Top Headlines

Yen Touches 15-Month High as Dollar Weakens Ahead of Inflation Data – Financial Times (subscription)

The yen hit its strongest intraday level against the dollar in 15 months as the dollar weakened ahead of a release of US inflation data later in the day.

Japan Government Calls for Stable FX, Seeks to Jawbone Strong Yen – Reuters

Japan’s top government spokesman warned that stable currency market moves were “extremely important”, signalling concern over recent yen gains that could cool a strengthening economic recovery.

Dollar Drops as Investors Remain Edgy Before US Inflation Data – Reuters

The dollar hit a 15-month low against the yen and fell versus the euro for the fourth consecutive day, with investors nervous ahead of key US inflation numbers due later amid a fragile recovery in equity markets.

Sterling Slips to Five-Week Low Versus Euro Ahead of Johnson Speech – Reuters

Sterling slipped to a five-week low against the euro, as investors turned cautious ahead of a speech on Brexit by Boris Johnson, Britain’s foreign minister and prominent supporter of the campaign to leave the European Union.

EUR to Spring a Surprise on Markets? – Profit & Loss (subscription)

Political factors mean that this currency could surprise markets in 2018.

Wall Street’s Sleepy Trading Floors Get the Jolt They’ve Needed – Bloomberg

Will it last? Who knows? But now it’s oxygen for the banks.

Euro Swaptions Market Prepares for Pricing Revamp – Risk (subscription)

Interdealer market to adopt collateralised cash price from July, but some fear impact on legacy books.

Industry Mulls SFTR Reporting – Markets Media

The MiFID II regulations only went into force last month in the European Union but financial firms are already having to think about additional reporting requirements from more regulation.

Cryptocurrency Price Manipulation Is ‘Unavoidable,’ Head of Crypto Firm Says – CNBC

Price manipulation in the cryptocurrency space is “unavoidable” but will disappear once the market has matured, the head of cryptocurrency firm NEM said.

Here’s a Tax Cut for London Bankers: Go to Europe – Wall Street Journal (subscription)

Expats who move to France, Spain, Ireland, Germany and the Netherlands would pay less tax and social security, an analysis shows.

Regulators Set to Give FinTech Firms a Long Leash – Profit & Loss (subscription)

It seems that regulators are unlikely to place any significant burdens on new fintech firms emerging in the wholesale financial markets in the near future, given their lack of familiarity with the technologies involved.

Regulatory News

‘Ghost Liquidity’ in Currency Markets Is a Concern for the CFTC – Bloomberg

Declining liquidity has been blamed for flash crashes in foreign-exchange markets, including the British pound’s plunge in October 2016.

White House Considering Cleveland Fed President Mester for Fed’s No. 2 Job – Wall Street Journal (subscription)

Richard Clarida, John Williams and Mohamed El-Erian also have been interviewed for the Fed vice chairman post.

FCA Has ‘Ambitious’ Plan to Fight Insider Dealing – Financial News

The Financial Conduct Authority’s enforcement boss Mark Steward pushes back against outsized estimates of market abuse.

South Korea Vows Firm Action Against Illegal, Unfair Cryptocurrency Trading – Reuters

South Korea said it will take firm action against illegal and unfair acts in cryptocurrency trading after a 280,000 signature petition was sent to the presidential Blue House.

Company News

Thomson Reuters Cites MTF Launch with Record FX Volume Report – Profit & Loss

Thomson Reuters (TR) reports that it hit record in FX trading volumes in January following the successful onboarding of its buy side clients and liquidity providers onto its enhanced Multilateral Trading Facility (MTF), post-MiFID II implementation.

Goldman Willing to Deploy More Capital to Trading Arm – Financial Times (subscription)

Goldman Sachs has held out the prospect of a revival in its beaten-up FICC business, saying the bank is willing to deploy more capital to respond to a “more attractive opportunity set.”

Portware Signs FX Global Code – Profit & Loss

Portware, a FactSet Trading Solution, has signed up to FX Global Code of Conduct.

LMAX Global Liquidity Now Available Through Kx Platform – Profit & Loss

LMAX Global, the Financial Conduct Authority (FCA) regulated broker for FX and part of the LMAX Exchange Group, has announced that its global liquidity has been added to the Kx trading platform, Kx for Flow.

Former ACI President Appointed to UK’s FSCS – Profit & Loss

The UK’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have announced the appointment of Marshall Bailey as chair of the Financial Services Compensation Scheme (FSCS) with effect from 1 April 2018.

Market Savvy

Chinese Yuan to Weaken if Fed Sticks to Policy Tightening Path – Reuters

The Chinese yuan will erase most of its substantial gains so far in 2018 against the dollar over the coming year, a Reuters poll showed, provided the US Federal Reserve delivers at least three interest rate hikes this year, as most economists expect.

Rand Extends Losses After ANC Orders Zuma Resignation – Financial Times (subscription)

Investors were cautious after South Africa’s ruling African National Congress confirmed it had asked Jacob Zuma to resign as president, with the rand and government bonds extending their early losses.