Top Headlines

Dollar Hits Strongest Level of 2018 – Financial Times (subscription)

The US dollar traded at its strongest level for this year minutes out from the Federal Reserve’s May policy meeting.

Short the Dollar as One of Your Summer Trades, Nomura Says – Bloomberg

Temperatures are rising along the US East Coast, but demand for the dollar is about to cool, according to a list of 12 summer macro trade ideas from Nomura Holdings.

Sterling Trims Gains After Weak PMI Data Sink Rate Bets – Reuters

Sterling trimmed gains and stocks hit the session highs after a survey showed Britain’s services sector struggled to recover in April from a slowdown in March, further dimming expectations of an interest rate hike next week.

Bank of England Leads Central Bank Policy Retreat – Financial Times (subscription)

While the US Federal Reserve marches on towards further rate rises, other G10 central banks are beating a retreat – and none more so than the Bank of England.

Euro Bounces Off Four-Month Low, Dollar Bulls Pause After Fed Meeting – Reuters

The euro rose off four-month lows as the dollar’s recent rally came to a halt after the Federal Reserve did little to alter market expectations for further interest rate rises this year.

FX Market Inefficiency Leaves Money on Table for Profit Seekers – Bloomberg

Inefficiency in the $5.1 trillion-a-day foreign exchange market makes it fertile ground for investors seeking to maximize returns, in the view of strategists at Deutsche Bank.

SocGen Is Ready to Pay Up to $1 Billion to End US Probes – Bloomberg

Societe Generale is nearing an agreement to pay as much as $1 billion to resolve two US probes – into the rigging of benchmark interest rates and allegations of bribery in Libya – according to people familiar with the matter.

Bitcoin Analysts Brace for ‘Dogfight’ With Narrowing Trading Range – Bloomberg

The narrowest trading range in about six months has Bitcoin technical analysts scouring price charts to help figure out whether the biggest cryptocurrency is poised to build upon its April rally.

Goldman Sachs to Open a Bitcoin Trading Operation – The New York Times

Most big banks have tried to stay far away from the scandal-tainted virtual currency Bitcoin.

The Example, Deterrent and Message – Profit & Loss (subscription)

A good data analytics framework, indeed the correct use of data, can also go a long way to avoiding a repeat of last week’s sad events.

A Closer Look At: A New Approach to Commodities – Profit & Loss (subscription)

Ronan Julien, global head of commodity derivatives e-distribution at BNP Paribas, talks about how the bank is doing things differently in the commodities space. 

Regulatory News

Singapore Sets Date for Mandatory OTC Clearing – Profit & Loss

The Monetary Authority of Singapore (MAS) says it will introduce regulations to require OTC derivatives to be cleared on central counterparties (CCPs) with effect from 1 October 2018.

BoE Issues Rule for Reporting CCP “Incidents” – Global Capital (subscription)

The Bank of England, the primary regulator of UK clearing houses, has decided to go ahead with a new rule that would compel CCPs to report issues with their servers and other technology systems.

Obama Holdout Stands in Way of US Bank Deregulatory Wave – Financial Times (subscription)

Martin Gruenberg, the final Democrat among top US bank watchdogs, is a growing source of frustration to Wall Street, as the last man standing in the way of a deregulatory wave.

Federal Judge Backs SEC Freeze of Blockchain-Linked Funds – Bloomberg

A federal judge ruled three business associates of a financial technology company are likely to lose at a trial over government accusations that they sold unregistered stock in the firm after a rally linked to cryptocurrency.

Company News

Nex, CME Volumes Down in April, But Up YoY – Profit & Loss

This trend is generally consistent with volumes being reported by other platforms.

Bank of England Appoints Financial Analyst Van Steenis as Advisor – Reuters

The Bank of England has named former Schroders and Morgan Stanley banking analyst Huw van Steenis as a senior adviser on the future of the British financial system.

CVC Capital Partners Acquire Oanda – Profit & Loss

Private equity group CVC Capital Partners’ Asia Fund IV has had an offer accepted to acquire all of the outstanding equity of online retail trading technology and analytics provider Oanda Global Corporation.

Market Savvy

Slowing Growth is Another Headwind for Asian Currencies – Reuters

The spectre of slower global economic growth presents another threat for Asian currencies, many of which are already under pressure from rising US yields and capital outflows.

Turkish Lira Sinks to New Record Low as Inflation Rises – Financial Times (subscription)

Turkey’s currency slumped to a new record low after data showed inflation at the highest level since December.

Argentine Peso Hits New Low Despite Emergency Rate Hike – Financial Times (subscription)

The currency is back on the ropes, sinking to a new record low as trading resumed following a two-day holiday.