Top Headlines

Sterling Extends Slide After Carney Punctures BoE Rate Hike Bets – Reuters

Sterling fell another 0.3 percent to a two-week low after Bank of England governor Mark Carney signalled that the central bank may not rush to raise interest rates in May because economic data was “mixed”.

Euro Marks Time Before ECB Guidance Next Week; Sterling Drops – Reuters

The euro settled above the $1.23 line and is poised for its smallest week of gains in 10 months as investors marked time before a European Central Bank meeting next week where policymakers might shed some clues on removing policy stimulus.

Stable Dollar Keeps Global Markets from Blowout – Wall Street Journal (subscription)

While investors have fretted that stocks and credit are overvalued this year, in one market prices may be at their most balanced in years: currencies.

Swiss Franc Dips to Three-Year Low, More Losses Seen – Reuters

The Swiss franc fell to a three-year low of 1.20 against the euro as a revival in risk appetite encouraged investors to use it to buy higher yielding assets elsewhere, betting on loose monetary policy keeping the currency weak.

Commodity Currencies Lifted in April by Oil and Metals Rally – Financial Times (subscription)

April has been a positive month for a slate of currencies of countries with large commodity sectors thanks to a sharp rise in the price of crude oil and a runaway metals market.

BoE’s Brazier Says Now Surer of Dodging Brexit Hit to Derivatives – Reuters

The Bank of England is becoming more confident that it can avoid disruption to trillions of pounds in cross-border financial contracts after Brexit, a senior BoE official said.

Silicon Valley Is Into Bitcoin. It Wants to Keep Washington Out – Wall Street Journal (subscription)

Big Silicon Valley backers of cryptocurrencies have sought a broad exemption from federal oversight they say would slow digital coin growth, as the industry steps up lobbying to limit government oversight of the burgeoning world of cryptocurrencies.

Big Corporates Ramp Up Algo Usage – Euromoney

The most active corporate FX traders have once again ramped up their use of algos, recognizing the potential for cost savings and risk management.

Regulatory News

Fed’s Brainard Says Now Isn’t Time to Lower Capital, Liquidity Rules – Wall Street Journal (subscription)

A senior Federal Reserve official sees “signs of financial imbalances” in parts of the economy and says now isn’t the time to lower capital or liquidity rules for the largest banks.

Trump Interventions on Fed Policy Risk Unsettling Markets – Financial Times (subscription)

The Trump administration is proving more willing to comment on Federal Reserve rate moves after saying little about central bank policy in its first year, in a development that risks unsettling financial markets.

Blockchain Is ‘Going Mainstream’ Says European Commission Official – Coin Desk

An executive from the institution tasked with overseeing European regulation is offering new praise for blockchain technology.

Company News

CLS Taps DLT for Netting – Markets Media

The foreign-exchange market looks like it will beat the syndicated loan and the over-the-counter derivatives markets to having the first distributed ledger based service in production later this year.

Cboe Halves Increments for Its Bitcoin Futures – FOW (subscription)

The exchange said it may move to smaller increments in the future.

Alleged Bitcoin Fraudster Demands Cryptocurrency Trading Info from CFTC and CME – Finance Feeds

Judge says “no” to Patrick McDonnell’s request to subpoena the personal cryptocurrency trading accounts/records of a number of CFTC and CME attorneys and investigators.

Market Savvy

Abe’s Woes Threaten to Put the Yen in BOJ’s Inflation Path – Bloomberg

Yen remains Asia’s best performer despite recent weakness. 

Peso Suffers Worst Drop in 11 Months as Focus Turns to Elections – Financial Times (subscription)

The Mexican peso is taking a bath, sliding by the most in 11 months as investors shift their attention from the ongoing Nafta renegotiations to the upcoming presidential elections.

The Emerging World’s Most Unruly Currency Has Taken a Chill Pill – Bloomberg

Expected price swings in South Africa’s rand have dropped by the most among global peers this year.