Top Headlines

FXPA Webinar: “FX Global Code: One Year Anniversary – Where are We?” – Profit & Loss

Join members of the Foreign Exchange Professionals Association (FXPA) on Wednesday, May 30, for a webinar on the “FX Global Code: One Year Anniversary – Where are We?” at 10am (Eastern US)/3pm (UK)/10pm (Singapore).

US-China Trade War Relief Sends Dollar to Five-Month Highs – Reuters

The dollar hit a five-month high after US Treasury Secretary Steven Mnuchin declared the US-China trade war “on hold” following their agreement to suspend threatened tariffs.

America Beware: Dollar Supremacy Is Not Forever – Financial Times (subscription)

Under Trump, the US is increasingly seen as an unreliable partner.

Sterling Falls to 2018 Low as Dollar Soars; Investors Await Data – Reuters

The pound fell to a five-month low as the dollar surged and investors prepared for data that could determine whether the Bank of England raises interest rates this year.

Emerging-Market Currencies Feel Burn from Resurgent Dollar – Financial Times (subscription)

JPMorgan’s emerging-market currencies index is now under 66, its lowest point in a year.

Sell Italy, Buy the Euro – Financial Times (subscription)

The takes are flowing in, now that investors have started to pay attention the aspirations and policies of an Italian government of all the populists.

Big Banks Boost Brexit Budgets – Financial Times (subscription)

Big banks are increasing their budgets for dealing with Brexit, as they stick to a March 2019 deadline to transfer parts of their businesses from London despite the 21-month transition deal struck between the UK and EU earlier this year.

The Biggest Change in FX? – Profit & Loss (subscription)

Look at the relationship dynamic and a lot has changed – especially over the past five years or more.

Forex Network New York is This Week! – Profit & Loss

Profit & Loss’ annual New York conference is set for this Thursday, May 24 at the Crowne Plaza, Times Square and features a host of sessions looking at the world of crypto as well as more traditional FX issues such as the role of currency managers and the future of electronic trading.

Regulatory News

CFTC Proposes Rule to Ease Regulatory Burden – Profit & Loss

The Commodity Futures Trading Commission (CFTC) has approved a proposed rule that it says will reduce regulatory burdens for US market participants in order to promote economic growth and job creation, by bringing certain CFTC requirements in line with other US regulators.

ISDA Eyes Contingency Plan as Libor Demise Looms – Financial Times (subscription)

Global association fears derivatives market ill-prepared for end of lending benchmark.

Cryptocurrency Firms Explore Getting Bank Licenses – Wall Street Journal (subscription)

Coinbase and another cryptocurrency firm talked to US regulators about the possibility of obtaining banking licenses, a move that would allow the startups to broaden the types of products they offer.

Company News 

Nex Shareholders Vote in Favour of CME Deal – Financial Times (subscription)

Shareholders of Nex Group have voted in favour to sell the UK trading and technology company to the US’s CME Group for £3.9bn.

Investment Banks Line Up Rebound in Revenues – Financial Times (subscription)

Global investment banking revenue will recover from a fall of about 15 per cent in the first five months of the year, according to the head of capital markets origination at Citigroup.

Tolat Joins TradAir – Profit & Loss

Viral Tolat has been appointed chief executive officer at TradAir, filling a role vacated last year when co-founder Illit Geller stepped down.

Crypto News

LMAX Digital Unveiled – Profit & Loss

LMAX Exchange has launched what it says is the first physical crypto currency exchange dedicated to serving only institutional clients.

Genesis Gets BitLicense Approval – Profit & Loss

Genesis Global Trading has received approval from the New York Department of Financial Services (DFS) for a BitLicense.

Financial Heavyweights Pour Scorn on Bitcoin – Financial News (subscription)

Mark Mobius, Davide Serra, Martin Wheatley and Nick Leeson strongly critical of cryptocurrency.

Move Deliberately, Fix Things: How Coinbase Is Building a Cryptocurrency Empire – The Washington Post

Since its founding by a former Airbnb engineer in 2012, Coinbase has been growing at a rate rivaling much-better-known start-ups.

Crypto’s Biggest Hacking Victim Plots a US Comeback – Bloomberg

Coincheck’s new owner plans to bring the platform to America.

Market Savvy

Indonesia to Step Up Intervention as Currency, Bonds Slide – Bloomberg

Rupiah slumps to 31-month low; bond yield at 14-month high.

Brazil to Boost Currency Swap Programme to Fight Volatility – Reuters

Brazil’s Central Bank will boost its currency swap programme to reduce local currency volatility, Finance Minister Eduardo Guardia told Reuters.

Argentine Peso Stabilizes After Central Bank Draws the Line at 25 Per Dollar – Reuters

Argentina’s peso stabilized as the central bank declined for the second day in a row to support the local currency by selling dollars, indicating its willingness to let the market find its own level under 25 to the US dollar.