Top Headlines

Euro Headed for Worst Week Since 2016 After ECB Holds Off on Rate Hikes – Reuters

The euro was headed for its biggest weekly loss in 19 months after the European Central Bank unexpectedly said it would keep interest rates at record lows well into next year.

Taper Without the Tantrum as Draghi Pulls Off Virtuoso Performance – Bloomberg

For European financial markets, it’s apparently all in the delivery.

Dollar Touches 2018 High After ECB ‘Curveball’ – Financial Times (subscription)

The Draghi effect is setting the pace on currency markets, with the dollar index benefiting from an exposed euro after the dovish feel to the ECB’s plans to end stimulus.

Bank of Japan Keeps Rates on Hold in Contrast to Fed and ECB – Financial Times (subscription)

The Bank of Japan has kept monetary policy on hold, standing firm against the global move towards tighter policy among the world’s heavy-hitting central banks.

Global FX Code Gains Adoption But Last Look Is a Thorny Issue – Tabb Forum

Citing a rapid increase in the number of signatories from every corner of the foreign exchange markets, the Foreign Exchange Professionals Association (FXPA) held a webinar on May 30 to discuss the status of the FX Global Code on the one-year anniversary of its publication.

Regulatory News

The EU Is Emerging as the New Sheriff for Global Financial Markets – Bloomberg

European Union regulators are seeking greater influence over the supervision of financial companies, including those based in the US, such as CME, and in the UK once Britain leaves the bloc.

Problems Remain with Op Risk Standardised Approach, Say Banks – Risk (subscription)

The final version of the Basel Committee on Banking Supervision’s operational risk capital rules is an improvement, but will still leave banks and regulators with multiple headaches as they go about implementing it, op risk experts say.

Volcker ‘Fix’ may Cause New Headaches for Wall Street – Reuters

A proposal to simplify a rule banning banks from proprietary trading, rather than making life easier for Wall Street, could ensnare billions of dollars’ worth of assets not currently caught by the regulation.

Crypto News

SEC Official Clarifies Bitcoin, Ether Aren’t Securities – Profit & Loss

A Securities and Exchanges Commission (SEC) official explicitly stated that he does not consider bitcoin and ether (the native cryptocurrency of the Ethereum network), to be securities.

Bitcoin Futures Fueling ‘Gut-Wrenching’ Declines, Tom Lee Says – Bloomberg

Some of the recent “gut wrenching” weakness in Bitcoin, which dropped as much as 20 percent earlier this week, may be due to the expiration of futures linked to the cryptocurrency, according to Thomas Lee, head of research at Fundstrat Global Advisors.

Cryptocurrency Exchange itBit Adds Four New Currencies – Waters Technology (subscription)

ItBit’s bid to offer custodial services for Ethereum, Bitcoin Cash, Litecoin and Stellar Lumens—along with Bitcoin—was approved by the New York State Department of Financial Services last week. This brings itBit to five cryptocurrencies.

A Tiny Crypto Firm Making Bitcoin Trades Worth Hundreds of Millions of Dollars Is Taking a Page Out of Goldman Sachs’ Playbook – Business Insider

The blockchain company Paxos has brought on a trading vet to join its itBit OTC desk, Business Insider has learned.

Market Savvy 

China’s Yuan to Get Hit With $20 Billion Dividend Onslaught – Bloomberg

China’s currency has had a bumpier ride in the past several weeks than it’s seen since it stabilized against the dollar in 2017, and further turbulence may be in store as companies prepare to make a welter of dividend payments abroad.

Mexican Peso Indicator Shows Weakness Ahead – Bloomberg

Mexico’s peso looks set for more pain as the country’s presidential vote approaches, according to a technical indicator.

Argentina Peso Takes Another Hit Amid Central Bank Concerns – Financial Times (subscription)

Argentina’s peso took another hit, depreciating from 26 pesos to the dollar to 27.5 pesos amid concerns about the central bank’s ability to stop the slide.