Top Headlines

Pound Near Pivotal Level as Brexit Trigger Pulled – Financial Times (subscription)

Sterling rebounded from its lows and was near crucial market levels for traders as the UK formally notified Brussels of its intention to leave the EU.

Pound’s Role as Brexit Barometer Muddied as EU Divorce Starts – Financial Times (subscription)

The Trump trade, a potentially hawkish ECB and French elections complicate the backdrop.

Dollar Pulls Higher on Fed Talk, Sterling Slips on Brexit Anxiety – Reuters

The dollar pulled away from 4½ month lows against a currency basket after solid data backed expectations for more US interest rate hikes this year, while sterling was knocked by Britain triggering its exit from the European Union.

Q1 Follows Trumpflation Script for Markets, But It May Be Unravelling – Reuters

On the face of it, the first quarter of the year followed the ‘risk on’ script.

Global FX Trading Volumes Fall for Second Consecutive Survey, Says BIS – Euromoney

Global FX trading has fallen between two consecutive triennial surveys for the first time since 2001, according to the BIS, with declines in spot trading accounting for most of that decline – but measured in other ways, FX liquidity remains robust.

EU Blocks Deutsche Boerse’s $14 Billion Takeover of London Stock Exchange – Bloomberg

The formal veto means LSE probably won’t follow through on the sale of its French clearinghouse, which it had offered to sell to win over regulators, people familiar with the matter said this week.

Why the Swiss Are Crossing Their Fingers the ECB Tapers Soon – Financial Times (subscription)

The tiny but affluent Alpine country is cursed by an irrepressibly strong currency.

Malaysia’s Currency Crackdown is Hitting Speculators – Bloomberg

Malaysia is succeeding in snuffing out currency speculation – now it has to deal with the fallout.

When Is Anonymous Not Anonymous? – Profit & Loss (subscription)

It may be more often than one would think in FX, even when dealing on “anonymous venues”.

Regulatory News

Debelle Sets Timeframe for Adoption of FX Global Code – FX Week (subscription)

Market participants will have six to 12 months to adjust practices once the Code is published on May 25.

Mnuchin Asked to Review Process for Too-Big-to-Fail Label – Bloomberg

Key Senate Republicans urged the Trump administration to rethink the process for labeling firms whose failure could threaten the financial system, arguing it has led to substantial regulatory costs.

MiFID II Pain Points: Trade Reporting, Best Ex – Markets Media

Among the myriad provisions embedded in Markets in Financial Instruments Directive II, transaction reporting and best execution are among the thorniest for buy-side asset managers.

Donald Trump’s SEC Pick Deleted His Wall Street Bio. Here’s What It Said – Huffington Post

What starts with the letter “G” and ends with “oldman Sachs”?

Company News

EBS BrokerTec Restructures: Cartledge to Head FX – Profit & Loss

Tim Cartledge has been appointed global head of FX and head of product at EBS BrokerTec, amid a broader shift in the companies’ internal structure for its FX business.

Kinsella Joins CBA – Profit & Loss

Peter Kinsella has joined Commonwealth Bank of Australia (CBA) as a senior FX and rates strategist.

SEC Denies a Second Application to List Bitcoin Product – Reuters

The US Securities and Exchange Commission on Tuesday denied for the second time this month a request to bring to market a first-of-its-kind product tracking bitcoin, the digital currency.

Market Savvy

Rand and Bonds Fall Further as South Africa Worries Continue – Financial Times (subscription)

South Africa’s finance minister Pravin Gordhan it still in his position (for now), but investors are taking little comfort as the rand and government bonds continue to slide.

Asian Currencies Slip as Upbeat US Data Bolsters Dollar – Reuters

Asian currencies sagged as solid US economic data backed expectations for Federal Reserve rate hikes this year, giving a lift to US bond yields and the dollar.

C$ Hangs In with Strong US Dollar as Oil Prices Rise – Reuters

The Canadian dollar hung in with a broadly stronger US dollar, helped by rising prices for oil, a major Canadian export, as the Bank of Canada stuck to its cautious tone.