Top Headlines

Dollar Firm After Bounce from Lows, Yuan Slips on China Downgrade – Reuters

The dollar held firm, having rebounded from 6½-month lows against its major peers helped by a rise in US Treasury yields, while the yuan eased after Moody’s cut its sovereign rating on China due to concerns over the country’s soaring debt.

China’s Stocks, Yuan Erase Losses Triggered by Moody’s Downgrade – Bloomberg

China’s financial markets quickly brushed off Moody’s Investors Service’s decision to cut its rating on the nation’s debt for the first time in almost three decades, with stocks, bonds and the currency little changed.

London Stocks Eye $1.30 Sterling Sweet Spot – Financial Times (subscription)

Index of UK revenue earners turns positive since June while FX stocks hold their nerve.

BlueBay Turns Short Pound as ‘All Roads’ Point to Hard Brexit – Bloomberg

The pound is heading lower whatever the outcome of the UK’s elections, according to BlueBay Asset Management.

Euro Enjoys Renaissance as Investors Pivot to Continent – Financial Times (subscription)

Macron’s win helps currency become best performing in G10 this year.

Banks’ Bond Trading Roars Back in First-Quarter but FX Lags Badly – Reuters

Bond trading revenue at the world’s top banks rebounded sharply in the first three months of the year as strong activity in credit and interest rate products eclipsed the lowest currency trading volume in over a decade, a survey showed.

Euronext and FastMatch: the Perfect Combination? – Profit & Loss

Not only is this a deal that has long been rumoured (only the identity of the buyer was unknown) it also appears to be a deal that makes a great deal of sense.

France Makes Brexit Pitch to Wall Street Banks in New York – Reuters

More than 20 banks and asset management firms are in advanced discussions with regulators in France about shifting jobs there following Britain’s vote to leave the European Union, former Bank of France chief Christian Noyer said.

The New Gold Rush – Europe’s OTC Market Data Transparency Push – Financial Times (subscription)

As new regulations loom, infrastructure providers are stepping up their efforts.

Regulatory News

US CFTC Seeks Bigger Budget Than White House Proposal – Reuters

The Republican-led US derivatives regulatory agency is splitting with the White House over how large its fiscal 2018 budget should be, saying it needs extra funds to help carry out its mission.

ECB Warns on Risk of ‘Abrupt’ Bond Market Shake-Out – Financial Times (subscription)

The reliance of the eurozone’s financial system on the policies of its central bank have been laid bare in the European Central Bank’s latest financial stability review, which highlights the risks posed by attempts to rein in extraordinary monetary stimulus.

US Financial Council Reimagined as Boon, Not Bane, for Wall Street – Reuters

The Financial Stability Oversight Council (FSOC), which brings together all US financial watchdogs, used to be the scourge of Wall Street but under Treasury Secretary Steven Mnuchin it can serve to ease its regulatory burdens.

Fiduciary Rule Survives Critics for Now – Wall Street Journal (subscription)

Labor Department clears retirement-savings regulation, ending uncertainty for brokers and investors.

House GOP Fight Delays Dodd-Frank Repeal – Politico

An internal dispute over debit card fees is threatening to stall a top Republican priority.

Company News 

NEX Infinity Launches with Spot FX – Profit & Loss

NEX Optimisation will be launching its new NEX Infinity platform in July, when its clients will be able to start testing spot FX and cash equities in the Infinity distributed ledger. 

Cürex Hires Cudahy – Profit & Loss

Kevin Cudahy joins Cürex Group in New York as a managing director, business development.

Barclay CTA Index Gains 0.16% in April – Profit & Loss

Managed futures traders gained 0.16% in April, according to the Barclay CTA Index compiled by BarclayHedge. Year-to-date, however, the Index remains down -0.66%.

Bitcoin’s Unlikely Evangelist: Fidelity CEO Abigail Johnson – Wall Street Journal (subscription)

In a rare public speech, she urges making digital currency more accessible for individuals and institutions.

R3 Raises $107 Million – Profit & Loss

This represents the largest single investment in a firm providing distributed ledger technology (DLT) services to date.

Market Savvy 

Currencies Weaker Across the Board in Asia, Renminbi Lower After China Downgrade – Financial Times (subscription)

China’s renminbi is sitting weaker after Moody’s Investors Services cut its credit rating on the country.

Rand Continues to Strengthen on Prospect of Zuma Removal – Financial Times (subscription)

The South African rand has strengthened past 13 per dollar for only the second time since Jacob Zuma sacked his finance minister in March, after reports suggested the president himself could be on the way out amid growing pressure from within the ruling African National Congress.

India Markets Fall on Raids Across Line of Control With Pakistan – Bloomberg

The rupee and stocks extended losses after the Indian Army said it launched military raids into a Pakistan-controlled part of Kashmir to destroy camps hosting terrorists.