thomson Reuters trade notification network has grown 50% year-on-year through February 2016 as industry participants seek to realise the benefits of increased transparency and reduced costs and errors from automated trade notification and straight-through processing (STP).