Top Headlines

US Dollar Makes Broad Rise Ahead of Trump Tax Speech – Financial Times (subscription)

The US dollar pushed higher, rising against many of its developed market peers ahead of eagerly awaited remarks from Donald Trump on tax reform.

King Dollar Dethroned from Safe-Haven Perch in Carry-Trade Shift – Bloomberg

The euro and the yen have quietly usurped the dollar as the world’s favorite haven, according to Bank of America strategists.

Euro Slips to One-Month Lows on Resurgent Dollar – Reuters

The euro hit a fresh one-month low as an ongoing dollar short squeeze and reaction to the German election encouraged investors to take profits on one of the best performing currency trades this year.

Merkel’s Coalition Attempts Seen Hurting Euro in Short Term – Bloomberg

The euro may weaken short-term and peripheral bond yield spreads widen as the rise in popularity of a far-right party in Germany’s election threatens to undermine efforts for closer European integration.

Sterling Slips to Two-Week Low as Fed Comments Lift Dollar – Reuters

Sterling slipped below $1.34 for the first time in almost two weeks, against a dollar that was lifted across the board by the chair of the Federal Reserve saying more US interest rate rises were needed.

Hammond Warns of Labour Sparking ‘Crash in the Pound’ – Financial Times (subscription)

Chancellor Philip Hammond has warned that a victory from the opposition Labour party in the next election would prompt “a crash in the value of the pound, causing a shock wave of inflation”.

City Firms Urge Free Trade Agreement for Financial Services After Brexit – The Guardian

London and Frankfurt will lose out to New York and Singapore if UK and EU do not agree deal, says report.

UBS Investment Bank Chief: If Brexit Fragments European Banking, the ‘Only Clear Beneficiary Is the United States’ – Business Insider

The United States of America will be the only beneficiary of any financial services fragmentation after Brexit, the head of investment banking at UBS believes.

 What Makes a Good FXPB Client? – Profit & Loss (subscription)

Post-Basel III, firms taking big positions in non-spot products are going to consume vastly more balance sheet and capital than a firm trading only spot in smaller amounts, which can easily be serviced with a relatively little net open position (NOP).

Pakistan Targets Import Curbs to Ward off Currency Crisis – Financial Times (subscription)

Pakistan plans to tighten curbs on luxury imports to ward off a foreign currency crisis without devaluing the rupee, Shahid Khaqan Abbasi, the prime minister, has said. 

How Taiwan’s Currency Became World’s Dullest – Bloomberg

For a currency that surged the most in almost a decade in the first quarter of the year, the Taiwan dollar sure has turned boring.

Regulatory News

SEC Hackers Accessed Authentic Data Used by Companies in Tests: Sources – Reuters

Hackers breached the US Securities and Exchange Commission’s computer system last year by taking advantage of companies that used authentic financial data when they were testing the agency’s corporate filing system, according to sources familiar with the matter.

Outgoing CFTC Member Wants High-Speed Trading Rules Set – Law360 (subscription)

The US Commodity Futures Trading Commission’s Sharon Bowen urged the agency in a farewell address to finalize rules regulating high-speed trading, calling it unfinished business and arguing that failure to keep pace with European regulators on this matter will jeopardize American financial markets.

Capital Rules May be Too Risk-Sensitive, Basel Fears – Risk (subscription)

Complexity is slowing roll-out of standards, says Basel Committee deputy.

Banking Rules Have Improved. Just Not Enough – Bloomberg

Many economists fear the financial system remains exceedingly vulnerable to shocks.

Why China’s Ban on Bitcoin May Be Temporary – Forbes

China’s ban on Bitcoin and other cryptocurrencies may be temporary, to appease international agencies and hardcore communist members ahead of the upcoming Communist Party convention.

Company News 

NEX Markets Launches NEX Quant Analytics – Profit & Loss

NEX Markets has launched a new suite of analytical tools on its EBS FX trading platform that seeks to match the sophistication levels of those available at banks and trading firms at market level.

Hotspot Commits to Global FX Code – Profit & Loss

Hotspot says it has aligned its activities across its global business with the principles of the FX Global Code, issuing a statement of commitment today.

SGX Achieves FX Record – Profit & Loss

Singapore Exchange (SGX) has announced a new daily volume record for its SGX INR/USD futures contract.

Bitcoin Futures Fail to Get Traction on Biggest Exchange for Now – Bloomberg

‘Bitcoin is very nascent right now,’ CME president says.

Market Savvy

NZ Dollar Touches Three-Week Low as Greenback Firms, Post-Election Nerves Creep In – Financial Times (subscription)

The New Zealand dollar touched a three-week low against the greenback and is down about 1.3 per cent since Saturday’s election failed to deliver a clear winner.

Asian Currencies Fall on Renewed North Korea Tensions – Reuters

Asian currencies languished as tensions flared up amid an escalating war of words between North Korea and the United States, driving investors to safe haven assets.