Top Headlines

HSBC Faces Fresh Suit Alleging Forex Manipulation – Financial Times (subscription)
HSBC is facing a fresh legal battle over allegations that its traders manipulated foreign exchange markets for their own profit at the expense of their clients, with the allegations centring on trades from more than a decade ago.

Pound’s Message to Investors: Wake Up and Smell the Election – Wall Street Journal (subscription)
Investors are scrambling to protect themselves against big moves in the British pound ahead of this week’s election, the outcome of which many had taken for granted.

FX’s Controversial ‘Last Look’ Goes Under the Microscope – Financial News (subscription)
One of the most controversial practices in the $5.1tn-a-day currency markets is in for further scrutiny, highlighting the challenge of restoring trust in an industry scarred by scandal.

Draghi May Look Backward to Chart ECB Communication on Future – Bloomberg
Mario Draghi may look to the European Central Bank’s past communication to find the right balance for the future.

Some Inconvenient Facts for the Fed – Wall Street Journal (subscription)
The central bank is poised to raise rates but a weaker economy might put more action on hold.

Investor Doubts About Trump Agenda Weigh on Dollar – Financial Times (subscription)
US currency hits new post-election low as CEOs warn on reforms getting bogged down.

Foreign Investors to Pour Nearly $1 Trillion Into Emerging Markets in 2017: IIF – Reuters
Non-resident capital inflows to emerging markets should reach $970 billion this year, a 35 percent increase from 2016, the Institute of International Finance said in a report released on Tuesday.

Bitcoin Surges 8% to Record Near $3,000 Before Giving Up Some Gains – CNBC
Bitcoin surged more than 8 percent at one point on Tuesday to a record, breaking above $2,900.

Gulf Dispute Sparks Worries Over Qatari Currency – Financial Times (subscription)
Qatar’s currency has come under pressure from investors amid rising tensions in the Middle East.

China’s Economic Data: An Accurate Reflection, or Just Smoke and Mirrors? –
Since China became more open in 1978, its gross domestic product (GDP) is reported to have risen from 2.3 percent of the world’s economy to nearly 18 percent. Because of this rising share, the Chinese economy influences a myriad of economic outcomes, including, for example, global prices of oil and food, as well as U.S. imports and exports. But are these data on China’s economy accurate?

Beijing’s Meddling Means the Yuan May Never be a Truly Global Currency – South China Morning Post
The Chinese government’s resistance to a fully market-determined exchange rate limits the willingness of international markets to adopt the yuan.

Regulatory News

ISDA: Time Ticking on Margin Deadlines – Profit & Loss
The new variation margin deadlines still pose a substantial challenge to financial services firms, despite the “substantial progress” that many of these firms have made in their compliance efforts, according to Scott O’Malia, CEO of the International Swaps and Derivatives Association.

Financial Services Committee To Hold Virtual Currency Hearing –
On Thursday, the Terrorism and Illicit Finance Subcommittee will hold a hearing on virtual currency as it relates to American national security.

Marvin Goodfriend Would be Good for the Fed – Financial Times (subscription)
As a former Fed official, a much cited academic author on monetary economics, and an impeccable conservative, Marvin Goodfriend could be a candidate to replace Janet Yellen next year.

Company News

Hedin, Lundberg Named Co-Heads of Trading at SEB – Profit & Loss
SEB Merchant Bank is merging its traditional trading and e-commerce businesses under newly appointed co-heads Svante Hedin and Jonas Lundberg.

The New Gold Rush Is All About Vaults – Bloomberg
From safety-deposit boxes in leafy west London to high-security facilities housing gold and silver in Frankfurt, companies that store valuables are expanding to meet demand.

Brevan Howard’s Main Hedge Fund Loses Money for Third Month – Bloomberg
Brevan Howard Asset Management LLP’s flagship hedge fund lost 0.7 percent in May, its third straight monthly decline.

London’s Big Bang Banking Hub Pivots for Post-Brexit Reinvention – Bloomberg
For 30 years, an army of UBS Group AG traders packed the football-field-sized floors of a building in the City of London’s largest office project. Now teams of laborers in high-visibility jackets are busily transforming the property for a different type of worker.

Market Savvy

Dollar Stuck Near Six-Week Low vs. Yen Ahead of Thursday’s Risk Events – Reuters
The dollar wallowed near a six-week low against the safe-haven yen on Wednesday, with traders cautious ahead of Britain’s general election, a European Central Bank policy decision and testimony by former FBI Director James Comey.

The Dollar’s ‘Stupidly Strong’ Link With Bonds Means Deeper Losses – Bloomberg
The dollar and Treasury yields are sinking practically in unison, in a strengthening relationship that’s reverberating across financial markets.

Top Forecaster Sees Brazil Currency Uproar Tamed by Temer Legacy – Bloomberg
Never mind the chaos. Brazil’s real may end the year where it began.

U.S. 10-Year Yield Falls to New Low for 2017 – Wall Street Journal (subscription)
The yield on the benchmark 10-year U.S. government note on Tuesday closed at the lowest level in 2017, extending its big slide since reaching this year’s peak in March.

Is the World Overdoing Low Interest Rates? – Bloomberg
Some economists say too-low rates can discourage banks from making loans.

Industry Events

FIA International Derivatives Expo (IDX 2017), 5-7 June, London 
MFA Forum 2017, 20 June, Chicago
Profit & Loss Scandinavia 2017, 14 September, Stockholm
Forex Network Chicago 2017, 27-28 September, Chicago
FIA Futures & Options Expo 2017, 17-19 October, Chicago