Top Headlines

Currencies Steady Despite Washington’s Latest Trade Move – Financial Times (subscription)

The dollar index, measuring the greenback against a basket of peers, was mostly unmoved after the US said it would begin levying tariffs on imports of steel and aluminium from the EU, Canada and Mexico.

Sterling Stuck Near Six-Month Low as Strong UK Data Fails to Dispel Wider Gloom – Reuters

Sterling languished near a six-month low despite data showing UK manufacturing growth picked up speed in May for the first time in six months, as worries about Italy’s political crisis and new US trade tariffs dominated the market psyche.

Euro Set to Snap Six-Week Losing Streak as Italy Concerns Wane – Reuters

The euro consolidated gains and is set to break a six-week losing streak following a drop in Italian bond yields after a revived coalition deal between Italy’s two anti-establishment parties reduced concerns of immediate elections.

The ECB Is Turning 20, But It Can’t Shake Teenage Angst – Bloomberg

Euro area’s recurrent financial stress reflects systemic flaws.

UK Derivatives Market Continues to Shrink – Risk (subscription)

The gross mark-to-market value of all derivatives contracts held by UK banks are at their lowest since December 2007, Bank of England data shows, continuing a slide that began in the middle of 2016.

FX Survey 2018: Banks Go Back to Nuts and Bolts – Euromoney

With a spike in volatility and the opportunity to consign conduct issues to the past, this might have been a turning point for global FX, but faced with a range of challenges, many market makers are retreating to core competencies.

Ex-Barclays Trader `Destroyed’ Co-Worker for Not Changing Rates – Bloomberg

A Barclays trader referred to a female colleague with a derogatory term after she refused to help him in an interest-rate rigging scheme that prosecutors say involved both of them.

Regulatory News

Volcker 2.0 Comes at a Good Time for Banks – Wall Street Journal (subscription)

The new Volcker rule comes at an opportune time for banks, which are poised to ride a new wave of global market volatility.

APAs Under Pressure as Esma Cracks Down on Data Tangle – Waters Technology (subscription)

Reporting platforms told by regulator to substantially improve quality of publicly reported data.

Crypto News

Bittrex Gets Bank Agreement to Help You Buy Bitcoin with Dollars – Bloomberg

US crypto exchange to offer fiat trading to corporate users.

Goldman-Backed Crypto Exchange Rattles Users with Terms Change – Bloomberg

Poloniex suspended trading and withdrawals until clients upload new documentation required to verify accounts, spurring concern among some users that they won’t be able to recover their funds.

Bitcoin Trading to Move from Speculation to Algos: Coinfloor – FOW (subscription)

An increase in commercial usage will help price discovery, according to the co-founder of Coinfloor.

Crypto Wallet That Attracted $35 Billion Wins IDG Backing – Bloomberg

ImToken users account for a fifth of Ethereum transactions.

In the World of Cryptocurrency, Even Good Projects Can Go Bad – The New York Times

The Envion experience is the latest reminder of how the sudden rise of virtual currencies has allowed entrepreneurs to have direct access to investors without regulatory oversight – often with financially disastrous consequences for investors.

Company News

The Need for a Better FX Benchmark – Profit & Loss (video)

Philippe Bonnefoy, founder of Eleuthera Capital, explains why the FX industry suffers due to a lack of an effective industry benchmark.

Some Initial Thoughts on the 360T/GTX Deal… – Profit & Loss (subscription)

Why is 360T buying an ECN?

Market Savvy 

A $142 Billion Fund Says Dollar Rally Done, Now EM Can Shine – Bloomberg

The dollar’s run is ending and it’s time to return to emerging market currencies after their two-month slump, according to AMP Capital Investors.

Renminbi Strength Lets China Central Bank Loosen Grip – Financial Times (subscription)

Emerging market rout has so far spared PBoC, but currency faces headwinds.

Lira Falls Almost 2% After Gloomy Manufacturing Survey – Financial Times (subscription)

Turkey’s currency took a blow, sinking almost two per cent on the US dollar after a survey of manufacturers pointed to a deeper slowdown in the sector amid a further increase in price pressures.