Top Headlines

Dollar Gains as Fed Sticks to Guns on Policy Tightening – Reuters

The dollar inched higher, with expectations of another Federal Reserve rate hike this year kept alive by a policy meeting that also pointed the way to a trimming of the huge emergency funds pumped into the economy since 2009.

Politics, Spending Worries Prod Sterling Below $1.27 – Reuters

Sterling fell half a percent against a broadly stronger dollar in morning trade in London, with weak retail sales numbers and concerns about efforts to form a new minority government driving it back below $1.27.

ECB and Esma Would Call Shots on Euro Clearing – Risk (subscription)

Proposals give central bank and regulator the power to bar biggest third-country CCPs.

Last Look and Peer Pressure – Profit & Loss (subscription)

The market’s renewal needs to be accompanied by real action – because there are still practices in the FX world that sit uncomfortably with some.

Swiss National Bank Keeps Ultra-Loose Policy in Place – Reuters

The Swiss National Bank maintained its ultra-loose monetary policy despite an easing in political risks across Europe which could reduce upward pressure on the strong Swiss franc.

EM Currency Risk Profile in a New Era – Financial Times (subscription)

Foreign capital flows may be embarking on a fourth great wave.

Here’s the Latest Bet from the Central Bank That Outsmarted Soros – Bloomberg

Kazakhstan’s central bank, which exited its investment in the pound before Britain’s surprise vote to leave the European Union a year ago, is growing more upbeat about the UK currency while taking a dimmer view of the euro and the yen.

South Korea Vice Fin Min Says Government Does Not Offer Assessments on Currency Levels – Reuters

South Korea’s vice finance minister said the government does not offer assessments on foreign exchange rates, and declined to comment on the potential effects of the US Federal Reserve interest rate hike.

Regulatory News

Dodd-Frank Repeal Bill: What Does It Mean? – Profit & Loss (subscription)

If it is enacted, the bill passed by the House will lead to a whole range of changes to Dodd-Frank.

Fed Considers Easing Capital Rule Seen as Hampering Swaps Market – Wall Street Journal (subscription)

An esoteric requirement that bankers and some US officials have long said discourages firms from participating in the derivatives market – and makes the financial system less safe – is on the regulatory chopping block.

Treasury’s Mnuchin Asks for More Power to Oversee Wall Street Banks – CNN

Treasury Secretary Steven Mnuchin wants Congress to expand his powers, giving him more influence over the Trump administration’s efforts to loosen regulations governing Wall Street and other financial institutions.

SEC and CFTC Will Align on Derivatives Rules, Cox Tells Funds – Risk (subscription)

Ex-SEC head says hedge funds should expect greater harmonisation between regulators.

‘Notable’ Swap Spread Moves Point to Bets on Looser US Bank Regulation – Financial Times (subscription)

Market measures of bank balance sheet constraints have moved markedly since the release of the Treasury’s report on financial regulation, suggesting some investors may be beginning to price in an easier regulatory environment for banks.

Company News 

Use of FX Algos on the Rise: Survey – Profit & Loss

New research from Greenwich Associates shows that long-term investors corporate end-users are turning to algorithms in FX trading.  

Germany Sees First Applications from Banks Wanting to Move Due to Brexit – Wall Street Journal (subscription)

Bundesbank board member expects most banks to make their relocation decisions by the middle of this year. 

AxiomSL Appoints FXall Founder Philip Weisberg as Strategic Advisor – Finance Magnates

AxiomSL, a provider of regulatory reporting, data, and risk management solutions, has appointed former Thomson Reuters’ head of FX trading Philip Weisberg as a Strategic Advisor, according to information made public on his Linkedin profile.

Hotspot Introduces Summary Depth Feed and Replaces Price Modify Function – Finance Magnates

CBOE’s institutional foreign exchange venue, Hotspot, announced that it will be introducing its summary depth feed on July 5, 2017 to deliver aggregated depth and trade information for the FX marketplace operated by Hotspot.

Saxo Signs Up to the FX Global Code – Profit & Loss

Saxo Bank has signed up to the FX Global Code of Conduct, which is aimed at improving industry standards and promoting best practice among FX market participants.

Market Savvy

Most Asian Currencies Edge Up as US Inflation Data Dents Dollar – Reuters

Most Asian currencies edged higher, buoyed by a retreating dollar as US inflation data was weaker than expected, leaving investors doubting there will be a third rate hike this year by the Federal Reserve.

Canadian Dollar Climbs After Hawkish BoC Vomments – Financial Times (subscription)

Investors injected further momentum into the Canadian dollar rally, egged on by hawkish comments from policymakers, pushing it to its best level against its US counterpart for 3½ months.

Australian Dollar Rallies in Asia Forex Trading – Financial Times (subscription)

The Australian dollar led gains in Asia after new data showed new employment rising by more than four times the expected level in May.