Top Headlines

Dollar Climbs as North Korean Tensions Ease – Reuters

Gains against the yen and the Swiss franc led a broad rise in the US dollar, helped by an easing of the tensions around North Korea that drove capital towards Switzerland and Japan last week.

Sterling at Five-Week Low Under $1.29 After Inflation Data Miss – Financial Times (subscription)

Weaker-than-expected inflation data has sent sterling to a five-week low, as investors re-draw their expectations on the timing of the next UK rate rise.

Time to Take ‘Some Profits’ on Ebullient Euro: UBS Wealth – Financial Times (subscription)

The euro has had a good run. Is it running out of luck? UBS Wealth Management thinks so, explaining it is time to cash in on gains given “limited upside” in the next six months.

Yen Weakens Past ¥110 Per Dollar, Gold Retreats as North Korea Tensions Subside – Financial Times (subscription)

Investors were walking back their recent dive into havens as worries over a potential US-North Korea conflict appeared to ease, prompting Japan’s yen to soften to more than ¥110 per dollar and gold retreated further from recent highs.

Yuan’s Strength Against the Dollar Fails to Snuff Out Depreciation Expectations – Reuters

China has given those who bet against the yuan a bloody nose this year thanks to policy moves and intervention by the authorities. And yet, many traders and investors are still tipping the Chinese currency to decline against the US dollar in the next year.

Hong Kong’s Going to Have to Lift its Game to Nudge Rates Higher – Bloomberg

Hong Kong’s attempt to force bank interest rates higher – seen by some as a bid to arrest losses in the local currency – has been given a big fat zero by the markets.

Euronext Closes FastMatch Deal – Profit & Loss

Euronext has completed the acquisition of 90% of FastMatch, after having received regulatory and anti-trust approvals.

Building an FX Program for Today’s Market – Tabb Forum

Here are seven questions to help you get started building a coordinated and measurable FX program.

Regulatory News 

Derivatives Trading Obligation Needs Harmonization – Markets Media

The European Union should harmonize differences in scope and timing of implementation of the obligation to trade derivatives on a venue or there will be an unequal playing field between jurisdictions and firms. 

Dudley Calls Cohn ‘Reasonable Candidate’ for Fed Chair Position – Bloomberg

Federal Reserve Bank of New York President William Dudley took the unusual step of weighing in on who might be the next head of the US central bank.

Small Banks’ Fintech Efforts Held Back by Volcker Rule – American Banker

The Dodd-Frank Act’s Volcker Rule was meant to protect the financial system by prohibiting banks from engaging in certain risky activities. But it may also be stopping community banks from being able to reap significant benefits from the fintech revolution.

We’re Still Not Ready for the Next Banking Crisis – Bloomberg

One chart says everything about how well the financial system will cope.

Company News

LCH Introduces SwapClear Client Account – Profit & Loss

LCH has introduced a new type of client account within its SwapClear service.

Mesirow Hires Hoffman as CEO – Profit & Loss

Mesirow Financial, has appointed Joseph Hoffman as CEO of its currency management business.

Moffat to Head LMAX in Asia Pacific – Profit & Loss

LMAX Exchange has named Scott Moffat as managing director for Asia Pacific, based in Singapore.

CME Reduces Minimum Amounts on VQOs – Profit & Loss

CME Group has reduced the minimum order quantity for Volatility-Quoted Options (VQO) ahead of the scheduled launch on August 20.

SGX Touts 74% YoY FX Futures Growth – Profit & Loss

SGX has released data showing that the total volume of its FX futures contracts grew 74% year-on-year to 759,983 contracts in July, and open interest in these contracts was up 15% YoY to 60,105 contracts as at the end of July. 

Ethereum Group Gains Momentum – Markets Media

A month after Enterprise Ethereum Alliance officials first announced the formation of its technical steering committee and initial working groups, contributions from the open-source community are starting to ramp up.

Market Savvy

Krona Hits Five-Month High After Inflation Beat – Financial Times (subscription)

The Swedish krona hit its strongest level since March, after the country’s latest inflation data came in ahead of all but the most hawkish estimates.

Heightened Geopolitical Sensitivity Drives Zloty Moves – Financial Times (subscription)

The latest bout of geopolitical uncertainty rocking markets in recent days has had a particularly severe impact on the Polish zloty, highlighting how it has become Europe’s most susceptible currency to geopolitics-led swings since the right-wing Law and Justice party (PiS) came to power.

CEE Markets: Currencies, Stocks Rise in Hope of Strong GDP Figures – Reuters

Central European currencies and stocks firmed, reflecting expectations that second-quarter economic output data due in the region’s main states on Wednesday will show continuing healthy growth.