Top Headlines

FXPA Presents ‘Global Code’ Webinar – Tune in May 31st

Join the Foreign Exchange Professionals Association (FXPA) for a webinar on Wednesday, May 31, that looks at “How Does the Global Code Apply to Me?”

Pound Under Pressure in Asian Trading Following YouGov Poll – Financial Times (subscription)

A YouGov poll showing support for UK Conservatives had fallen in the lead-up to next month’s general election has kept up focus on the British pound in Asian trading. 

Commodity Currencies Hit After Crude Prices Slide Almost 5% – Financial Times (subscription)

Commodity currencies came under selling pressure as key crude benchmarks tumbled almost five per cent.

Inflation Data Supports Yen as Dollar’s Rise Weighs on Other Currencies – Financial Times (subscription)

Major currencies found themselves on the back foot as the dollar edged higher during morning trade in Asia. 

China to Shift Renminbi Market Guidance to Ward off Depreciation – Financial Times (subscription)

China’s central bank will change the way it guides the renminbi exchange rate, a move that appears designed to discourage renminbi depreciation at a time when authorities are still concerned about capital flight.

US Dollar Finds Unusual Favor in Hong Kong – Wall Street Journal (subscription)

The greenback has been rising all year against the Hong Kong dollar, despite the pair’s peg. 

Buyside Urged to Help Fix FX – Markets Media

Simon Potter, head of markets at the New York Federal Reserve Bank, urged the buyside to read the new global code of conduct for foreign exchange and take an active role in improving the market.

Vanguard Says Currency Markets Fall Short in Curbing ‘Last Look’ – Bloomberg

Andy Maack’s vision of a fair currency market doesn’t include “last look,” a controversial practice that allows dealers to back out of losing trades.

The FoXy’s: Profit & Loss Readers’ Choice Awards: Market Makers – Profit & Loss

Profit & Loss readers cast large numbers of votes this year for their preferred market makers.

Mexico Buys Back 40 Billion Pesos of Local Currency Bonds – Reuters

Mexico’s government said it bought back 40 billion pesos ($2.16 billion) of local currency bonds, using part of the money it received from the central bank earlier this year to cut its debt.

Regulatory News

BIS Bank Reforms Poised for ‘Near Future’ – Financial Times (subscription)

A long-awaited package of reforms designed to stop banks gaming existing post-crisis rules will be finalised “in the near future”, according to the head of the committee that sets the worldwide standards.

Basel Opts for Aggregate Bank Capital Output Floor – Risk (subscription)

Banks will have more flexibility on use of internal models, but calibration still undecided.

Emir Reporting Relief for ETDs Causes Confusion – Risk (subscription)

Market participants unsure who will report client-side leg of exchange-traded derivatives trades to CCPs.

The BoE Develops a New Taste for Transparency – Financial Times (subscription)

Mark Carney’s expense details reach fresh heights in accountability.

Company News

T3 Unveils EM FX Index – Profit & Loss

Investors looking for exposure to emerging markets FX have limited options, with most EM indices offering exposure (currency hedged or otherwise) to local equity and bond markets.

Coinbase Suffers Outages Amid Bitcoin Surge – Reuters

Coinbase said it suffered outages this week as the bitcoin exchange saw “unprecedented traffic and trading,” with the digital currency hitting record levels.

Market Savvy

Yuan at Over Three-Month High, Ringgit Jumps on OPEC; Other Asia FX Drifts – Reuters

China’s yuan rose to a three-month high on Friday, and the Malaysian ringgit firmed to its strongest in nearly two years after OPEC and other oil producers agreed to keep output reduced for a further nine months, but most Asian currencies were directionless.

Latam Currencies Trade Sideways on Fed Rates Caution – Reuters

Most Latin American currencies traded sideways after the Federal Reserve dialled down some expectations that it would hike interest rates rapidly, while political uncertainty weighed on Brazilian markets.

C$ Pulls Back from Five-Week High as Oil Prices Slide – Reuters

The Canadian dollar weakened against its US counterpart, pulling back from a five-week high as oil prices sunk on disappointment that an OPEC-led extension of production cuts did not go further.