Top Headlines

Two More Australian Banks Settle FX Claims – Profit & Loss

ANZ and Westpac have both accepted enforceable undertakings from the Australian Securities and Investment Commission (ASIC) relating to control failures in their global FX businesses.

Dollar Hits Five-Week Lows, Investors Keeping Close Eye on G20 Meeting – Reuters

The dollar hit five-week lows against its peers, in the wake of the Federal Reserve’s cautious message this week on the outlook for interest rate hikes and on concerns over a protectionist slant to a G20 meeting this weekend.

Despite US Rate Increases, the Dollar’s Biggest Gains Look Done for Now – Wall Street Journal (subscription)

The Federal Reserve may be well set on its interest-rate raising course this year, but gains in the dollar could prove harder to come by.

Sterling’s Calm Faces Test as Brexit Talks Near – Financial Times (subscription)

Sterling brushed off the latest bout of Brexit nerves and fresh worries about a break-up of the UK, trading close to $1.24 in London.

An Independent Scotland Could Abandon Sterling Union: Salmond Tells FT – Reuters

Scotland could abandon a currency union with the rest of the United Kingdom if it gained independence, former Scottish First Minister Alex Salmond told the Financial Times.

Currency Traders Race to Reform ‘Last Look’ After Bank Scandals – Bloomberg

Currency traders may not be fast enough, at least when it comes to cleaning up their image.

Schaeuble Calls for ‘Strong’ City Post Brexit – BBC

Germany’s finance minister Wolfgang Schaeuble has said it is in the EU’s interest to have a strong financial centre in London.

CLS Volumes Slightly Up in February – FX Week (subscription)

Swaps and forwards continue to show steady growth, but spot is down 23% on the year.

Currency Investors Tread Gingerly on SNB ‘Soft Floor’ – Reuters

With the Swiss National Bank’s foreign currency reserves at record highs, investors are growing anxious about its ability to keep the Swiss franc from appreciating further against the euro, amid heightened political risk in Europe.

CCP Chiefs Warn on Clearing Provision Capacity – Risk (subscription)

ICE and LCH question whether direct buy-side clearing models can alleviate capital crunch.

Regulatory News 

G20 Finance Heads to Repeat FX Assurances, No Deal Yet on Rejecting Protectionism – Reuters

The world’s financial leaders will renounce competitive devaluations and warn against exchange rate volatility, a draft statement seen by Reuters showed, but they have not yet found a common stance on trade and protectionism.

Treasury’s Mnuchin Says Trump Does Not Want Trade Wars – Reuters

US Treasury Secretary Steven Mnuchin said that the Trump administration has no desire to get into trade wars, but certain trade relationships need to be re-examined to make them fairer for US workers.

The Trump Job Banks Care About Most – Wall Street Journal (subscription)

A looming appointment by President Donald Trump will signal just how much regulatory relief Wall Street can look forward to under his administration by forcing him to choose between competing factions in his administration.

Lloyd Blankfein Defends Goldman Sachs from ‘Government Sachs’ Label – Wall Street Journal (subscription)

Goldman chief executive defended the pipeline of alumni moving into top roles in Washington, a funnel that has been a spark for populist criticism at both the bank and the Trump administration.

Finra’s Lobbying Expenses Down, But Regulator Still Spends Heavily to Make Sure Its Voice is Heard on Capitol Hill – Investment News

Finra’s lobbying bill fell to its lowest point in four years in 2016, but the broker-dealer regulator still spends a hefty amount to have its voice heard on Capitol Hill.

MAS Warns on Binary Options – Profit & Loss

The Monetary Authority of Singapore (MAS) has issued a warning to investors on the trading of binary options with unregulated platforms.

Company News 

Hedge Funds, CTAs Up in February – Profit & Loss

Managed futures traders gained 0.71% in February according to the Barclay CTA Index, compiled by BarclayHedge. 

Pimco Adviser’s ‘Trade of a Decade’ Beckons in Emerging Markets – Bloomberg

The investor who called emerging markets the “trade of a decade” before their rally last year sees further gains to come. 

Illinois Watchdog First US Regulator to Join Blockchain Consortium R3 – Reuters

The Illinois Department of Financial and Professional Regulation has joined the blockchain consortium led by startup R3, as financial watchdogs around the world seek to better understand the opportunities and risks of the emerging technology. 

Market Savvy

Mexico Peso Retreats from Four-Month High, LatAm FX Up – Reuters

Mexico’s peso pulled back from a more than four-month high as other Latin American currencies extended their advance for a second session on bets the United States will hike interest rates this year less than previously expected.

C$ Retreats from Two-Week High as Post-Fed Rally Fades – Reuters

The Canadian dollar retreated from an earlier fresh two-week high against its US counterpart as a rally triggered by the Federal Reserve’s outlook for interest rate hikes faded.

Australian Dollar Near Highs Against US Dollar as Fed Keeps Cautious Tone – AUD News

The Australian dollar to US dollar exchange rate jumped to a three-week-high of 0.77 following the Federal Reserve’s March interest rate hike.