Oil Soars, Dollar Roars as Trump Dumps Iran Nuclear Deal

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Top Headlines

Oil Soars, Dollar Roars as Trump Dumps Iran Nuclear Deal – Reuters
Crude oil prices jumped back to 3-1/2-year highs on Wednesday after President Donald Trump pulled the United States out of an international nuclear deal with Iran, while the dollar continued its tireless ascent and world stocks held steady.

Trump Misses the Point on Currency ‘Manipulation’ – Nikkei Asian Review
“Russia and China are playing the currency devaluation game … Not acceptable!” President Donald Trump’s recent tweet encapsulates his fixation with bilateral trade balances and his economic ignorance. Bilateral trade deficits are anathema to him because he thinks they are caused by unfair manipulation of exchange rates to boost exports.

Bitcoin Sees Wall Street Warm to Trading Virtual Currency – CNBC
Some of the biggest names on Wall Street are warming up to Bitcoin, a virtual currency that for nearly a decade has been consigned to the unregulated fringes of the financial world.

IMF Not Very Concerned About FX Pressure in Indonesia, Philippines – Reuters
The International Monetary Fund is not too worried about recent selling pressure on assets in Indonesia and the Philippines as it was not triggered by domestic factors and Asia has stronger buffers than in the past, a Fund official said on Wednesday.

‘World of Warcraft’ Currency Is Now Worth 7 Times as Much as Venezuela’s Cash – Yahoo Finance
Venezuela’s real world currency–the bolivar–long ago fell below the value of the fake gold in Azeroth, the mythical setting of World of Warcraft (WoW). What’s remarkable is how much more valuable that virtual currency has become.

Regulatory News

Ryan: GOP Has Deal on Bill Easing Dodd-Frank – The Hill
Speaker Paul Ryan (R-Wis.) said Tuesday that the House and Senate have struck a deal to pass the upper chamber’s bipartisan bill to roll back strict financial rules enacted by former President Obama.

Algo Traders Warn U.K. Over MiFID II Rules – Bloomberg
Financial firms are pressing the U.K. to stick as closely as possible to the European Union’s MiFID II restrictions on algorithmic trading, warning the Bank of England against imposing even tougher rules on the industry ahead of Brexit.

Security or Currency? Jury to Decide Next Year in ICO Fraud Case – Coindesk
A jury will decide whether tokens issued through two allegedly fraudulent initial coin offerings (ICOs) count as securities, a U.S. district court judge said Tuesday.

Judge Issues $2.2m Fine for FX Fraud Scheme – Profit & Loss
On Tuesday, a US judge issued a $2.2 million fine against Alcibiades Cifuentes and Jennifer Cifuentes for running a fraudulent FX trading scam.

Company News

Thomson Reuters FX Volumes Dip in April – Profit & Loss
The total average daily volume (ADV) of FX trading across Thomson Reuters’ platforms in April 2018 totaled $441 billion, down 4.3% from the $461 billion ADV it recorded the previous month.

360T Makes Three Senior Hires – Profit & Loss

360T has appointed Randy Rupan as head of spot for the Americas, Robin Nicholas as swap product manager and Paul Lonsdale as liquidity manager for the Americas.

Compass Group Profit Falls, Hit by FX Effects – MarketWatch
Compass Group said Wednesday that pretax profit fell in the first half of financial 2018 due to foreign exchange effects, and it reaffirmed its full-year guidance.

Emirates Profit More Than Doubles on Currency Boost, Fewer Staff – Reuters
Emirates airline on Wednesday reported a sharp increase in profits for 2017 as a favourable dollar exchange rate and lower staff numbers helped the long-haul carrier to rebound from a profit fall in its previous financial year, its first annual profit decline in five years.

Market Savvy

Widening Cracks in Euro Sends Dollar to 2018 Highs – Reuters
The dollar surged to a 2018 high against its rivals on Tuesday as a rout of the euro prompted traders to buy the greenback despite some concerns its rally may have been too quick.

Asian Stocks Head Lower as Traders Mull Iran News: Markets Wrap – Bloomberg
Asian stocks headed lower in early trading Wednesday as investors assessed the implications of President Donald Trump’s decision to scrap a nuclear deal with Iran. The dollar traded flat after recent gains, and Treasury yields consolidated.

Dollar Strength Reveals Merits of Currency Hedged ETFs – ETF Trends
As the U.S. dollar pushes higher, investors who are looking into international market and related stock exchange traded funds should consider hedging foreign exchange currency risks.

Erdogan Summons Officials Over Lira’s Slides to Record Low – Bloomberg
Turkish President Recep Tayyip Erdogan was said to summon economic decision makers to his palace to discuss the lira, driving a rebound in the currency from a record low.

The Pound Faces a Friendless Summer – Bloomberg
The Bank of England will almost certainly keep rates on hold at Thursday’s Monetary Policy Committee meeting, and that means the pound is vulnerable to a further sell-off. There’s not much the BOE can do about it.