Top Headlines

Dollar at Two-Month Highs vs Yen on Policy Divergence – Reuters

The dollar climbed to a two-month high against the Japanese yen as robust jobs data propped up US Treasury yields, although investors were wary of adding big positions before Federal Reserve chief Janet Yellen’s testimony this week.

Yen Weakens Past ¥114 Mark in Asia Trading – Financial Times (subscription)

The dollar was broadly stable in Asia trading, though changes were visible beneath the surface as the yen weakened further.

Sterling Steadies After Worst Week in Four – Reuters

Sterling steadied after a batch of very poor monthly output readings drove it to its worst week in a month, casting doubt on the Bank of England’s surprise warnings that it is on the verge of raising borrowing costs.

Top Euro Forecaster Goes Against Consensus to Stay Bullish – Bloomberg

The euro’s surge against the dollar this year still has legs, according to the currency’s most accurate forecaster.

Trump Stumps South Korean Markets More Than Any Missile Tests – Reuters

Since Trump’s election in November, price reactions to North Korean long-range missile tests in credit and currency derivatives, typically used by traders to hedge geopolitical risk, have been distinctly sharper.

Forget Korea and China Risks, Asia Currencies Edge Peers in Poll – Bloomberg

Never mind the tensions with North Korea and China’s deleveraging drive, Asian currencies have emerged victorious in a Bloomberg survey of emerging market watchers.

Getting Granular on FX Execution Analysis – Profit & Loss (subscription)

Firms are increasingly demanding more sophisticated tools around FX execution analysis, explains Petra Wikström, global head of execution and alpha solutions at BNP Paribas.

City Chiefs Concede UK Can Lose Clearing Oversight in Brexit – Bloomberg

UK banking executives are starting to concede that shifting regulatory oversight of euro clearing – a key battleground for the financial-services industry – to the European Union after Brexit is the only way they’ll keep the bulk of a $2.7 trillion a day industry in London.

Herd Instinct and Short-Termism – Profit & Loss (subscription)

This is an interesting time for two figures to leave banking to start up hedge funds.

Regulatory News

EU Financial-Services Chief Warns on Dodd-Frank Review and Deregulation – Wall Street Journal (subscription)

Global financial stability will be endangered if President Donald Trump abandons regulatory agreements made after the collapse of Lehman Brothers, the European Union’s financial-services chief told The Wall Street Journal.

Volcker Says Trump Changes to Volcker Rule Won’t Erode Principle – Bloomberg

Paul Volcker said he isn’t worried that the Trump administration will undermine the financial rule that bears his name.

Deadline Looming for Firms to Give Brexit Strategies to Bank – The Guardian

Hundreds of banks, insurers, fund managers and other major City firms have until Friday 14 July to tell the Bank of England how they intend to cope with a hard Brexit.

Regulator Warns Banks on Use of New Technologies – Wall Street Journal (subscription)

Banks should be cautious about taking on new technologies for financial products, a national bank regulator said Friday in a semi-annual report on risks facing the industry.

Company News

Thomson Reuters FX Volumes Up in June – Profit & Loss

Thomson Reuters has reported good month-on-month growth in FX average daily volume (ADV), however year-on-year activity is lower.

CLS, NEX Expand Aggregation Service – Profit & Loss

CLS Group (CLS) and NEX (Nex) Optimisation have together announced the expansion of CLS Aggregation Services to support the aggregation of non-CLS currencies.

BextX Unveils Pre-Trade Functionality – Profit & Loss

Eight months after releasing its first post-trade execution analysis product, BestX has rolled out its much-anticipated pre-trade execution analysis functionality.

Bigger Not Necessarily Better: AIMA Survey Dispels – Profit & Loss

A new survey from the Alternative Investment Management Association (AIMA) and boutique prime broker GPP helps dispel the notion that bigger is always better regarding hedge funds’ asset under management (AUM).

Pragma Research: Banks Continue to Offer Top of the Line FX Liquidity – Finance Magnates

Pragma’s latest research shows that major banks remain the best liquidity providers, leading ECNs.

Market Savvy

Turkish Lira Shrugs Off Weak Industrial Numbers – Financial Times (subscription)

Turkey’s lira is rallying for the first time in four days, shrugging off a weaker than expected performance in the country’s industrial sector.

Pakistani Rupee Rebounds After Shock Plunge – Financial Times (subscription)

Pakistani’s rupee has recovered some poise after a shock plunge against the dollar that has escalated tensions between the government and central bank.

CEE Currencies, Stocks Rise on US Data, Serbian Rates Seen on Hold – Reuters

Central European currencies and stocks firmed as investors bought risky assets after strong US employment figures for June helped Wall Street stocks to rise at the end of last week.