Top Headlines

Sterling Hits Firmest Level vs Trade-Weighted Currencies Since Brexit Vote – Reuters

Sterling has hit its firmest level against a trade-weighted basket of currencies since shortly after Britain voted to leave the European Union in June, 2016, data showed as the pound enjoys broad-based gains.

Dollar Struggles Near Two-Week Lows as Tensions Persist – Reuters

The dollar held near a two-week low against a basket of currencies as investors remained cautious over possible Western military action against Syria, while the euro was also steady before minutes of the ECB’s March meeting.

Rouble Slides to 2016 Lows on Sanctions Sell-Off, Syria Tensions – Reuters

The rouble fell to its lowest levels since 2016 as tensions with the United States over new punitive sanctions and the conflict in Syria eclipsed any benefit from higher oil prices.

Hong Kong Dollar Touches Key Level for First Time Since 2005 – Bloomberg

Hong Kong’s dollar fell to the weak end of its permitted band for the first time since the range was imposed in 2005, a warning sign for a city where easy money has stoked a property boom and underpinned the stock market’s record rally.

Don’t Rule Out a Yuan Devaluation – Bloomberg

China needs to keep some ammunition in case of any escalation in the Trump trade spat.

FX Hedge Funds Trampled by Bad Volatility in Dreadful Start to 2018 – Bloomberg

Currency traders fail to translate price swings into profits.

State Street ‘Actively Considering’ Entering FXPB Market – HFM Week (subscription)

State Street is the latest custodian bank to eye a move into FX prime brokerage.

Ex-Barclays Trader Goes to France as Euribor Trial Starts – Bloomberg

Philippe Moryoussef, a former trader at Barclays, went to France ahead of a London trial on charges that he rigged a key benchmark rate, saying that the proceedings wouldn’t be fair.

Emergency Training for Market Events – Profit & Loss (subscription)

The FX industry has the computers to manage matters when markets are “normal”, but as has been proven in fairly recent events, they can’t handle events as they either switch off or exacerbate the move.

LCH and CME to Start Clearing SOFR Swaps in Third Quarter – Risk (subscription)

The two largest clearers of US dollar interest rate swaps will start clearing derivatives referencing the new secured overnight financing rate (SOFR) in the third quarter – ahead of the first quarter of 2019 targeted by the Alternative Reference Rates Committee.

Regulatory News

CFTC Chief: Regulators Wrong to Focus on ‘Mere Incidents of Bad Behavior’ – Forbes

Commodity Futures Trading Commission Chair Christopher Giancarlo said financial regulation must focus on solving demonstrable not “mere incidents of bad behavior.”

Wall Street Faces Higher Capital Demands Under Fed Proposal – Bloomberg

Wall Street banks could face higher capital hurdles under a Federal Reserve proposal that would mark the most significant rewrite of requirements put in place after the 2008 financial crisis.

Systematic Internaliser Register Launched – Profit & Loss

The SmartStream Reference Data Utility (RDU) in collaboration with a group of Approved Publication Arrangements (APAs), including Bloomberg, Deutsche Boerse, NEX Regulatory Reporting, TradEcho, Tradeweb and Trax have launched a detailed Systematic Internaliser (SI) Registry.

Company News

Global Collateral, NEX Team Up for Margin Solution – Profit & Loss

DTCC-Euroclear Global Collateral (Global Collateral), a joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), and NEX, have announced a new partnership to streamline and improve OTC derivatives margin call processes.

Millennium Global Takes ACI’s ELAC for Global Code Adherence – Profit & Loss

Millennium is the first major UK-based buy side asset management firm to sign up to ELAC, which was launched last year and has also been adopted by ANZ Bank among others.

BCB Group Launches Institutional Cryptocurrency Prime Brokerage Solution – Banking Tech

In a sign that cryptocurrency will increasingly be absorbed by mainstream institutional investors and subject to best practice in financial services while regulations are being worked out, is the first cryptocurrency brokerage from BCB Group.

Market Savvy

Swedish Krona Weakens After Inflation Data Miss Estimates – Financial Times (subscription)

Sweden’s currency weakened against the euro after a round of inflation data undershot expectations, adding fuel to concerns over the Riksbank’s cautious stance on tightening monetary policy.

As Lira Hits Record Lows, Turkey’s Erdogan Cites Attack on Economy – Reuters

The Turkish lira sank to record lows, battered by investor concern about monetary policy and inflation, a sell-off that President Tayyip Erdogan dismissed as an economic attack by enemies of the state.

Bitcoin Remains Neutral in $6,492-$7,007 Range – Reuters

Bitcoin remains neutral in a range of $6,492-$7,007 and an escape could suggest a direction.