Top Headlines

Sterling Hits Seven-Week Low After Weak UK Services PMI Data – Reuters

Sterling fell to a seven-week low as a survey showed growth in Britain’s dominant services sector cooling and British Prime Minister Theresa May played down talk of a fresh Scottish independence vote as the UK prepares to leave the EU.

Sterling Set for Slow Burn Through Initial EU Divorce Proceedings – Reuters

The battered British pound is set for a slow burn lower along with diminished growth prospects once the UK government triggers official proceedings for divorce from the European Union as it is expected to do later this month, a Reuters poll found.

Offshore Renminbi Slips Below Onshore Rate for First Time in Two Months – Financial Times (subscription)

The offshore renminbi has just traded at a weaker level against the dollar than its onshore cousin for only the second time in two months.

China and Currency Manipulation – The Economist

The government has been pushing the price of the yuan up, not down.

Dollar Slips But Poised for Winning Week on March Fed Rate Hike Bets – Reuters

The dollar slipped but remained on track for a solid weekly gain on growing expectations the US Federal Reserve will raise interest rates at its mid-March meeting, which led to a rise in US Treasury yields.

LatAm Stocks, Currencies Drop on Bets of US Rate Hike – Reuters

Latin American stocks and currencies fell on growing expectations of a March US interest rate increase that could reduce the allure of high-yielding assets.

Denmark Steps Up Defence of Krone Peg with DKr4.7bn Intervention – Financial Times (subscription)

Denmark’s central bank sold DKr4.7bn (€600m) to weaken the krone in February, its latest statistics showed today, confirming suspicions that it’s working hard behind the scenes to keep in check its currency’s peg to the euro.

Korean Currency Top Performer Against Dollar This Year – Korea Herald

South Korea’s won has risen more than six percent against the US dollar this year, the best performer among major currencies, data showed.

Asia’s Ugly Duckling of the Year Is the Philippine Peso – Bloomberg

While other Asian currencies have strengthened against the dollar this year, the peso has hit a more than 10-year low and remains locked out of the party.

Credit Suisse Veteran Says `Very Major’ Currency Moves Over – Bloomberg

Parker said the biggest moves in currencies are mostly over as elections in Europe and a likely retreat in global stock markets will make investors cautious about putting money into riskier investments.

Bitcoin Price Tops Gold for the First Time Ever – Financial Times (subscription)

The price of a bitcoin has climbed above that of a troy ounce of gold for the first time on record after the cryptocurrency enjoyed a dramatic upswing in interest since last year.

Does High Speed Trading Add More Risk to the FX Currency Market? – Banking Technology

Technology has changed the way we do many things, but financial technology has revolutionised the currency markets in recent years.

Regulatory News

US Financial Regulators Discuss Firm’s ‘Too Big to Fail’ Label – Reuters

The Financial Stability Oversight Council, made up of all major US financial regulators, met late on Thursday afternoon and reviewed its designation of a nonbank firm as “too big to fail,” according to a statement from the Treasury Department.

Dismantling Dodd-Frank May Have to Wait – Bloomberg

Republicans’ big idea to keep banks safe is too loose for Democrats and too strict for banks.

FINRA Fines Hit Record Level in 2016 – Bank Investment Consultant

FINRA whacked firms and their representatives with a record $176 million in fines in 2016, according to a report by law firm Eversheds Sutherland.

Bank of Canada Commences New Reference Rate Publication – Profit & Loss

The Bank of Canada has followed through on a plan to change how it publishes reference FX rates to reinforce the distinction between reference rates used for benchmark fixings and those for information purposes only.

Company News 

CME to Change FX Option Expiry Process – Profit & Loss

CME Group says it will change the exercise and assignment rules for all options on FX futures contracts.

JPMorgan eFX Survey: Electronic Trading at 76%, Algos on the Rise – Reuters

The result reinforces the transition from voice dealing to eFX solutions.

In Fight to Defend Currency, Nigeria Turns to Forex Police – Wall Street Journal (subscription)

In a two-year battle to defend the value of its currency, Africa’s largest oil producer is resorting to a new weapon: armed foreign-exchange police.

Market Savvy 

Despite Positive GDP Figures, ‘Aussie’ Falls on Back of Shocking Trade Balance Data – AUD News

The AUD is currently trading at 0.7567 against the USD.

CEE – Currencies, Stocks Ease Ahead of Yellen Speech – Reuters

Central European stocks and currencies eased for a second session in a row on the back of growing market expectations of a US interest rate hike in March.

C$ Shrugs Off Solid GDP Data; Oil and Fed Weigh – Reuters

The Canadian dollar weakened against its US counterpart, shrugging off solid domestic economic growth data as lower oil prices and increased bets on a US interest rate hike weighed on the loonie.