Top Headlines

Trump Drove Forex Trade Surges in First 100 Days: CLS Study – Reuters

A study of Trump’s first 100 days in office by currency market utility CLS shows the hourly surges in currency market volumes compared with the equivalent from the same trading day a year earlier around market-sensitive actions or comments by Trump or his aides.

BoE Committee Picks Sonia as New Sterling Benchmark in Post-Libor Reform – Financial Times (subscription)

A committee established by the Bank of England has formally backed a new reference rate for valuing sterling-based derivatives, the latest step in reforming benchmarks after the Libor scandal.

Dollar Index Edges Up, But Poised for Losing Month – Reuters

The dollar edged up in Asian trading but was on track for a losing month against a basket of currencies, while the euro shed some of its monthly gains after the European Central Bank maintained its easing bias.

Bears to the Slaughter: Pound Leaps to Seven Month High; BAML Bumps Up Forecasts – Financial Times (subscription)

The currency has made another run higher against the dollar this morning, gaining 0.26 per cent on the day so far to reach its highest level in seven months at $1.2938, further erasing the dent seen since last October’s flash crash.

For Market Chartists, Sterling Looks Good – Financial Times (subscription)

The last trading day of April will deliver a mammoth data dump for traders to absorb.

Spanish Data Help Euro Limp Higher – Reuters

Solid growth numbers from Spain prodded the euro higher in early European deals after a week trading at its highest in almost six months on the back of a perceived easing in political risks in France.

Credit Not Only Factor Changing Prime Services – Profit & Loss (subscription)

As access to credit is becoming increasingly constrained in the FX market, Noel Singh, head of e-FX business development at Sucden Financial, explains to Profit & Loss that this is not the only factor at play in the evolving prime services space.

City Veteran Spencer Warns EU Against Plot to Seize Euro-Clearing – The Telegraph

Shifting euro-clearing away from Britain and into the eurozone would be a “deeply, deeply bad event” that could cripple European firms, City veteran Michael Spencer has warned.

London Banks Set to Decide Within Weeks on Brexit Moves – Reuters

The European Central Bank said it will host a meeting of banks on May 4 at its offices in Frankfurt.

Mexican Peso, Rupiah Carry-Trade Burnished by Low Volatility – Bloomberg

Sliding volatility in global currency markets is increasing the allure of carry trades and the most appealing targets are the Mexican peso and Indonesian rupiah, according to a Bloomberg analysis.

Emerging Assets Shine in April, Rouble to Snap Four Months of Gains – Reuters

Emerging equities slipped on Friday but were set for a fourth straight month of gains and currencies too have mostly strengthened in April, with the exception of the rouble which snapped a four-month winning streak.

Central Banks Show Little Sign of Exiting – Financial Times (subscription)

Worries about geopolitical risk may sway central banks to remain supportive of markets, but such an argument looks a little thin.

Regulatory News 

An Early Test for CFTC’s Giancarlo – Wall Street Journal (subscription)

Insurers are asking for a 30-day delay before they must publicly report swap positions. 

US Bank Regulators Back Calls for UK-Style Survey – Financial Times (subscription)

New York banking regulators have thrown their weight behind efforts to import a UK-style audit of whether culture is improving in the wake of scandals in the City of London and on Wall Street.

Almost Two Thirds of Firms Not Confident About Meeting MiFID II Deadline – The Trade

A significant 64% of financial institutions have said they are unsure or not confident about meeting the January 2018 compliance deadline, according to a new survey. 

Fears of Fragmentation Over Basel Shadow Banking Rules – Risk (subscription)

Step-in risk guidelines could be taken more seriously in the EU than in the US.

Donald Trump is Undermining His Treasury Secretary – Financial Times (subscription)

By all accounts the Treasury was on a path working with other agencies to produce a set of tax reform proposals by June.

McHenry to Introduce Fintech Bill to Create US Innovation Offices – MLex FS Core (subscription)

A senior Republican lawmaker plans to introduce a bill to require financial regulators to create innovation offices that would share technology information with each other and help guide nascent firms to proper authorities.

Company News

Currency Algo Trading Climbs for Investors on Integral’s System – Bloomberg

Money managers are ramping up their use of algorithmic trading in one corner of the $5.1-trillion-a-day currency market.

CME to Add New Triangulation Products – Profit & Loss

CME Group will expand the number of FX products it offers triangulation functionality in on May 14.

Barclays Shares Fall After Surprise Drop in Trading Revenue – Bloomberg

Barclays dropped the most in almost six months after it became the latest European bank to post trading results that failed to live up to the gains American firms reported.

Deutsche Boerse Eyes EU Clearing and Asia for GrowthGlobal Investor (subscription)

Eurex results were down in the first quarter of the year, while post-trade revenue rose.

JPMorgan Chase & Co Leaves Blockchain Consortium R3 – Reuters

JPMorgan Chase & Co has left the mammoth bank blockchain consortium led by New York-based start-up R3 CEV, the latest member to depart over the course of the company’s fundraising process, R3 confirmed.

Market Savvy 

Peso Walks Back Gains, Canadian Dollar Steady Amid Nafta Uncertainty – Financial Times (subscription)

Currency markets were cooling off after confusion around the Trump administration’s position on Nafta drove heavy trade in North American currencies during the previous session.

Profit-Taking Trips up Asian Stocks, Korean Won Slips on Trump Trade Threat – Reuters

Asian stocks slipped as investors took profits after a strong week, while the Korean won weakened after US President Donald Trump said he would renegotiate or terminate a trade deal with South Korea.

Kuna Joins Firming Despite Croatian Government Crisis – Reuters

Croatia’s kuna joined a firming of Central European peers despite a split in the country’s ruling coalition, helped by seasonal factors and more risk appetite after last Sunday’s French presidential vote.