Top Headlines

Dollar Eases Ahead of Powell’s Highly-Anticipated Testimony – Reuters

The dollar eased as investors awaited a slew of economic data this week and Federal Reserve Chairman Jerome Powell’s testimony, which could determine whether the US currency’s recovery from a three-year low has more room to run.

Sterling Edges Higher But Outlook Cloudy – Reuters

Sterling edged higher on the back of a struggling dollar, though investors remained wary of chasing the British currency higher before a testimony from new Federal Reserve chief Jerome Powell later in the session.

Pound’s Recovery Shows Resilience Over Brexit Outcome – Financial Times (subscription)

Sterling has been best performing G10 currency over past six months.

ECB Chief Wants to Push Through Euro-Clearing Rules Ahead of Brexit – Financial News (subscription)

The head of the European Central Bank has urged EU lawmakers to push through legislation on euro clearing, which has been a contentious issue since the Brexit vote, “well in advance” of the UK’s exit.

Legal Limbo Looms for Banks in Brexit Transition Tumult – Reuters

Even if Britain agrees a Brexit transition deal with the European Union next month, bankers and regulators say it is unlikely to provide the legal certainty they are seeking.

US Clearing Banks Still Push for Leverage Ratio IM Offset – Risk (subscription)

A potential cut in the US supplementary leverage ratio being considered by the US Federal Reserve is not sufficient to restore the economics of client clearing and avoid more firms exiting the business, futures commission merchants (FCMs) are warning.

IMF’s Lagarde Warns of Volatile Flows from Policy Normalization – Bloomberg

Central banks need to stay vigilant as uncertainty remains over the impact of the normalization of monetary policies in advanced economies, International Monetary Fund Managing director Christine Lagarde said.

World’s Largest Asset Manager Says Get Ready to ‘Stomach Complete Losses’ In Cryptocurrencies – CNBC

Investors should only consider cryptocurrencies such as bitcoin if they are prepared to lose everything, BlackRock Investment Institute said in its weekly report.

Self-Proclaimed Bitcoin Inventor Accused of Swindling $5 Billion of Cryptocurrency – Bloomberg

Craig Wright, the self-proclaimed inventor of bitcoin, is accused of swindling more than $5 billion worth of the cryptocurrency and other assets from the estate of a computer-security expert.

Regulatory News

EU Says Stands Ready to Regulate Crypto-Currencies – Reuters

The European Union stands ready to regulate crypto-currencies if risks from the sector are not tackled at the global level, the bloc’s financial services chief said.

Trump’s SEC Makes Slow Progress on Trimming Rules – Wall Street Journal (subscription)

Jay Clayton, President Donald Trump’s pick to lead the US Securities and Exchange Commission, can point to a series of small, targeted actions aimed at easing the regulatory burden for companies nearly 10 months into his tenure.

Watchdog Warns of Gaps in US Financial Regulation – Financial Times (subscription)

The US government’s focus on the resilience of banks and other financial groups rather than the markets in which they operate risks “significant gaps” in supervision that could cause another calamity, a financial watchdog has warned.

CFTC’s UK Deal Keeps Focus on Fintech – Wall Street Journal (subscription)

The CFTC, for legal reasons, can’t launch a full-fledged regulatory “sandbox” like the FCA’s.

Japan Regulation Shakeup Is Seen as a Game Changer for Banks – Bloomberg

Japan’s financial supervisor is laying the groundwork for a regulatory overhaul that could lead to a shakeup in the nation’s $10 trillion banking industry.

Company News

Jeremy Corbyn’s Brexit Speech Won’t Do Anything to Secure Banking Jobs – eFinancial Careers

In a nearly 5,000 word speech, his only reference to banking was in the context of market failure.

Circle Buys Crypto-Asset Exchange – Profit & Loss

Mobile payments and cryptocurrency startup, Circle, has acquired the crypto-asset exchange Poloniex.

Bitcoin Futures: Looking at the Nuts and Bolts – Profit & Loss (subscription)

A fireside chat with Tim McCourt, managing director and global head, equity products and alternative investments at CME Group, about the exchange’s bitcoin futures contracts.

Profit & Loss Talk Series with Raj Sitlani – Profit & Loss (subscription)

Raj Sitlani, co-founder of IS Prime and managing director of ISAM Capital Markets, talks about the challenges associated with expanding into Asian FX markets and why technology remains the key differentiator for prime-of-primes.

Market Savvy

Yen Tipped to Test 105 Per Dollar as Seasonal Flows Kick in – Bloomberg

The yen looks set to rise toward 105 against the dollar again, with the Bank of Tokyo-Mitsubishi and Daiwa Securities predicting a boost from fiscal year-end repatriation flows.

Bitcoin Jumps Almost $600 in 40 Minutes – Financial Times (subscription)

A sudden jolt higher in the price of bitcoin caught cryptocurrencies traders off guard, highlighting the lack of liquidity in the market.