Top Headlines

Sterling Slips After UK Service Sector Growth Slows – Reuters

Sterling slipped further against the dollar and the euro after a major survey showed British services growing at its slowest rate since just after the vote to exit the European Union in June 2016.

Top Pound Forecasters Are Bullish as Brexit Worries ‘Overplayed’ – Bloomberg

The most accurate pound forecasters are keeping calm and see the currency climbing more than eight percent this year.

Dollar Bounces as Trade War Fears Fade – Reuters

The dollar rose to a two-week high against a basket of major currencies after a late recovery by US equities helped the currency recover as investors reassessed the danger of a trade war between China and the United States.

Wall Street’s Trading Desks Are Making a Comeback – Wall Street Journal (subscription)

Following wild price swings for markets in the first quarter, Wall Street’s trading desks are poised to report one of their best three-month periods in years.

Forex Investors Stay Above the Equity Market Fray – Financial Times (subscription)

Most leading currencies are rangebound and awaiting monetary policy cues. 

What Is the Big Switch Underpinning the Euro-Clearing Battle? – Financial News (subscription)

As politicians wrangle over Brexit, there are already signs the market is expecting significant swap liquidity to shift to the continent.

Funding Changes Break Cross-Currency, Libor/OIS Link – Risk (subscription)

A dislocation between the US dollar Libor/overnight index swap (OIS) basis and the cross-currency swap basis is being blamed on a fundamental shift in how domestic and foreign banks source US dollar funding.

Traders Still Haunted by Liquidity Mirages in FX – FX Week (subscription)

Market participants’ ability to execute on stable and firm prices is essential for achieving best execution.

Bitcoin Brouhaha: Cryptocurrency Exchange OKEx Denies Price Tampering – Wall Street Journal (subscription)

A large cryptocurrency exchange denied accusations from some customers it manipulated prices of bitcoin futures after sudden price swings on its trading platform last week.

Five Big Questions Following the CME/NEX Deal Announcement – Profit & Loss (subscription)

At $5.4bn, does the purchase of NEX represent good value for CME Group?

Obstacles to Modernisation – Profit & Loss (subscription)

How can we have real time settlement in the FX market when we can’t agree what the high or low is for some hours when we have an event?

Why Singapore’s Central Bank Has No Key Rate – Bloomberg

The currency affects inflation more sharply than in other countries, so targeting the exchange rate rather than interest rates is more effective for achieving price stability – the central bank’s main goal.

The Danger of Ignoring Trader Behaviour in Risk Management – Risk

Quants show popular risk measures fail to limit risk-seeking behaviour among traders.

Regulatory News

US Trade Offensive Puts Spotlight on Foreign-Exchange Policies – Bloomberg

President Donald Trump’s intensifying trade crusade is putting a fresh spotlight on an upcoming US assessment of foreign-exchange policies.

Powell Shows Markets He Won’t Be Rattled by Volatility – Bloomberg

The smart money may head for the hills anyway.

UK Money Managers Under Pressure Over Fees – Bloomberg

The UK Financial Conduct Authority wants asset managers to disclose more information about how they measure their performance, ramping up pressure on active funds to justify their charges.

Japan Unveils Guidelines for Allowing Initial Coin Offerings – Bloomberg

Japan is moving toward legalizing initial coin offerings, even as countries such as China and the US restrict the fundraising technique because of their risks for investors.

Company News

Cboe Forms Markets Division: Names Heads – Profit & Loss

Cboe has formed a Markets division to unify product, sales, business development and account coverage personnel across the company’s US equities and options, ETP listings, global derivatives and FX businesses.

CLS and NEX Expand FX Compression Service – Profit & Loss

CLS and NEX Group have announced that they are extending the triReduce CLS FX service to third parties. These institutions will participate in the same compression cycles as CLS settlement members.

Ripple Has Tried to Buy Its Way Onto Major Exchanges for Cryptocurrency – Bloomberg

Startup asked Gemini, Coinbase if money would persuade them.

Market Savvy

Long Positions in Most Asian Currencies Rise on Shaky Dollar Outlook – Reuters

Investors strengthened their long positions in most Asian currencies over the past two weeks, while bearish bets on the Indian rupee were reversed as trade tensions clouded the US dollar outlook. 

Turkish Lira Strikes Historic Low After 1% Drop – Financial Times (subscription)

Turkey’s currency took a blow, dropping sharply against the US dollar and hitting its lowest level on record.

Venezuela’s Currency Is Doing Even Worse Than Previously Thought – Bloomberg

Venezuela’s currency is worth even less than previously believed, with new trackers of the black-market rate showing deep discounts compared with the long-standing benchmark gauge.