Top Headlines

G20 Draft No Longer Rejects Protectionism or Competitive Devaluations – Reuters

The world’s financial leaders may no longer explicitly reject protectionism or competitive currency devaluations, a draft communique of their meeting next week showed, promising only to keep an “open and fair international trading system”.

Pound Hits Fresh Seven-Week Low Ahead of Budget – Financial Times (subscription)

Sterling is on the back foot amid political uncertainty, notes of gloom on the UK economy and increased expectations the US will tighten monetary policy.

Dollar Sags as Attention Turns to Coming US Jobs Report – Reuters

The dollar was a touch lower on Wednesday, its modest advance from the previous day bogging down as investors started to take a wait-and-see attitude ahead of Friday’s US jobs report.

Fed Takes Fear Out of Markets as Volatility Plunges in Bonds, FX – Bloomberg

From traders in the $13.9 trillion US Treasury market to those dealing currencies around the globe, signs are mounting that there’s little in the pipeline for them to get worked up about in the days ahead.

Yen Bears See a Roadblock in Trump’s Support for Detroit – Bloomberg

Tokyo strategists say President Donald Trump’s vow to bring manufacturing jobs back to the US is playing a role, and Japan’s dominance in the auto industry means any significant slide in the yen from here risks a storm of jawboning from the White House.

Snap AV: The SNB and Le Pen – Financial Times (subscription)

Credit Suisse ask an interesting question: What lies in store for the Swiss Franc if a President Le Pen were to emerge on May 8th?

Offshore Renminbi Weakens After Data Show China Trade Deficit – Financial Times (subscription)

The offshore renminbi weakened past its onshore counterpart following the release of China trade data valued in renminbi terms which showed a deficit for the first time since 2014.

German Minister Confident of Winning Euro Clearing Power from “Offshore” London after Brexit – City AM

A German economics minister has spoken confidently of winning euro clearing power from London after Brexit.

Asia’s Top Performing Currency May Hit Rough Waters – Bloomberg

The South Korean won, Asia’s best performing currency this year, is shrugging off a buildup in tension on the peninsula. The calm may not last.

Czech Exchange Rates Come Under Pressure – Financial Times (subscription)

The question is when, not if, the central bank scraps three-year-old currency limit.

Nigeria Seeks Return to Strong Growth with Sweeping Reform Plan – Reuters

Nigeria unveiled a sweeping economic recovery plan, including measures to reduce its dependence on oil and to relax foreign exchange restrictions, in a drive to pull Africa’s largest economy out of its first recession in 25 years.

Somalia to Print First Banknotes in 25 Years – Financial Times (subscription)

Somalia, a country where up to 98 per cent of local banknotes are fake, is about to embark on the massive task of taking back control of its currency.

Regulatory News

US Senate Panel Schedules Hearing for SEC Nominee Clayton – Reuters

Wall Street dealmaking attorney Jay Clayton will appear before the US Senate Banking Committee on March 23 for his confirmation hearing to become the next chairman of the Securities and Exchange Commission.

CFTC Keeps Doing Business with Only Two Commissioners – Bloomberg

President Donald Trump’s decision to withdraw a pair of pending CFTC nominations isn’t likely to incapacitate the agency, thanks in part to a good working relationship between the two remaining commissioners.

Trump Appointees Can Roll Back Bank Rules, Pence Economist Says – Bloomberg

The Trump administration’s initial efforts to attack financial regulations will include directing federal agencies to reverse changes that have been made through guidance rather than formal rule-making, a key aide to Vice President Mike Pence said.

Forex Brokers Eye US Market as Trump Vows to Deregulate – Reuters

Retail currency brokers are considering operating in the United States after a nearly seven-year absence, if President Donald Trump is able to carry through on his pledge to deregulate financial markets.

Brexit Threatens Clearing Model for UK Buy-Side – The Trade

The UK’s decision to leave the European Union may act as “the straw that broke the camel’s back for the clearing business” by increasing pressure on existing challenges the industry faces.

Central Banks Ratchet Up Foreign-Currency Reserves – Wall Street Journal (subscription)

Central banks around the world are increasing foreign-currency reserves, highlighting the fragile underpinnings of the global economic recovery despite a bullish mood in financial markets.

Company News

UK Companies Must Think Creatively to Cope with Sterling Risk – Financial Times (subscription)

With pre-Brexit currency hedges rolling off, consumers also face a struggle.

CTAs Post Strong February Performance – Profit & Loss

February was a strong month for managed futures strategies, with all three Societe Generale CTA indices producing performance in excess of 2%.

DTCC Expands Data Across Major Asset Classes – The Trade

The Depository Trust and Clearing Corporation (DTCC) has expanded its data products to cover all major asset classes.

Dalton Street Capital Upgrades Trading System with FlexTrade – The Trade

Dalton Street Capital in Sydney has upgraded its futures, equities and FX trading through implementing FlexTrade’s EMS system.

Market Savvy 

Turkish Central Bank Signals More Tightening Possible, Lira Weakens – Reuters

The Turkish Central Bank will closely monitor pricing behaviour and implement further monetary tightening if needed, its governor said, but the lira weakened in apparent disappointment he did not give a clearer signal on rates.

Asian Currencies Firmer as Investors Await US Jobs Data for Cues – Reuters

Most Asian currencies inched higher as the dollar struggled to gain traction ahead of US jobs data due later in the week.

The Australian Dollar Has Given Back All of Its Post-RBA Gains – Business Insider

After hitting a high of .7632 in the wake of the RBA’s March monetary policy meeting, the Australian dollar unwound those gains in overnight trade, succumbing to a lift in US bond yields and continued weakness in commodity prices.