Top Headlines

Rand Faces Worst Week Since 2015 as Zuma Fires Gordhan – Financial Times (subscription)

South African president Jacob Zuma’s dismissal of his well-regarded finance minister Pravin Gordhan has left the country’s currency on course for its worst week since 2015. 

Dollar Edges Up But Heads for Worst Quarter in a Year – Reuters

The dollar edged up and was on track for its strongest week in seven with an almost one percent rise, benefiting from a weaker euro as solid US economic data has contrasted with cooling euro zone inflation.

Sterling Slips Ahead of EU Response to Brexit, Revised UK GDP – Reuters

Sterling slipped against the dollar, as investors readied for the European Union’s official response to Britain’s letter of exit from the bloc, as well the final verdict on Britain’s economic output last year.

BlackRock Still Believes in the Pound – Bloomberg

As the UK starts the process of leaving the European Union, an investment director at the world’s largest money manager isn’t giving up on the pound. And he’s not alone.

Euro Exchanges Rate Could Tumble as ECB Tipped to Announce Third Quantitative Easing Extension – Pound Sterling Live

The euro could be about to be hit by a massive hammer in the shape of the European Central Bank with analysts at a prominent Scandinavian research house saying another round of quantitative easing is coming.

EM Currencies on Track for Stellar Quarter – Financial Times (subscription)

Emerging market currencies are on course for their second best quarter in the last five years as a faltering dollar and resilience in emerging market economies defy fears of a testing start to the year.

Peso Pushes Higher After Banxico Raises Rates – Financial Times (subscription)

The Mexican peso climbed to its highest level since the day following the election of Donald Trump after the country’s central bank raised interest rates.

China Says Has No Policy to Devalue Currency as Xi Prepares to Meet Trump – Reuters

China does not have any policy to devalue its currency to promote exports, Vice Foreign Minister Zheng Zeguang said, ahead of President Xi Jinping’s first meeting with US President Donald Trump amid tensions over trade.

China Outstanding Foreign Debt Falls to $1.42 Trillion at End-2016 – Reuters

China’s outstanding foreign debt fell to $1.42 trillion at the end of 2016 from $1.43 trillion at the end of September, the foreign exchange regulator said.

Dump Your Multiple Exchange Rates, Lift FX Restrictions, IMF Tells Nigeria – Reuters

The International Monetary Fund urged Nigeria to lift its remaining foreign exchange restrictions and scrap its system of multiple exchange rates in order to revive its economy, which is in its first recession in 25 years.

‘Color’ in an Electronic Market – Markets Media

In a complex electronic marketplace, buy side – sell side communication ain’t what it used to be.

Regulatory News

EU Commission to Address MiFID II Systemic Internaliser Loophole – The Trade

Commissioner Valdis Dombrovskis outlines plans to shut down trading loophole under MiFID II.

Clearinghouse Safety on CFTC Panel’s April Meeting Agenda – Bloomberg

Clearinghouse safety, the health of derivatives markets and cybersecurity are on the agenda for a CFTC Market Risk Advisory Committee April 25 meeting, the agency said.

European Rules May Cover Inter-Dealer Brokers: UBS – FOW (subscription)

The European Securities and Markets Authority could extend the scope of its trading rules to cover some of the functions fulfilled by inter-dealer brokers, UBS has warned.

Japan Regulators Initiate Global Fintech Framework, But Grapple with Fundamental Challenges on Homefront – MLex FS Core (subscription)

Japan’s financial regulators have initiated a multi-jurisdictional discussion on regulation of the financial technology sector focusing on blockchain technology, MLex has learned.

Company News

BrokerTec Europe Acquires e-MID SIM in Bid to Grow Footprint in Italy – Finance Magnates

BrokerTec has acquired a majority stake in e-MID SIM (e-MID), an Italian electronic central limit order book (CLOB) platform catering to interbank deposits and overnight indexed swaps (OIS).

Euronext Reiterates Interest in LCH Clearing Business – Reuters

Euronext Chief Executive Stephane Boujnah said that it was still willing to buy the LCH clearing business.

Moving Euro-Clearing “Easier Said Than Done” – FOW (subscription)

The forced repatriation of euro-denominated clearing into Europe from London would be problematic because the UK has a preferable legal system for conducting that business, an expert has warned.

Currency Risks Continue to Haunt Swiss Exporters: Chart – Bloomberg

The strong franc continues to agonize Swiss exporters, with 92 percent highlighting currency risks – putting it at the top of a list of worries in a survey for Euler Hermes.

Market Savvy

Crown Hits 18-Month Low, Cap Removal Impact Mulled – Reuters

The Czech crown fell to multi-month lows in the spot market and in euro rates implied in forward contracts as the central bank’s hard commitment to maintain a cap on its value comes to an end.

Asia Currencies Slip But Most on Track for Q1 Gains; Won, Taiwan Dollar Outperform – Reuters

Asian currencies eased but most remained on track for quarterly gains, supported by inflows and as the dollar was weighed down by uncertainty over the Trump administration’s economic policy agenda.

Rupee Set for Best First Quarter Since 1975 Thanks to Foreign Flows – Bloomberg

The currency, Asia’s best performer this month, has rallied 4.8 percent since December 31 as a thumping win for Prime Minister Narendra Modi’s party in state elections boosted bets for continuation of the government’s reforms agenda.