Top Headlines 

Pound Rises a Fourth Day Before May’s EU Citizen-Rights Proposals – Bloomberg

The pound rose for a fourth day versus the dollar before Prime Minister Theresa May gives more details on her plan to preserve the rights of European Union citizens living in the UK after Brexit.

Dollar Drifts as US Yields Stay Low, Rate Hike Expectations Ebb – Reuters

The dollar drifted as US Treasury yields stayed low amid fading expectations that the Federal Reserve will hike interest rates again later this year.

Speculators Raise Net Long US Dollars; Euro Longs Fall: CFTC, Reuters – Reuters

Speculators boosted net long positions on the US dollar, after slashing them the previous week to their lowest level since last August, according to calculations by Reuters and data from Commodity Futures Trading Commission.

Mexico Rate Futures Down on Central Bank Hint – Reuters

Yields paid on Mexican interest-rate future contracts fell after the central bank signaled it would not increase borrowing costs any further.

How Long Can the MXN Rally Last? – Profit & Loss (subscription)

The reasons for this sustained rally are numerous.

A Healthy Dose of Self Help – Profit & Loss (subscription)

The vital role of volunteers and how they can help shape the future of the FX industry.

High-Speed Trader to Pay $101 Million in Landmark China Case – Bloomberg

China handed down a $101 million penalty and two suspended prison sentences in its first criminal case against a high-speed trading firm.

Ethereum’s Flash Crash Shows Hazards of Trading Cryptocurrencies – Wall Street Journal (subscription)

Digital-currency exchanges don’t have circuit breakers or closing bells and they don’t reverse trades.

Regulatory News

White House Close to Naming Nominees for US SEC: Senior Official – Reuters

The White House is very close to naming its nominees for the top US securities regulator, a senior official said, which could lead the current three-member Securities and Exchange Commission to reach its full five-member complement in the near future.

Wall Street’s Trade Group Chides FINRA for Regulation by Enforcement – Think Advisor

SIFMA also criticizes FINRA for not gathering enough cost-benefit data, ‘resulting in unworkable or unnecessarily costly rules’.

Six Things to Look Out For in the FCA’s Asset Management Review – Financial Times (subscription)

UK regulator considers ‘all-in’ fee, fund governance shake-up and antitrust referral.

A 10% Leverage Ratio Does Not Justify Waiving the Volcker Rule – Risk (subscription)

Former Fed manager Christopher Laursen warns against prop trading, even for well-capitalised banks.

Congress is Basically Launching a ‘Flamethrower’ at Financial Regulations – CNBC

Commentary by Bart Chilton: Plans to roll back financial regulations are “disastrous and deeply dangerous.”

Bankers Have Less to Fear From ‘Stress Tests’ – Wall Street Journal (subscription)

Fed’s focus on capital ratios rather than qualitative part of stress tests likely to result in less failures.

US to Replace Libor – Profit & Loss

The US appears to have settled upon a reference rate to replace the current London Interbank Offered Rate (Libor).

US Allies Look to Economic Diplomat for Policy Clarity – Financial Times (subscription)

Malpass’s task is to reassure those eager to hear a single authoritative voice.

Company News

Thomson Reuters Adds 15 Pairs to Faster Data Feed – Profit & Loss

Thomson Reuters has added 15 new currency pairs to its binary multicast feed for Matching.

INTL FCStone Enhances Small Payments Business – Profit & Loss

INTL FCStone has announced that the Global Payments Division (GPD) of its London-based subsidiary has introduced Automated Clearing House (ACH) connectivity, enhancing the company’s high-volume, low-value cross-border payments offering.

Vela to Acquire OptionsCity – Profit & Loss

Trading and market data technology provider Vela Trading Technologies has entered into a definitive agreement to acquire OptionsCity Software, a provider of futures and options trading and analytics solutions.

Saxo Capital Markets Exits CFD Lobbying Group and Sides with FCA – FX Week (subscription)

UK subsidiary breaks ranks with big spread-betting firms amid dispute over proposal for tougher rules on CFD products.

Market Savvy

Asia Forex Markets Becalmed as Trading Week Gets Underway – Financial Times (subscription)

Forex market movements were muted in early Asia trade, as the dollar held largely steady against regional currencies.

C$ Weakens as Subdued Inflation Reduces Rate Hike Chances – Reuters

The Canadian dollar fell against its US counterpart after weaker-than-expected domestic inflation data reduced the chances of an interest rate hike next month from the Bank of Canada.

Romanian Leu Holds Steady Ahead of New PM Nomination – Reuters

The Romanian leu held steady, unrattled by the ousting of Prime Minister Sorin Grindeanu last week, and stocks markets in the region opened higher, led by Polish banks.