Top Headlines

Mexican Peso, Canadian Dollar Stronger After White House Retreats from Nafta Exit – Financial Times (subscription)

The Canadian dollar and Mexican peso are holding onto earlier gains made against the dollar after the White House announced that it had “agreed not to terminate Nafta at this time”. 

Dollar Stuck Around Five-Month Lows on Trump Tax Doubts – Financial Times (subscription)

Forex is in focus as traders absorb developments regarding US president Donald Trump’s fiscal and trade policies.

Seasonal Boost Helps Sterling Towards $1.30 – Reuters

Sterling rose around half a percent to seven-month highs above $1.29, helped by a broader softening of the dollar and polls showing Prime Minister Theresa May on course for a landslide in the early election she has called for June.

Euro Goes from Dicey to Darling on Bets France Vote Is Done Deal – Bloomberg

What a difference a week can make. Perceived as the riskiest currency on the planet until Sunday’s French election, the euro is suddenly everyone’s favorite.

Bank of England Releases Money Market Code of Conduct – Profit & Loss

The financial markets industry has another code of conduct to conform with after the Bank of England released its new, voluntary, UK Money Markets Code, which sets out the standards and best practice expected from participants in the deposit, repo and securities lending markets.

Would the Global Code Have Prevented FX Scandals? – Profit & Loss (subscription)

Brigid Taylor, global managing director of ACI, argues that it would have.

Deutsche Bank’s Return to Growth Delayed as Trading Trails – Bloomberg

Europe’s largest investment bank reported an 11 percent increase in revenue from trading bonds and currencies in the first quarter.

London Stock Exchange Says Demand ‘Strong’ for Its Clearing Business – Financial Times (subscription)

The London Stock Exchange Group has reported growing demand from investors around the world to use its clearing house, in spite of the unit’s uncertain future following the UK’s decision to leave the EU.

The Problem with Relationship Friction – Profit & Loss (subscription)

It would help if the see-saw connection in the FX market between provider and consumer was rebalanced a little.

Regulatory News

Federal Reserve Restructuring Part of Its Large Bank Supervision Program – Wall Street Journal (subscription)

The Federal Reserve is restructuring a panel it set up in 2010 to improve its supervision of the largest and most complex banks, according to people familiar with the initiative, in its latest effort to implement lessons learned from the financial crisis.

Republican Bid to Gut Dodd-Frank Renews the Debate About Breaking Up the Banks – Bloomberg

The roll-out of legislation this week that would rip up much of the Dodd-Frank Act marks a pivotal moment for Republicans’ efforts to overhaul post-crisis financial rules.

State Banking Regulators Sue Federal Agency to Stop Charters for Fintech Firms – Wall Street Journal (subscription)

State banking regulators sued a federal agency in an effort to prevent it from issuing specialty national banking licenses to financial-technology firms, a growing area of competition for traditional banking.

Blockchain Adoption Still in Question – Markets Media

Deutsche Bundesbank said the widespread use of blockchain in financial markets is not a certainty as the German central bank still has many questions about distributed ledger technology.

Company News

Hotspot Names New Head of FX Liquidity Analysis – Profit & Loss

Hotspot has appointed Jon Weinberg as head of FX liquidity analysis.

Fenics Adds Two to Its Americas Team – Profit & Loss

Fenics Market Data, which is owned by brokerage firm BGC, has added two new members to its Americas team, both based in New York.

ICE Says Being Asked to Shift Operations from London to Continent – Reuters

The InterContinental Exchange has been asked by several European Union countries whether it would move its clearing operations to the continent, the exchange’s chief executive Jeff Sprecher said.

Banks Get Serious About Moving Jobs to Frankfurt on Brexit – Bloomberg

International banks are getting serious about moving staff to Frankfurt after last year’s Brexit vote spurred competition among European cities to lure jobs away from London.

Risk-Wary Banks Chill Bitcoin Market – Wall Street Journal (subscription)

At least three bitcoin exchanges have said in recent weeks that they can’t process transactions in dollars, as global banks pull back from sectors they deem too risky.

Market Savvy

Surprise Extension of Swedish QE Prompts Sharpest Krona Fall Since October – Financial Times (subscription)

The Swedish krona is on track for its biggest one-day fall against the euro in six months, after the Riksbank surprised investors by announcing an extension to its bond-buying programme.

Turkish Lira Heads for 2017 High After Surprise Central Bank Move – Financial Times (subscription)

Having suffered the worst start to the year of any emerging market currency, Turkey’s long-suffering lira is heading for its strongest level of the year after the country’s central bank surprised markets with a dose of monetary tightening this month.

Nigeria Naira’s New Investors Rate Eases for Second Day – Reuters

The value of Nigeria’s latest naira exchange rate, set specifically for portfolio investors, eased for a second straight day even as the central bank stepped up dollar sales on the spot and forward markets.