Top Headlines

NEX Group in CME’s Sights – Profit & Loss

NEX Group has issued a statement confirming that it has received a preliminary approach from CME Group to acquire the company.

Dollar Retreats Against Yen as US Political Worries Rattle Markets – Reuters

The dollar fell to its lowest level against the Japanese yen since early March on reports of more turmoil in the Trump administration, while other markets were quiet as investors remained cautious.

‘King Dollar’ Kudlow Is Fighting a Tide of Bearish Greenback Wagers – Bloomberg

The Trump administration might have gained a strong-dollar advocate in Larry Kudlow, but the incoming White House economic adviser faces an uphill battle in stopping the greenback’s slide.

Sterling Dips as Brexit Transition Deal Concerns Grow – Reuters

Sterling edged lower as the dollar gained ground ahead of next week’s expected rise in US interest rates, while scepticism about the prospect of a smooth Brexit transition deal also weighed on sentiment.

Popular Nafta Arbitrage Trade Sours as Trump Aims Fury North – Bloomberg

Buy loonie, sell Mexican peso wager has gone from stud to dud.

Why a Stronger Yen Has Room to Appreciate Further – Financial Times (subscription)

The Japanese yen has already appreciated six per cent versus the US dollar in 2018 and some think this trade has a lot more room to run.

US Judge Dismisses Currency-Rigging Claims Against Big Banks – Reuters

A US judge dismissed a lawsuit against 16 big banks by retail foreign currency investors who claimed they were indirectly harmed by a conspiracy to rig prices.

Martin Wheatley: City Suffering ‘Irreversible Damage’ from Brexit – Financial News (subscription)

Martin Wheatley, the former head of the UK’s powerful financial regulator, believes the City will suffer “irreversible damage” from the country’s decision to leave the EU and that London could lose its status as Europe’s top financial centre.

Ex-Deutsche Bank Trader Pleads Guilty to Rigging Euribor – Financial News (subscription)

A former Deutsche Bank trader accused of rigging a key bank lending benchmark has pleaded guilty to conspiracy to defraud in a London court.

Wall Street Banks Are at ‘An Inflection Point’ – And It’s Bad News for Traders – Business Insider

According to a report from Morgan Stanley and Oliver Wyman on wholesale banks and asset managers, it’s now time for banks to shift their focus towards corporate business, versus the institutional investor clients they’ve been focused on.

Regulatory News

House Lawmakers Vow Not to ‘Rubber Stamp’ Senate Bank Bill – Wall Street Journal (subscription)

House Republicans pushed to leave their mark on a bipartisan overhaul of the banking sector approved this week by the Senate, a move that could slow momentum for the legislation in Congress.

Call for US Treasury to Fill Cryptocurrency ‘Regulatory Vacuum’ – Financial Times (subscription)

CFTC’s Rostin Behnam says focus needed on distributed ledgers and initial coin offerings.

Regulatory Plans to Clamp Down on Retail FX Leverage Divide Opinion – Euromoney

ESMA and IOSCO are looking at how best to tackle the issue of excessive leverage in the retail FX market – reactions among retail brokers are mixed.

Company News

Kamrath Resigns from Jefferies, Bechtel Takes Over – FX Week (subscription)

Ray Kamrath resigns as global head of FX at Jefferies and Brad Bechtel steps into the role.

Coinfloor Launches Cryptocurrency Futures Exchange – Profit & Loss

Coinfloor, a group of cryptocurrency exchanges targeting institutional and sophisticated retail traders, has launched CoinfloorEX – a cryptocurrency futures exchange.

Three Bitcoin Exchanges Raided – Chosun

The Seoul Southern District Prosecutors’ Office searched the exchanges from Monday to Wednesday, a spokesman said.

Market Savvy

Swiss National Bank Fears Trade War Could Fuel Franc Demand – Reuters

The Swiss National Bank fears that a rise in global trade tensions and protectionism could trigger renewed demand for the Swiss franc, even as the central bank keeps its ultra-expansive monetary policy in place.

Norway’s Central Bank Hints at a Summer Rate Rise – Financial Times (subscription)

Bulls reckon Norges Bank is in the mood for raising rates, whatever the weather. As such, the currency is “massively undervalued”, notes UniCredit.

Bitcoin’s ‘Death Cross’ Looms as Strategist Eyes $2,800 Level – Bloomberg

Bitcoin’s 50-day moving average has dropped to the closest proximity to its 200-day moving average in nine months.