Top Headlines

Currency Trading Volumes Hit Record High in First-Quarter: CLS – Reuters

Foreign exchange trading volumes rose to a record high in the first three months of the year, data from CLS showed, as a rise in volatility from multi-year lows encouraged more currency trading.

Euro Edges Back to $1.24 Level as Dollar Slips Despite Yield Rise – Reuters

The euro edged back towards $1.24 as investors shrugged off a rise in long-term US bond yields and sold the dollar.

Sterling Falls After Disappointing UK Retail Sales – Reuters

Sterling fell after British retail sales recorded their biggest quarterly fall in a year during the three months to March after unusually cold weather kept shoppers at home.

Hong Kong Dollar Strengthens to Four-Week High – Financial Times (subscription)

The Hong Kong dollar touched its strongest level in more than four weeks, hours after the city’s de facto central bank said the market had “strong” confidence in its ability to support the currency.

Weaker Yen Caught Between Whims of Politics and Trade Worries – Financial Times (subscription)

Expectations of a stronger currency derailed in part by Abe’s woes.

Goldman Sees 14% Brazil Real Jump by July; Says Buy Stocks – Bloomberg

The bank that warned South America’s biggest economy was sinking into a depression back in 2015 now has Brazil as among its top picks in emerging markets that are “powering ahead” in face of rising global interest rates and protectionism fears.

JP Morgan, Citigroup Win Top FX Market Share in Greenwich Ranking – Bloomberg

JP Morgan and Citigroup are pulling ahead of competitors in the world’s biggest financial market, according to Greenwich Associates.

Progress Is Not Always Positive – Profit & Loss (subscription)

There is so much chatter about financial markets withering and dying if they do not go the fully quantitative path, but is that right?

Alternative Benchmarks Emerge to Challenge Libor Dominance – Financial Times (subscription)

Industry wary of change because many loans and swaps rely on reference rate.

Regulatory News

Mifid II Author Warns Brexit Could Undo Years of Financial Reform – Financial News (subscription)

A leading European politician who spent the best part of a decade helping to shape post-crisis financial regulation has warned that Brexit risks reversing much of what makes markets safer today.

Is the Financial Sector Safe Enough Yet? – Financial News (subscription)

There is debate about whether bank resolution plans are credible despite all the effort that has gone into them.

Bank Rule Changes Chip Away at Those Pesky Stress Tests – Bloomberg

The annual exams lose their effectiveness as they become more opaque.

Company News

Pragma Signs FX Global Code SoC – Profit & Loss

Pragma has announced it has committed to adopting the principles of the FX Global Code as a market participant.

Kamrath Joins Cryptocurrency Technology Firm – Profit & Loss

Ray Kamrath has joined Rubicon Markets, a firm that develops trading and exchange technologies for use in the cryptocurrency ecosystem, as chief marketing officer.

Indian Crypto Traders Scramble After RBI Crackdown – Financial Times (subscription)

Central bank order excludes virtual funds from access to financial system.

Market Savvy 

Bullish Bets on Most Asian Currencies Rolled Back as Dollar Perks Up – Reuters

Investors trimmed their long positions in most emerging Asian currencies in the last two weeks, a Reuters poll showed, as the dollar bounced back amid improving appetite for riskier assets and upbeat US economic data.

Loonie Extends Drop After Poloz Reiterates Caution on Rate Rises – Financial Times (subscription)

The Canadian dollar extended its decline against the greenback after the country’s central bank governor reiterated the need for a cautious approach to interest-rate rises despite the improving outlook for the economy.

Bitcoin Whale Sightings Are Leaving Cryptocurrency Traders Jumpy – Bloomberg

Sudden market swings in the cryptocurrency this week have left price charts looking like a jack-o-lantern’s smile.