Top Headlines

Euro Rebounds to Two-Week High on Bets ECB to Signal Stimulus Unwind – Reuters

The euro climbed to a two-week high as investors raised their bets that the European Central Bank will next week signal a winding down of its vast bond-buying program by the end of this year.

Sterling at Two-Week Highs on Broad Dollar Rout – Reuters

Sterling climbed to more than two-week highs, helped by general dollar weakness thanks to a broadening rally in the euro currency, though concerns over Brexit negotiations capped gains.

One Conclusion from Trade Tensions: The Dollar Is a Likely Loser – Bloomberg

For investors struggling to handicap whether US President Donald Trump will stomach a full-blown trade war, some analysts boil the risks down to this: the dollar stands to lose.

Swaps Data: Anatomy of a Wild Week in Dollar Swaps – Risk (subscription)

Chaotic Italian politics jolted rates markets – including US dollar interest rate swaps.

Emir Considerations Are a “Grave Concern”: CME Clearing – FOW (subscription)

European rules on early intervention in the recovery process are extremely bad and disruptive, according to Sunil Cutinho.

FX Needs a Hero Again – Profit & Loss (subscription)

Now is the time to end the period of relative silence and speak out.

Regulatory News

Senate Banking Panel Set to Vote on Clarida, Bowman Nominations for Fed Posts – Wall Street Journal (subscription)

The Senate Banking Committee is set to vote Tuesday on the nominations of two of President Donald Trump’s picks for the Federal Reserve’s board of governors, including economist Richard Clarida to become its vice chairman.

Left-Leaning Regulators Split on Volcker Changes – Wall Street Journal (subscription)

An effort to revamp the Volcker rule has drawn the support of some left-leaning regulators.

SEC Chair to Stress Cyber Risk in Congressional Budget Testimony – Reuters

The head of the US Securities and Exchange Commission (SEC) will warn of the need to boost its defenses against “advanced” and “persistent” cyber threats when he asks Congress on Tuesday for more funding, according to prepared remarks.

Crypto News

US Must Be “More Thoughtful” About Bitcoin: CFTC – FOW (subscription)

US regulator has been central to the bitcoin regulation debate since bitcoin futures were launched in December.

Shady ICO Issuers Are Taking ‘Bags of Cash’ to Border, US Says – Bloomberg

A top financial regulator gave a strong warning Wednesday that U.S. scrutiny of initial coin offerings is just getting started.

Clearing Executives Remain Skeptical on Blockchain – Waters Technology  (subscription)

Senior CCP specialists say some emerging technologies have promise, but significant hurdles remain.

Coinbase Expands with Deal for Broker-Dealer Keystone Capital – Wall Street Journal (subscription)

Coinbase, one of the leading cryptocurrency and bitcoin businesses, is acquiring a securities dealer that the company hopes will allow it to expand into the red-hot coin-offerings market.

Cryptocurrency Exchange Huobi Wants to Become Decentralized – Bloomberg

Once the project is complete, Huobi plans to migrate its operations onto this blockchain, according to a statement.

Fidelity, a Household Name in American Investing, Is Plotting a Big Move Into Cryptocurrency Trading – Business Insider

Fidelity Investments, a firm that oversees $2.5 trillion in managed assets, is hiring to build a digital asset exchange, an internal job ad reveals.

Company News 

Galinov Exits Fastmatch – Profit & Loss

Market sources tell Profit & Loss that Dmitri Galinov, CEO of Fastmatch, has left the firm. Fastmatch was bought by exchange group Euronext one year ago.

Deutsche Bank Plans to Cut Investment Bank’s Costs By One Billion Euros: CFO – Reuters

Deutsche Bank’s investment banking arm will bear more than half of the group’s planned cost cuts its chief financial officer said, as he admitted that the lender would continue to lag peers in the second quarter.

Nomura Hires Former BNP Paribas Trader for Senior FX Role – Financial News (subscription)

Asa Attwell is joining Nomura as its head of Emea foreign exchange and emerging markets, according to a memo.

Market Savvy 

Political Uncertainty Drives Brazilian Real to Two-Year Lows – Financial Times (subscription)

Investors have taken the gloves off against the Brazilian real in retaliation for rising political uncertainty, driving it to two-year lows of about R$3.85 against the dollar.

Oil Holds the Key as Asian Currency Rally Reaches Crossroads – Bloomberg

Emerging Asian currencies have bounced back over the past two weeks as oil prices have fallen. 

Growth to Help CEE Currencies Shake Off Impact of Dollar Rally – Reuters

Central Europe’s robust economic growth should help its most liquid currencies firm by 2-3 percent against the euro in the coming year, even though their near-term outlook may remain shaky, a Reuters poll of 36 analysts showed.