Top Headlines
Euro Rallies to Ten-Day High After ECB Says to Discuss Unwinding Stimulus – Reuters
The euro rose to a ten-day high after European Central Bank officials said an end to the bank’s bond-buying programme by end-2018 was plausible and that inflation was rising back to its target.
Sterling Hits 10-Day High But Brexit Cloud Keep Gains in Check – Reuters
Sterling rose as a weaker dollar and better-than-expected data earlier in the week buoyed the pound, but analysts said the British currency remained stuck in a trading range until there was more clarity about the economy and Brexit talks.
JPM Research Looks Into FX Trading Behaviour Around Events – Profit & Loss
The research looks at three specific surprise events, the Swiss National Bank’s decision to remove the EUR/CHF floor in January 2015, the Brexit vote in June 2016 and the 2016 US presidential election.
Investors’ Calm Over Trade Wars Holds for Now – Financial Times (subscription)
A meeting of G7 leaders will remind markets of the dangers of a full-blown trade war.
Firms Fear Brexit Will Force Them Out of Clearing: FIA Study – FOW (subscription)
The findings were launched at the industry body’s 11th annual IDX conference in London.
Fixing Foreign Exchange: Addressing Legacy Technology – The Trade
The battle with legacy technology systems is ongoing concern for many banking institutions, but arguably no more so than foreign exchange.
Regulatory News
Volcker Rule Changes Move Forward After SEC Votes on Overhaul – Bloomberg
The Securities and Exchange Commission voted 3-to-2 to seek public comment on the Volcker revamp, the last of five agencies that needed to sign off on the proposal.
Crypto News
Jump Trading, a Chicago-based firm, has built an OTC platform for electronic bitcoin trading, according to people familiar with the matter.
FAs Not Buying Crypto – Markets Media
Financial advisers showing continued strong preference for ETFs and nearly no commitment to cryptocurrencies.
Crypto Exchange Bitfinex Resumes Operations After Hacker Assault – Bloomberg
Denial-of-service attack had been launched against website.
Ripple CEO Says ‘Dozens’ of Banks will Use Its Cryptocurrency Product in 2019 – CNBC
Ripple will have “dozens” of banks using its blockchain product that requires a digital currency known as XRP to work, the start-up’s CEO told CNBC.
How Xunlei’s Lei Chen Pivoted to Blockchain – Financial Times (subscription)
The tech chief changed tack — but ran into trouble with regulators and investors.
Company News
Currenex Shifts Technology Focus to Regional, Mid-Tier Banks – Profit & Loss
Currenex is shifting the focus of its white label business to increasingly target regional and mid-tier banks, citing a number of broader industry-wide trends for this change.
INTL FCStone Subsidiary Introduces Web-Based Platform for Instant FX Trading – Profit & Loss
The Global Payments Division of INTL FCStone’s London based subsidiary, IFL, has introduced FXePrice, a proprietary Web-based platform allowing IFL local currency liquidity providers to streamline executable prices in 140 currencies and 175 countries.
ThinkCoin and Gmex Team on Blockchain-Based Multi-Asset Exchange – Fin Extra
A multi-asset blockchain-based exchange that will enable the trading of cryptocurrencies, equities, FX, commodities and more, TradeConnect will replace commissions with a levy on all trades that will be rebated to network participants in proportion to their participation.
Era of “Futurisation” Is Over: Exchange Leaders – FOW (subscription)
Senior exchange leaders told an IDX panel the futures and swaps markets should exist in parallel.
Market Savvy
Mexican Peso Extends Drop on Nafta Fears – Financial Times (subscription)
The Mexican peso extended its decline, briefly hitting a 15-month low, as hopes dimmed over the prospects for a new North American Free Trade Agreement following a sharp escalation in the tit-for-tat trade war between the US and Mexico.
Brazilian Real Back on the Ropes Despite Central Bank Intervention – Financial Times (subscription)
The Brazilian real was back at a two-year low, as the brief relief rally provided by the country’s central bank faded.
South African Assets Tumble as Ramaphosa’s Growth Pledge Palls – Bloomberg
The rand weakened, yields on benchmark bonds rose and retail and banking stocks fell as a report showed that South Africa’s economy shrank the most in nine years in the first quarter, casting a pall over President Cyril Ramaphosa’s promise to boost growth.