Top Headlines

Trump Administration Weighs Adding Currency Rules to Nafta – Wall Street Journal (subscription)

The Trump administration has told senators it is considering adding rules barring currency manipulation to the North American Free Trade Agreement, according to congressional aides, a departure from past US policy that could set a precedent for other trade deals.

Dollar Nurses Losses as Washington Rocked by New Probe Into Trump Campaign – Reuters

The dollar wallowed near six-month lows against a basket of major currencies as the US political crisis appeared to deepen, threatening to delay efforts by President Donald Trump to implement his economic stimulus plans.

Sterling Subdued Ahead of UK Retail Sales Data – Reuters

Sterling edged lower against the dollar as investors awaited a further reading on consumer spending in Britain, now seen slowing after it propped up the UK economy in the months following the Brexit vote.

How the Pound Performed in Past UK Elections – Financial Times (subscription)

Sterling rises when the Tories rise in opinion polls.

Mexico Central Bank Seen Holding Key Rate, Pointing to Future Hikes – Reuters

Mexico’s central bank is expected to keep its benchmark interest rate unchanged after five consecutive hikes, on the back of the peso’s recent rally and in spite of above-target inflation.

Brent’s Bounce Helps Loonie Climb Off Lows – Financial Times (subscription)

Canadian dollar’s trough came as the Trump administration slapped tariffs on lumber.

Regulators Ask Deutsche Bank for Brexit Trading Rethink: Source – Reuters

European supervisors want Deutsche Bank to prepare a fallback plan to lay out how it could shift the clearing of trades from London, one person with direct knowledge of the matter said, as the region seeks to guard itself against a possible hard Brexit.

The Last Look Mess – Profit & Loss (subscription)

While last look remains an emotive subject, discussions have moved on to its potential cost. 

Why Has Bitcoin’s Value Soared? – Financial Times (subscription)

Growing acceptance of crypto currency, despite its speculative reputation.

Global Code Launch, FinTech, Liquidity Under the Lens – Profit & Loss

Next week, more than 200 FX professionals will gather at Forex Network New York to hear industry leaders debate the most pressing issues in the market today.

Regulatory News

CFTC Announces New FinTech Initiative – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has launched LabCFTC, a new initiative aimed at promoting responsible FinTech innovation to improve the quality, resiliency, and competitiveness of the markets the CFTC oversees.

Exclusive – EU Looks to Build Alternative to London for Capital Market: Document – Reuters

Brexit has forced the European Union to rethink its flagship capital markets union (CMU) project and urgently look for ways to create an alternative financial market to London, according to a draft EU document seen by Reuters.

Mnuchin’s Senate Testimony Eclipsed by Trump’s Comey Saga – Bloomberg

Steven Mnuchin will be overshadowed during his first congressional testimony as Treasury secretary by a deepening political crisis at the White House that threatens his aspirations for tax and regulatory overhauls.

Financial Transaction Tax Could Go Into European Budget: Schelling – Reuters

A European Union-wide financial transaction tax could be accounted for in the European budget and be offset against other national contributions, Austrian Finance Minister Hans Joerg Schelling, who spearheads work on such a tax, said.

BaFin Toughens Rules on CFDs – FX Week (subscription)

New directive for August 10 requires implementation of negative balance protection for CFD products in Germany.

European Lawmakers Take a Pro-Bitcoin and Pro-Blockchain Stance – Finance Magnates

“If a bank does not think blockchain is in competition with fiat currency then they likely do not understand it.”

Company News

RGC Taps Ager for New FX Division – Profit & Loss

Rosenthal Collins Group (RGC) has appointed Brian Ager as president of the firm’s new institutional foreign exchange division in New York.

EBS to Enforce Ultra Participation Criteria from Mid-June – Waters Technology (subscription)

Foreign exchange broker platform EBS BrokerTec is set to enforce the participation requirements for its EBS Live Ultra datafeed from mid-June.

Deutsche Börse Revamps Content Lab to Harness Internal Datasets, Plans FX Feed – Waters Technology (subscription)

The unit’s new remit is to leverage content already being captured and stored internally by the exchange.

GKFX Goes Live with TradAir Platform – Profit & Loss

TradAir has announced that GKFX, a broker regulated by the UK’s Financial Conduct Authority (FCA), has gone live with its margin/credit FX-CFD platform.

Market Savvy

‘A Clear Crescendo’: Emerging-Market Currencies Take a Hit; Rand Down 2.4% – Financial Times (subscription)

Leading the way (down) among the more heavily traded EM currencies, the South African rand is down by 2.4 per cent against the buck, leaving the dollar at ZAR13.51. 

Australia’s Jobs Growth Tops Forecasts in April – Financial Times (subscription)

The Australian dollar jumped back into positive territory after data showed employment rose more than expected in April and the jobless rate fell to its equal-lowest level this year.

CEE Currencies Fall on US Politics, Dovish Central Banks – Reuters

Central European currencies fell sharply from recent highs as growing worries over Donald Trump’s US presidency led investors to cut risk.