Top Headlines
Derivatives’ Positions Outstanding Decrease: BIS – Profit & Loss
The increase in OTC derivatives positions that took place in the first half of 2016 reversed in the second according to the latest data from the Bank for International Settlements (BIS).
Dollar Close to Eight-Week High vs Yen as Risk Appetite Recovers – Reuters
The dollar steadied close to an eight-week high against the safe-haven yen as risk appetite – historically high in recent days – recovered from a dip in Asian trading when US President Donald Trump abruptly fired the head of the FBI.
- Dollar Softens in Asia Trade After Comey Dismissed – Financial Times (subscription)
- Dollar Rises as Focus Returns to Rates – Wall Street Journal (subscription)
Sterling Hits Three-Week High vs. Euro Before Bank of England ‘Super Thursday’ – Reuters
Sterling hit a three-week high versus the euro and climbed towards $1.30 as traders awaited this week’s Bank of England inflation report and policy meeting.
BOE Preview: Pound, Gilt Yields Seen Capped on Brexit Caution – Bloomberg
The Bank of England is likely to revise higher its inflation outlook for the year, though Governor Mark Carney is bound to talk down expectations for a rate increase anytime soon, analysts say ahead of this week’s monetary-policy review.
New Lows: Euro Still in the Dumps After Macron Win – Financial Times (subscription)
The euro’s post-vote stumble continues, with the currency hitting a new low after the election of Emmanuel Macron as president of France.
Macron’s Ascent Stokes a Fight Over Euro in Germany – Bloomberg
Emmanuel Macron’s ascent to the French presidency is stoking an election-year fight over the euro in Germany, as the Social Democrats tell Chancellor Angela Merkel his resounding victory is the signal for her to dump fiscal austerity in Europe.
Brazil Real, Mexican Peso Rebound from Lows; US Rates Eyed – Reuters
The Brazilian and Mexican currencies inched higher, rebounding from the previous day’s declines as investors awaited further clues on the future pace of US interest rate hikes.
This Is the Five-Word Message That Got a Citigroup Trader Fired – Bloomberg
A five-word message to a rival banker was enough to cost former Citigroup trader David Madaras his job as the bank fought to appease regulators probing the foreign-exchange scandal engulfing the industry.
Deutsche Bank Urges Caution Over Sleepy FX Market – Financial Times (subscription)
Shhh. The markets are asleep, with major currencies undershooting forecasts of crushing dullness.
Stress Sign: Black Market’s Cheaper Than Official Naira Rate – Bloomberg
Nigeria’s new currency market is showing just how severe the country’s dollar shortage is.
Regulatory News
EU Regulators Prepare to Close Brexit Loopholes – Risk (subscription)
Isda AGM: new guidelines aim to prevent EU brass plates with large London operations.
Rethink Urged Over Basel’s Counterparty Exposure Framework – Risk (subscription)
Industry calls for softening of SA-CCR amid claims it could lead to doubling of calculated exposures.
MiFID II Will Have Far-Reaching Consequences – Bloomberg
While European regulators don’t have direct influence on firms domiciled outside of the EU, the new rules will put indirect pressure on non-EU domiciled firms.
Michael Held encourages compliance officials to ‘pay attention to the root causes of misconduct’.
Company News
Blankfein Says Banks Should Be Unshackled from Volcker Rule – Bloomberg
US banks with federally insured deposits should be freed from Volcker Rule restrictions that prevent them from taking some types of principal risk, a market-making function that provides a valuable public service, Goldman Sachs Group Chief Executive Officer Lloyd Blankfein said.
Fed’s Kashkari: Blockchain Has More Potential Than Bitcoin Itself – Reuters
Minneapolis Federal Reserve Bank President Neel Kashkari said that blockchain technology has more potential for being adopted in the future than bitcoin itself.
GreenKey Files for MiFID II Patent – Profit & Loss
GreenKey Technologies, a creator of an artificial intelligence (AI) and voice-driven collaboration tool for financial market participants, says the US Patent and Trademark Office has accepted its application for human speech-to-text and subsequent interpretation of spoken financial trades in a fast and accurate manner.
Two Sigma to Buy Interactive Brokers’ Options Trading Unit – Bloomberg
Two Sigma Securities agreed to buy Interactive Brokers Group’s options market-making business, acquiring a pioneer of electronic trading to forge into derivatives trading.
Tim Joyce Joins Credit Suisse as Head of London FX Options Trading – Finance Magnates
Credit Suisse gets a new high-profile industry executive for its FX options trading desk in London.
Market Savvy
Australian Dollar Still Unsettled After Weak Retail Sales – Financial Times (subscription)
The Australian dollar is still sitting at the bottom of the currencies ladder despite declines for other majors during the European morning session.
C$ Weakens as Oil Dips, Greenback Climbs – Reuters
The Canadian dollar weakened against its US counterpart as oil priced dipped and the greenback climbed against a basket of major currencies.
Crown Slides as Czech, Hungarian Inflation Slows – Reuters
The Czech crown reversed an early strengthening and Hungarian government bonds firmed after the two countries released lower than anticipated inflation figures for April.