Top Headlines

Banerjee Wins Unfair Dismissal Claim – Profit & Loss

Profit & Loss understands that John Bannerjee, who claimed unfair dismissal against former employer Royal Bank of Canada, has won his case.

Sterling Slides to New 2018 Low on Weak UK Inflation – Reuters

Sterling fell to a new 2018 low after weaker-than-expected UK inflation cast doubt on whether the Bank of England will raise interest rates this year.

Coming Back to Life: Dollar Surge Raises Hopes for Volatile FX – Reuters

The US dollar’s unexpected surge over the past month is encouraging currency traders to pray for a return of lucrative but long-dormant price volatility on the main foreign exchanges, although early signs on that are strangely subdued.

Euro/Swiss Franc at Two-Month Lows as Italy Concerns Weigh – Reuters

The Swiss franc and the Japanese yen rose against the dollar as a wave of caution swept currency markets a day after US President Donald Trump tempered optimism over progress made in trade talks with China.

Haven Currencies Buoyant as Geopolitical Concerns Weigh – Financial Times (subscription)

The Japanese yen and the Swiss franc moved higher amid a ratcheting up in tensions between Donald Trump and China over trade and North Korea.

CCP Stress Tests Need Improvement, Argues New Research – Risk (subscription)

The effectiveness of clearing house stress tests conducted by US and European regulators could be dramatically improved by applying better analytical techniques to existing data, says a recently published paper proposing the creation of a system-wide stress test.

How Blockchain Can Transform Currency – Forbes

Blockchain technology has been making waves in the financial technology (fintech) sector with all kinds of applications.

Regulatory News

Sweeping Overhaul of Bank Rules Clears US House – Bloomberg

Compromise measure doesn’t go as far as some Republicans want.

How Congress Rolled Back Banking Rules in a Rare Bipartisan Deal – Wall Street Journal (subscription)

Sen. Mike Crapo and former Trump adviser Gary Cohn settled on less ambitious changes to Dodd-Frank than some Republicans sought.

Company News

Barclays Has No Plans for Tie-Up with Rival Banks: Sources – Reuters

Barclays is not exploring a potential merger with other banks, two sources close to the bank told Reuters, dismissing a media report that said Barclays was considering a possible deal with rivals including Standard Chartered.

Capitolis Launches FX Novation Service – Profit & Loss

Capitolis, the technology company founded by ex-Icap (now NEX Group) executive Gil Mandelzis, ex-Thomson Reuters CEO Tom Glocer and Igor Teleshevksy, formerly of Traiana, has launched a novation service in FX.

Record Handed AUD350m Mandate – Profit & Loss

Record Currency Management has been awarded an AUD350 million mandate by Sunsuper, an Australian superannuation fund.

Mosaic Smart Data Adds Two Industry Veterans to Leadership Team – Finextra

Mosaic Smart Data, the FICC data analytics company, has added two finance and technology experts to its executive team as it continues to scale to service its growing customer base.

Crypto News

Bank of England Publishes Working Paper Exploring State-Backed Crypto – Finance Magnates

The Bank of England has published a staff working paper examining the risks associated with the creation of central bank digital currencies, which the paper refers to as CBDCs.

Bitcoin Could Be a Problem for US Security Clearances – Bloomberg

Pentagon must decide whether to flag cryptocurrencies as risky.

Crypto Exchanges Must Up Their AML Game – Markets Media

The move to regulate cryptocurrency exchanges is gathering steam as the EU will require the operators of such venues to perform the same level of client due diligence as banks do.

Chinese Crypto Research Puts Ethereum in First Place – FX Week (subscription)

Ethereum ranked number one in public blockchains while bitcoin is ranked only 13th.

Market Savvy

Turkish Lira Hits Record Low, Down 20 Percent Against Dollar This Year – Reuters

The Turkish lira tumbled more than five percent before recovering some ground, the latest drop in a sell-off that reflects growing investor alarm over the direction of monetary policy under President Tayyip Erdogan.

Pakistan Turns to China to Avoid Foreign Currency Crisis – Financial Times (subscription)

Pakistan has again turned to China for help in avoiding a foreign currency crisis, deepening the two countries’ economic ties by borrowing $1bn from Chinese banks in April, Pakistan’s central bank governor has revealed.