Top Headlines

BIS Survey: FX Turnover Drops to $5.1 Trillion – Profit & Loss

Trading in the FX markets averaged $5.1 trillion per day in April 2016, according to the Bank for International Settlements’ Triennial Central Bank Survey of Foreign Exchange Turnover, a decrease of 5.5% compared to 2013.

China Can’t Break Free From the Almighty Dollar – Wall Street Journal (subscription)

What’s Behind the FX Market’s New Benchmark? – Profit & Loss

While there is little surprise at the new benchmark for FX activity set by the Bank for International Settlements, there have been a few eyebrows raised at the increase in activity in Asia, especially in FX swaps, which the BIS survey highlights as a driver.

Jobs Report Key for ‘Data Dependent’ Fed – Financial Times (subscription)

If payrolls number comes in stronger, hawkish bets will increase.

Fed’s Mester Calls Case for Gradual Rate Increases ‘Compelling’ – Bloomberg

Federal Reserve Bank of Cleveland President Loretta Mester said there’s a “compelling” case for gradually raising interest rates, with the US economy approaching the central bank’s targets on employment and inflation.

China Warms Up for G20 Summit With Promise of Stable Yuan – South China Morning Post

Central banker touts currency in Hangzhou, saying it has endured shocks like Brexit well.

Regulatory News

CFTC Issues Last Minute Reprieve on Margin Rules – Profit & Loss

The US Commodity Futures Trading Commission has issued a no-action letter that will grant swap dealers and extra month to comply with its new uncleared swap margin rules, which were due to go into effect Thursday.

Bank Groups Weigh Legal Challenge to Fed Stress Tests – Wall Street Journal (subscription)

A big point of contention among banks is the tests’ opacity.

Central Banks Should Lead on Digital Currency, PBOC’s Fan Says –Bloomberg

People’s Bank of China Vice Governor Fan Yifei said the monetary authority is pushing to supervise private digital currencies and develop its own digital money.

Nigeria Lifts Ban on Foreign Exchange Market for Eight Banks – Bloomberg

Eight Nigerian lenders including Diamond Bank, FCMB Group and First Bank of Nigeria received permission to resume dealing in foreign exchange, ending a week-long suspension over their failure to transfer funds to the government.

Company News 

Spot Volumes Offer Mixed News for Platforms – Profit & Loss

The 19% drop in spot FX volumes has been expected given generally lower levels of activity in the past 18 months, but notwithstanding that the comparison over the three year span of BIS surveys represents different fortunes for the various multi-dealer platforms.

UK Business Rebound Is Fragile as Firms Await Brexit Detail – Bloomberg

It’s almost back to business as usual – for now. Sentiment among UK executives has regained more than half the losses inflicted by the shock vote to leave the European Union, according to a survey published Friday.

China Merchants Bank Joins R3 – Profit & Loss

R3 has established a footprint in China with the announcement that China Merchants Bank has joined its partnership that seeks to design and apply distributed and shared ledger-inspired technologies to global financial markets.

ADS Securities Launches Tailored FX Prime Brokerage Offering Across Asia – Finance Magnates

ADS Securities has developed a customized version of its FX prime brokerage solution, which is aiming to cater to the needs of institutional clients in Asia.

Market Savvy

US Manufacturing Hits Rough Spot in Possible Warning on Growth – Bloomberg

Manufacturing unexpectedly hit a rough patch in the US last month. If it remains stuck, it would again be up to American consumers to drive economic growth.

ECB’s Nowotny: Don’t Blame Central Bankers for Low Rates – Wall Street Journal (subscription)

Environment makes it difficult for central banks to ‘autonomously’ set interest rates.

Europe Firm as Focus Turns to US Jobs Report – Financial Times (subscription)

Markets subdued with dollar and gold flat ahead of figures viewed key to Fed rates decision.