Top Headlines

FX ‘Cartel’ Traders Said to Inch Toward Deal to Face US Trial – Bloomberg

Three British currency traders charged with conspiring to manipulate markets look set to agree on deals to surrender to US officials by the end of August, according to people with knowledge of the situation.

Dollar Hits One-Week High vs Yen, Eyes on Jobs Data – Reuters

The dollar recovered more ground against the yen ahead of US jobs data that should, judging by the rhetoric of US central bankers, cement a rise in Federal Reserve interest rates later this month.

Sterling Trades Lower Before UK Construction Data – Reuters

Sterling traded below seven-month highs against the dollar as investors awaited data on the construction sector in Britain while keeping an eye out for polls on the country’s general election due in less than a week.

There’s Only One Type of Brexit Investors are Braced for – Financial Times (subscription)

Rally in government bonds and a pound that can’t break higher underline market fears.

Renminbi Pulls Back from Six-Month High – Financial Times (subscription)

China’s renminbi eased from a six-month high in early trade amid increased focus this week on the currency.

China Steps Up Support for Its Currency – Wall Street Journal (subscription)

Investors say Beijing seeks to build confidence in economy amid concerns about a debt buildup and crackdown on loose lending.

Platforms Report Monthly Data – Profit & Loss

The first four FX platform providers to report average daily volume (ADV) data indicate May maintained the momentum of the previous months.

Five Markets Charts That Matter for Investors – Financial Times (subscription)

The euro, S&P 500, mutual fund managers, central banks and frontier markets in focus.

Is Big Brother Watching You? – Profit & Loss (subscription)

Galen Stops looks at how chat room activity is being monitored and controlled following recent collusion scandals.

France is Upping the Stakes in the Battle for London’s €930 Billion a Day Clearing Business – Business Insider

One of the most senior officials in European central banking has staked France’s claim to attract the lucrative euro clearing business after Brexit, saying he can’t see how operations can be allowed to stay in the UK once it has left the EU.

Regulatory News

Fed Plans to Give Wall Street More Help on Bank Stress Tests – Bloomberg

The Federal Reserve plans to provide more information on how its stress tests will trigger losses for bank loan portfolios, a move that should give lenders an advance look at how they might fare in the annual exams that have huge implications for how they run their businesses.

EU Privacy Rule Offers Silver Lining – Markets Media

The EU’s General Data Privacy Regulation, which goes into effect in May 2018, may prove to be a greater boon than a bane for financial services firms globally.

SEC Wades Into ‘Fiduciary Rule’ Debate – Wall Street Journal (subscription)

Agency seeks input on writing own version of Labor Department rule; fiduciary rule’s backers worry SEC would water it down.

Company News

LCH Sees ForexClear Momentum – Profit & Loss

Clearing house LCH says it is seeing “good momentum” in its ForexClear service heading into the second half of the year.

FastMatch Moves to Flat Fee Structure – Profit & Loss

FastMatch is moving its fee structure for trading on the platform to a flat rate for all participants.

Green Joins Lumint as EVP – Profit & Loss

Currency overlay manager Lumint has hired David Green as an executive vice president. He will continue to be based in Boston in his new role.

BNY Mellon Appoints Neal to Executive Committee – Profit & Loss

BNY Mellon has appointed Michelle Neal, CEO of BNY Mellon Markets Group, to the company’s Executive Committee.

New Foreign Exchange Code Could Mean Lower Costs – Wall Street Journal (subscription)

A new code of conduct for the foreign exchange markets could lead to lower costs for companies exposed to these markets, experts say.

FX Ethics Revamp Spurs Training at Citigroup, App for Traders – Bloomberg

Traders in the $5.1-trillion-a-day currency market are getting a refresher course in good behavior.

Chinese Bitcoin Exchanges Resume Withdrawals After Freeze – Reuters

Major Chinese bitcoin exchanges have started to resume allowing withdrawals of the cryptocurrency after nearly a four-month freeze that followed increased scrutiny from the central bank.

Market Savvy

Yen Weak as Other Currencies Advance on Flat US Dollar – Financial Times (subscription)

The yen was the worst-performing major currency, while a flat US dollar allowed most other pairs to creep higher.

Emerging FX Suffer on Tumbling Oil; Stocks Gain – Reuters

Emerging stocks sailed higher though currencies came under pressure from tumbling oil and commodity prices and a steady dollar as investors awaited key US jobs data to glean hints about the trajectory of Federal Reserve interest rates.

Budapest Stocks Hit Record High, Crown Tests 3½ Year Peak – Reuters

Budapest stocks hit a record high and the Czech crown was testing a 3½ year peak after economic data from the United States and Central Europe lifted investor confidence.