Top Headlines

Pound’s Post-Inflation Rally Evaporates Fast – Financial Times (subscription)

Sterling’s knee-jerk pop higher in response to forecast-busting inflation data has proven very short-lived.

UK Companies Use Pound Strength to Hedge Forex Risk – Financial Times (subscription)

Importers gain some relief from sterling’s bounce but Brexit looms large.

Dollar Languishes Near One-Week Low After Weak US Manufacturing Activity – Reuters

The dollar traded near a one-week low versus a basket of major currencies, having come under pressure after a surprisingly soft US manufacturing report.

Euro Zone Investors Welcome Unity, Trump Turmoil Knocks Dollar – Reuters

The euro hit a six-month peak and German stocks touched a record high as signals on further European integration contrasted with political turmoil and fresh doubts about the economy in the United States.

CLS Data Shows Dip in FX Volumes – Profit & Loss

The average daily volume (ADV) submitted to CLS in April was $1.52 trillion, down 5% from the ADV of $1.6 trillion that it reported in March.

Latam Markets Rise as Commodities Track Oil Higher – Reuters

Latin American currencies and stocks closed higher as talks of extended production cuts lifted crude oil futures, triggering a rally across commodity markets.

The Australian Dollar’s Outlook Darkens – Bloomberg

Hedge funds are giving up on the Australian dollar.

Krona Rally Returns After End of Iceland’s Capital Controls – Financial Times (subscription)

Two months after Iceland removed its capital controls, hopes that the shift would ease pressure on the country’s currency appear to have been in vain.

EU-Managed Control of Euro Clearing is Not Viable – Financial Times (subscription)

Euro-denominated derivatives markets have to remain free of political influences.

More Info, But No Teeth in New Foreign Exchange Code – Pensions & Investments (subscription)

An impending code of conduct among FX market participants won’t necessarily mean better execution and trading costs for asset owners.

Buy Side Applauds Sonia’s Coronation as UK Risk-Free Rate – Risk (subscription)

Decision a ‘no brainer’ but some say rejected secured rates could prove useful.

Regulatory News

US Derivatives Regulator to Make Major Fintech Announcement Weds: CFTC – Reuters

The acting head of the US derivatives regulator will make a major announcement about financial technology, commonly called fintech, on Wednesday at the New York Stock Exchange, according to an announcement.

Former Fund Manager Nominated for CFTC Role – Profit & Loss

Brian Quintenz has been nominated to be a Commissioner at the Commodity Futures Trading Commission (CFTC), according to a White House press release.

Wallop for Australian Banks – Wall Street Journal (subscription)

Australia’s conservative government last week announced the biggest overhaul of financial regulation in a generation.

Company News

Why Have FastMatch Volumes Spiked? – Profit & Loss

There have been some raised eyebrows in the FX industry recently amongst those that have noticed FastMatch’s sudden spike in volumes.

Stevens Tapped to Head Sales at Tanridge Capital – Profit & Loss

Lee Stevens has joined Tanridge Captial in London as managing director and head of sales.

Pragma Extends Algo Offering to NDFs – Profit & Loss

Pragma Securities has expanded its algorithmic trading platform, Pragma360, to include NDF products.

Modal Patterns in Market Data Stump Morgan Stanley Quants – Risk (subscription)

New research suggests algo traders are changing the market microstructure.

Banks Reinforce Cyber Defenses After Global Attack – Reuters

Banks have tightened their security systems and increased their surveillance after the global cyber assault on individuals and organizations worldwide.

Bitcoin and the Art of Extortion – Bloomberg

Behind the rise of ransomware lies the rise of Bitcoin, the virtual currency of choice for hacker blackmailers who steal huge amounts of sensitive data.

Market Savvy 

Dollar Softer in Asia as South Korea’s Won Leads Regional Gains – Financial Times (subscription)

Major currencies continued to advance on the dollar in Asia trade, with the dollar index dropping 0.1 per cent to 98.857 after shedding a third of one per cent. 

Stellar Growth Lifts Emerging Europe FX; Stocks Rally – Reuters

The Czech crown led gains among eastern European currencies, hitting a new three-and-a-half-year high after data showing buoyant economic growth, while broader emerging stocks firmed for the seventh straight day.

C$ Strengthens to Two-and-a-Half-Week High as Oil Prices Jump – Reuters

The Canadian dollar strengthened to its highest level against its US counterpart in more than two weeks as the price of oil, one of Canada’s major exports, jumped after major producers took a step toward extending a supply-cut deal.