Top Headlines

South African Watchdog Fines Citi 69.5 Million Rand to Settle Currency Rigging Probe – Reuters

South Africa’s Competition Commission has fined the local arm of Citigroup 69.5 million rand (£4.2 million) for its role in a foreign currency trading cartel, the regulator said.

South Africa Grants Barclays Africa Some Immunity in FX Rigging Probe – Reuters

South Africa’s competition watchdog has granted Barclays Africa conditional immunity from prosecution in return for its continuing cooperation in the rand currency rigging probe, the head of Competition Commission said.

Dollar Rises, Underpinned by Higher Treasury Yields – Reuters

The dollar gained, taking its cue from higher US Treasury yields as investors awaited minutes from the Federal Reserve’s latest meeting for signals to the pace of interest rate hikes.

Trump Gets a Little Help in Quest for Weaker Dollar – Bloomberg

President Donald Trump’s currency manipulation complaints are having a subtle, and sometimes not-so-subtle, impact in the language and behavior of some of America’s major trading partners.

Sterling Subdued Ahead of Bank of England Team’s Testimony – Reuters

Sterling fell against the dollar but made ground versus the euro, before Bank of England Governor Mark Carney and a number of his chief lieutenants testify in Britain’s parliament.

Euro on Defensive as French Election Tests Investor Nerves – Reuters

The euro was on the defensive, under pressure from fears that the French Presidential election could upset the status quo, as rising anti-establishment sentiment surfaced after last year’s Brexit and the US election.

The Eurozone Peripheral Nations Paid a High Price for Single Currency Folly – The Telegraph

How much worse off are the peripheral countries in the eurozone as a result of their decision a decade-and-a-half ago to sign up for the single currency? A lot? A little?

Yen to Hit Bottom at 120 Before Rallying, Economist Jen Says – Bloomberg

The yen will slump to 120 per dollar in six months as the Federal Reserve raises US interest rates but that’s about as weak as it will get, former International Monetary Fund Economist Stephen Jen says.

Australian Dollar to Crack 80 US Cents: Deutsche Bank – Sydney Morning Herald

Australia’s resurgent exports could push its currency to US80¢ and even beyond, Deutsche Bank’s chief economist Adam Boyton reckons.

HSBC’s Investment Bank Lifted by Rates and FX – Financial News

Growth in rates and foreign exchange trading helped to lift fourth-quarter and full-year revenues in HSBC’s global banking and markets unit.

Deutsche Bank Just Called the Three Worst Banking Jobs of 2017 – eFinancial Careers

Where don’t you want to work in 2017? Try M&A, US, European and Asian equities, or FX.

Regulatory News

Trump’s Man for the SEC: Time to Ease Regulation – Wall Street Journal (subscription)

Jay Clayton’s legal work has dealt with some of the biggest challenges agency has faced.

Currency Hedging Survives Esma UCITS Share Class Cull – JD Supra

The only type of hedged share classes which are considered by Esma to satisfy the principle of a common investment objective are currency hedged classes.

EU Financial Transaction Tax Shaken as Race for London Jobs Intensifies – Finance Magnates

Some of the main contenders for a new European financial hub are immune from the risks of a financial transaction tax – Dublin, Copenhagen and Amsterdam.

Nigeria Edges Closer to Devaluation with Dollar Move – Financial Times (subscription)

Nigeria’s central bank has edged closer to a full devaluation by making dollars available to private individuals at 20 per cent above the official rate.

Company News

CLS and TriOptima Hit $1 Trillion Mark in FX Compression – Profit & Loss

Settlement services provider CLS Group and Nex Group’s TriOptima say that counterparties have eliminated $1 trillion in gross notional value from their outstanding FX forward and swap portfolios using the TriReduce CLS FX Forward Compression Service.

DTCC-Euroclear’s Margin Utility Launch Delayed Again – The Trade

The DTCC-Euroclear margin transit utility service was initially set to launch in 2015 but has been hit by a number of delays.

BT Launches Radianz FX Express – Finextra

BT announced that it is linking up the world’s five main foreign exchange locations to help boost the competitiveness of its global financial industry customers.

Market Savvy

Asian Currencies in Retreat as US Dollar Firms, Stocks Higher – Financial Times (subscription)

Asian currencies were on the back foot as the US dollar climbed, while stocks were on track for a second straight day of gains.

Naira Forwards Fall on Devaluation Expectations – Reuters

Nigeria’s naira currency weakened against the dollar in the non-deliverable forwards market as expectations of a devaluation grew, while the rand slipped too before a key budget speech by the finance minister.

Rapid Rally in Egyptian Pound Sparks Expectations for a Stumble – Financial Times (subscription)

The Egyptian pound’s recent surge was the strongest fortnightly move in an emerging market currency in at least five years, according to Renaissance Capital, but the EM-focused bank has warned that the currency could be setting itself for another fall.