Top Headlines

Speculators Bullish on Mexican Peso for First Time Since 2015 – Financial Times (subscription)

The Mexican peso has shed pretty much all its Trump-election risk premium, becoming one of the best performing major currencies in 2017.

Euro Eases from Five-Month High – Financial Times (subscription)

The euro eased in Asia, roughly 24 hours after touching its highest level in just over five months after the first round of voting in the French election.

Global Market Response to French Vote: By the Numbers – Financial Times (subscription)

The response to the first round of the French election has been fierce across just about every asset class.

Resurgent Euro Keeps Sterling Under Pressure – Reuters

Sterling dipped against the euro, kept under pressure by the single currency’s renewed strength as relieved investors turned optimistic on Europe after the first round of the French presidential election.

Euro Surges on French Election, While Dollar Slides – Wall Street Journal (subscription)

The euro notched its biggest daily gain in nearly a year after the first round of the French election eased concerns about the future of the currency, while the US dollar fell to its lowest level since early November.

Yen Investors Have Reason to Question Haven Status – Financial Times (subscription)

Japan’s currency has fluctuated amid worries about nearby North Korea.

London Still Ranks First for Offshore Yuan Trading, with Singapore in Fifth Place – Straits Times

London has retained its position as the dominant offshore hub for trading the Chinese renminbi (RMB) or yuan, according to a report released by global financial network Swift.

A Currency ‘Tragedy’ and the Geniuses Tasked with Repairing It – Bloomberg

Iceland has appointed a panel to design currency regime.

Could the IMF’s ‘World Currency’ Help Encourage Global Unity? – The Guardian

Amid the rise of populism and nationalism, some are asking if revamping the SDR could re-energise multilateralism.

Regulatory News

A Whack at Dodd-Frank Could Hamstring the SEC – The New York Times

The draft of the Financial Choice Act 2.0, released last week by the House Financial Services Committee and aimed at overturning much of the Dodd-Frank Act, contains provisions that could change how the Securities and Exchange Commission polices the markets.

Meet Craig Phillips, the Man in Charge of Trump’s Review of Wall Street Rules – Wall Street Journal (subscription)

Former BlackRock executive is helming the administration’s plan for financial deregulation.

EU Hardens Brexit Position on Financial Services, Citizens – Bloomberg

European Union governments further toughened their position on Brexit, as they added limits on financial services and explicit demands on citizens’ residency rights to their negotiating plan with the UK.

Where Financial Regulation Goes in a Republican Era – Wall Street Journal (subscription)

A closer look at the two main competing visions—and what they mean for consumers, institutions and the economy.

Fear of Something Worse Seen as Key to CCP Recovery – Risk (subscription)

Forcing banks to pick up defaulted trades is “viable option”, says Fed researcher.

European Union to Invest €500,000 to Develop Blockchain Expertise – Finance Magnates

The European Commission intends to launch ‘an EU Blockchain Observatory’ to learn how to regulate the field.

Company News

British Banking Braces for Hard Times – Wall Street Journal (subscription)

The good news: Brexit may not hurt London’s finance sector as much as people think. The bad news: Other factors will hurt it a lot more.

Barclays Bets Big on Fintech in UK Despite Brexit Fallout – Finance Magnates

The fintech scene is growing in London at a time when many banks are looking to exit the city.

Industry Looks to Formalize FIX Ecosystem – Markets Media

The English prose specifications published by the FIX Trading Community for its engine are being translated into mathematically precise language in order to encourage the industry to formalize the rules and algorithms that run increasingly complex financial markets.

Market Savvy

US Timber Tariffs Announcement Undercuts Canadian Dollar – Financial Times (subscription)

The Canadian dollar weakened as much as 0.3 per cent in Asia trading after the Trump administration announced it would impose tariffs on Canadian exports of softwood lumber to the US.

Nigeria Naira Quoted 18 Percent Weaker at Investors’ FX Window – Reuters

The Nigerian naira was quoted 18.3 percent weaker for portfolio investors compared with the interbank rate, a day after the central bank said it would allow investors to trade the currency at market determined rates.

CEE Bonds Ease, Hungarian Central Bank Seen Holding Fire – Reuters

Central European currencies mostly gained and government bonds tracked Bunds lower as relief over France’s presidential election turned investors towards risky assets.