Top Headlines

Dollar Inches Up as Fed Eyed for June Rate Hike Steer – Reuters

The dollar inched up against most major currencies, as investors eyed a US Federal Reserve statement later in the day for guidance on whether bets for a June interest rate hike are justified.

Gundlach Says US Dollar Will Stay on Gentle Weakening Pattern – Reuters

The US dollar has been and will likely continue to be on a gentle weakening pattern, Jeffrey Gundlach, chief executive at DoubleLine Capital, said on an investor webcast.

Why Currency Traders Should Literally Follow Trump Tweets – Bloomberg

When Donald Trump moves the foreign-exchange market with 140 characters or less, currency traders ought to jump on for the ride.

Pound Holds Steady as Brexit Talk Outweighs Positive Data – Reuters

Sterling held below seven-month highs versus the dollar, as a volley of headlines suggesting talks on Britain’s exit from the European Union could be difficult outweighed the impact of forecast-beating construction data.

Yen Backed by RBC on Scepticism Over Risk Appetite – Financial Times (subscription)

FX analysts expect Japanese currency to spring a surprise during Golden Week.

Key Questions for City Over Post-Brexit Euro Clearing – Financial Times (subscription)

Alarm bells are ringing in both Westminster and the City as Brussels intends to explore how to impose EU control over London’s dominance of the euro clearing business.

C-View: “We Know Where the Bodies are Buried” – Profit & Loss (subscription)

Speaking at Profit & Loss’ Forex Network London, Paul Chappell, CIO of buy side firm C-View, explained how liquidity trends are being negatively impacted by the Fix scandal.

FX Market Structure Hampers Best Ex – Markets Media

Asset managers will find demonstrating that they have achieved best execution on their foreign exchange trades more difficult once MiFID II goes into effect on January 3, 2018.

Populist Fears Ease as Focus Shifts to Policies Not Personalities – Financial Times (subscription)

Politicians’ ability to turn manifestos into reality becomes a key question for markets.

Regulatory News

Jay Clayton Confirmed as SEC Chairman – Wall Street Journal (subscription)

The Senate approved President Donald Trump’s choice to lead the Securities and Exchange Commission, elevating a Wall Street lawyer who hopes to turn around the decline in the number of public companies over the past 20 years.

Trump’s Expected OCC Pick Signals Shift at Regulator That Could Ripple Through Financial Markets – Wall Street Journal (subscription)

The president is expected to name Joseph Otting to replace Comptroller of the Currency Thomas Curry.

‘This Is a Middle Finger to America’: House Hearing on Wall Street Rules Boils Over – Business Insider

A hearing on Tuesday to address the Financial Choice Act, the Republican proposal to repeal the 2010 reform law, quickly descended into an aggressive argument between members of the House Financial Services Committee, who are supposed to address the chairman of the committee, Jeb Hensarling, rather than one another.

Wall Street Elite Find It Hard to Bank on Trump’s Breakup Talk – Reuters

At an annual gathering of the world’s most powerful thinkers and trendsetters in Beverly Hills this week, business leaders and major investors said they have gotten used to dismissing most things that President Donald Trump says or tweets.

Federal Reserve Wants a Say on US Fintech Rules: Brainard – Reuters

The Federal Reserve wants to give input on future rules governing how technology companies move into consumer lending markets, Fed Governor Lael Brainard said.

Company News

Invast Global Adds Lucid – Profit & Loss

Invast Global has announced a new partnership with Lucid Markets, meaning clients of the Invast Global multi-asset prime services facility, PurePrime, will have access to proprietary FX pricing from the market making firm.

XTX Eyes US Expansion with Swanson Hire – Profit & Loss

Eric Swanson has been named as CEO of XTX Markets (Americas), effective June 1.

TNS Unveils Encryption Service – Profit & Loss

Transaction Network Services (TNS) has laucnhed TNS Encryption Service that allows financial market participants to further protect the privacy of their trading data.

JPMorgan to Move Hundreds of Staff to Three EU Offices on Brexit – Bloomberg

JPMorgan plans to move hundreds of London-based bankers to expanded offices in Dublin, Frankfurt and Luxembourg as it prepares for the UK to lose easy access to the European Union’s single market after Brexit, the firm’s head of investment banking said.

Eurex Geared for Euro Swaps Clearing Ruling – The Trade

Frankfurt-based Eurex is seeing a rise in demand for euro-denominated derivatives clearing, as a decision from Brussels on the future of the lucrative business looms near.

Bloomberg Gets Approval to Issue LEIs – Finextra

Bloomberg can now issue and maintain LEIs for entities through its LEI request and registration portal:

Market Savvy

New Zealand Dollar Jumps as Unemployment Rate Drops – Financial Times (subscription)

The New Zealand dollar is the best-performing major currency in Asia in the wake of strong labour market data.

LatAm Currencies Seesaw Ahead of Fed Decision, US Data – Reuters

Latin American currencies seesawed as traders stood pat ahead of a Federal Reserve policy decision and key US jobs market data later in the week.

Investors Start Taking Notice of Nigeria’s Latest Naira Plan – Bloomberg

Foreign investors are warming to the foreign-exchange window that Nigeria opened last week to ease a severe shortage of dollars, according to the head of the trading platform overseeing it.