Top Headlines 

US Dollar Notches Quarterly Loss – Wall Street Journal (subscription)

The dollar slid nearly 3% in the first three months of the year as investors unwound bets that the Trump administration’s economic proposals would boost the US economy.

Dollar Edges Up as Investors Shrug Off Mixed US Data, Fed Comment – Reuters

The dollar edged up in European trading as investors shrugged off a lack of motives to buy it last week and awaited more clarity on the strength of the US economy and pace of future interest rate hikes.

Sterling Tumbles After UK Manufacturing Growth Unexpectedly Shrank in March – City AM

The pound fell against both the euro and the dollar after closely-watch figures showed UK manufacturing growth shrank unexpectedly.

Central Banks Cut Euro Exposure in Favour of Sterling Amid Bloc Jitters – Financial Times (subscription)

Central banks are dumping euros amid concerns over political instability, weak growth and the European Central Bank’s negative interest rate policy — and favour sterling as a long-term, stable alternative. 

Europe, US Market Risks Are Back to Front, Saxo Bank Says – Bloomberg

The market is overestimating political risk in Europe and underestimating the chances of a US recession, according to Saxo Bank. 

Former Citi Traders Fined for Spoofing – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has issued two separate Orders filing and settling charges against two former Citigroup traders for spoofing US Treasury futures markets.

Credit Suisse Taken by Surprise in Five-Nation Tax Probe – Bloomberg

Credit Suisse Group and its home country of Switzerland were surprised by a tax evasion and money laundering investigation that spans five countries from Australia to the UK and potentially involves thousands of account holders.

Platforms Report Strong Data for March – Profit & Loss

Three FX platforms have reported strong FX volume data for March, including two new records.

Rand Tumbles Further as Zuma Backlash Grows – Financial Times (subscription)

The rand is showing little sign of recovering as the dust begins to settle after President Zuma’s midnight cabinet clearout last week, falling further in early trading.

Weak Yen Brightens Japanese Manufacturers’ Outlook – Financial Times (subscription)

Japanese industry is growing steadily more confident as a weak yen and a stronger global economy offer new hope of escaping deflation.

Fund Managers Reveal Their Currency Strategies – Bloomberg

Short the dollar on any bounce. Bet on a recovery of the euro after the French elections. Position for the yuan to strengthen.

Iceland Weighs Plan to Peg Krona to Another Currency – Financial Times (subscription)

Iceland’s finance minister has admitted it is untenable for the country to maintain its own freely floating currency, just days after it lifted capital controls imposed in the wake of its near financial collapse in 2008.

Low Oil Price and Currency Controls Hit Nigeria Hard – Financial Times (subscription)

Analysts are united in saying that the currency controls are holding the economy back.

Egypt Central Bank Sees Pound’s Real Exchange Rate Appreciating – Bloomberg

Egypt’s improved competitiveness after the November 3 floating of the currency is unlikely to be negatively affected by an expected appreciation of the pound’s real effective exchange rate in the short term, the central bank said.

Venezuela Bonds Tank; Mexico Peso Takes a Breather – Reuters

Venezuelan government bonds prices sank as tensions rose following the annulment of the country’s legislature by the country’s high court this week while the Mexican peso pulled back after a recent rally.

CTA Performance: Decline or Dip? – Profit & Loss (subscription)

CTA strategies struggled in 2016 but key trends are still shaping the managed futures industry.

Improving Your Chat – The Trade

With compliance teams at financial institutions looking at new initiatives to tighten up chat culture, Bloomberg’s hegemony could come under threat by new entrants.

Trading Rises with Clearing – Markets Media

The increase in clearing following the introduction of rules requiring the exchange of margin for uncleared derivatives six months ago has been accompanied by a rise in trading activity.

Regulatory News

Libor Manipulator Tom Hayes’ Family Ties to BoE – Financial Times (subscription)

Chris Salmon, the BoE’s head of markets, is, it transpires, the uncle of jailed Libor manipulator Tom Hayes.

CFTC Names New Enforcement Director – Profit & Loss

US Commodity Futures Trading Commission (CFTC) acting chairman Christopher Giancarlo has announced the appointment of James McDonald to be the director of the agency’s Enforcement Division.

MAS Issues Execution Advice Guidelines – Profit & Loss

The Monetary Authority of Singapore (MAS) has issued guidelines for the conduct of businesses offering execution advice, including in foreign exchange markets.

UK Seeks to Kill Foreign Bank Rule as Brexit Snare Looms – Bloomberg

The UK is trying to kill a planned European Union rule for foreign banks that will become crucial for its own lenders after Brexit.

Europe Recognises Six More Non-EU CCPs – FOW (subscription)

The European Securities and Markets Authority has recognised six more non-European central counterparties under its main clearing regulation.

Buy-Sider Brands ASIC Agreements Laughable – FX Week (subscription)

Australian regulator’s enforceable undertaking agreements hint at highly divergent rules enforcement globally.

Company News

May’s Team Said to Plan for Banks Not Getting Brexit Trade Deal – Bloomberg

UK-based financial services could be left out of the main Brexit negotiations as British government officials fear it will be too difficult to reach a deal in the two-year time frame for talks.

Euronext and Intercontinental Exchange Sign Clearing Services Pact – Financial Times (subscription)

Euronext, the pan-European exchanges operator, has moved swiftly from missing out on the €510m purchase of LCH’s French unit by agreeing to move its derivatives and commodities clearing operations to rival Intercontinental Exchange.

Vleeschauwer Returns to Sydney with Citi – Profit & Loss

Sources familiar with the matter say that Charl Vleeschauwer is joining Citi in Sydney as part of the bank’s shift of its Asian spot desk to that centre.

SIX’s Multi-Currency Platform Gains MTF Status – The Trade

SIX Securities Service’s multi-currency trading platform has been recognised by Swiss authorities as a multilateral trading facility (MTF).

Blockchain Bonds Prepare for Launch – International Financing Review

The first blockchain-powered bond issues are expected to emerge in a matter of weeks, as technology start-up BlockEx puts the finishing touches to a digital asset issuance platform that it believes could ultimately squeeze out bank syndicate functions.

Market Savvy

Weak Retail Sales Data Keeps Australian Dollar Under Pressure – Financial Times (subscription)

The Australian dollar fell upon the release of the data and has remained the worst-performing major currency.

C$ Strengthens as Growth Boosts Rate Hike Prospects – Reuters

The Canadian dollar strengthened against the greenback, padding its gains for the quarter, as data showing robust domestic growth in January raised prospects of an earlier-than-expected Bank of Canada interest rate hike.

Czech Bond Markets Calmer as Cap on Crown is Eyed – Reuters

The Czech Central Bank’s commitment to maintain the 3½ year-old weak crown regime ended on Friday.