Top Headlines

Commodity Currencies Hit as Oil Slides; Yen Edges Higher – Reuters

The Canadian dollar set a 14-month low and the Australian dollar hit a four-month trough as oil prices slid, while the safe haven yen edged higher as risk sentiment wavered.

Dollar Slips as Traders Weigh Economic Data, Commodity Selloff – Wall Street Journal (subscription)

The dollar fell as investors digested mixed US economic data and a slide in commodity prices.

Pound and Euro Flat Ahead of Elections – Financial Times (subscription)

Impending election results in the UK and France were putting the British pound and euro in focus.

Renminbi is Merely Pausing, Not Retreating, in Its Global Growth – Financial Times (subscription)

China’s move to tighten controls has reduced international use of the currency.

Hammond Reassures City as Euro-Clearing Battle with Brussels Heats Up – The Telegraph

Philip Hammond tried to reassure the City over its future as a financial hub following threats from Brussels to control euro-clearing, with the Chancellor warning that proposed EU changes could weaken financial stability.

Russia’s $796 Million Error Sinks FX Purchases Into Irrelevance – Bloomberg

Foreign-exchange purchases by Russia’s Finance Ministry will be so negligible in the coming weeks that they will do little to cool off the ruble.

Mexico Central Bank Renews Auction of $200 Million in Forex Hedges – Reuters

Mexico’s central bank said it will auction on May 5 $200 million worth of peso hedging instruments, renewing a tool issued to help stabilize the currency.

Japan Proposes Expanding Bilateral FX Swap Scheme with ASEAN – Reuters

Japan’s Ministry of Finance proposed launching bilateral foreign exchange swap arrangements of up to 40 billion dollars with Southeast Asian nations to enable Tokyo to provide yen funds to these countries during times of financial crisis.

Euribor Administrators Opt Against Methodology Overhaul – Financial Times (subscription)

The administrators of Euribor, the Brussels equivalent of the Libor benchmark rate, have decided against an overhaul in which they would calculate the benchmark based on actual transaction data rather than the old system of banks’ best estimates.

FX Volatility Highlighting Under-Served Market Segment – Profit & Loss (subscription)

A more volatile trading environment is exposing a segment of businesses that are currently being under-served by FX service providers, claims Moises Michan, a managing partner at Tanridge Capital.

The Rise of the Algorithm Need Not be Bad News for Humans – Financial Times (subscription)

The science and technology committee of the House of Commons published the responses to its inquiry on “algorithms in decision-making” on April 26.

Nigerian Central Bank Governor Says Oil Revenues Hikes Helps to Defend Naira – Reuters

A recent rise in oil revenues has helped the central bank to defend the naira and stabilise the parallel market foreign exchange rate, central bank governor Godwin Emefiele said.

Regulatory News

House Panel Approves Plan to Undo Parts of Dodd-Frank Financial Law – Wall Street Journal (subscription)

The House Financial Services Committee launched a Republican-supported rollback of Obama-era financial regulations, voting 34-26 along party lines for a plan to undo significant parts of the 2010 Dodd-Frank law.

Trump’s Threats to Break Up Banks Aren’t Scaring Wall Street Yet – Bloomberg

Despite President Donald Trump’s repeated assertions that he might support breaking up big banks, Wall Street isn’t worried. Yet. 

CFTC Seeks Comment for Simplifying Rules – Pensions & Investments (subscription)

The Commodity Futures Trading Commission voted to seek public comment on simplifying and modernizing the commission’s overall rules.

Finra Board to Consider Crackdown on High-Risk Brokers, Unpaid Arbitration Awards – Investment News (subscription)

The board of Finra next week will address two nettlesome issues for the broker-dealer self-regulator: brokers with disciplinary histories who keep resurfacing in the industry and brokerages that fail to pay arbitration awards.

Late LEI Registrations Might Not be Ready for January 2018, Gleif Says – FX Week (subscription)

If firms leave their LEI registration application until the last quarter of 2017, they might not receive their identifier in time.

Company News

Call Me: Traders Still Smiling and Dialing in the Electronic Age – Bloomberg

That’s the finding of a Greenwich Associates survey, in which 88 percent of trading professionals said voice communication is still very, or extremely, critical to their work.

FX: How Low Can You Go? New Solution Cuts Tick-to-Trade Latency to 120ns – Euromoney

Two technology firms say they have pushed the boundaries of trading latency a step closer to the limit with a solution that cuts tick-to-trade latency from 250 nanoseconds to just 120.

Ex-Blacktree Founders Launch TCA Firm Tradefeedr – FX Week (subscription)

Balraj Bassi and Alexei Jiltsov sold the hedge fund’s technology in 2015, and have now set up an FX analytics company.

Goldman Sachs Boss: City ‘Will Stall’ Over Brexit Risk – BBC

The chief executive of the world’s second largest investment bank has warned that London “will stall” because of the risks from the Brexit process.

Market Savvy

Australian Dollar, Norwegian Krone Sink as Oil Tanks – Financial Times (subscription)

The Australian dollar and Norwegian krone are vying for the ignominious title of worst-performing major currency today as commodity prices tumble.

Commodity Rout Sends Emerging FX, Stocks to Weekly Loss – Reuters

A sharp sell-off in commodity prices and a rise in US treasury yields put main emerging currencies on track for a weekly loss, while emerging market stocks hit a 10-day low and looked set to end the week in the red.

Leu Bucks FX Easing, Romanian Central Bank Seen Holding Fire – Reuters

The leu, bucking an easing of other Central European currencies, drifted sideways ahead of a meeting of the Romanian central bank, which is expected to keep interest rates on hold at record lows.