Top Headlines
Dollar Hits Seven-Week High vs. Yen as BOJ Eases, Payrolls Eyed – Reuters
The dollar hit a seven-week high against the yen after the Bank of Japan increased its purchases of government bonds, expanding monetary policy at a time when other major central banks are moving towards tightening.
Sterling Hits Day’s Lows After Data; Stocks Recover – Reuters
Sterling slipped to the day’s lows against the dollar setting it up for its worst weekly performance in a month, and bond yields softened after industrial output data unexpectedly contracted in May, posing fresh challenges for the UK economy.
Hong Kong Braces for Higher Rates as Currency Losses Quicken – Bloomberg
City’s dollar has weakened to midpoint of trading band.
Australia’s Story of the Week Was a Whole Lot of Nothing – Bloomberg
Aussie currency retreats as policy makers retain dovish tone.
Can Blockchain Open Up FX Market Access? – Profit & Loss (subscription)
Rosario Ingargiola, founder and CEO of OTCXN, argues that accessing wholesale liquidity is one of the biggest challenges in the FX market today that could be alleviated by fintech solutions.
Will Trading Jobs Really Move Out of London After Brexit? – eFinancial Careers
There are two very different accounts of Deutsche’s plans for its traders in future. Both cannot be true.
Regulatory News
Clearing Houses Get Ultimatum to Fix Serious ‘Shortcomings’ – Reuters
Global regulators warned of shortcomings in efforts to ensure that clearing houses can recover from a crisis without a meltdown in the financial system or a taxpayer bailout.
The G20 nations, which will meet in Germany, have been given a “could do better” report over how well they are prepared to deal with the wind-up of large financial institutions.
US Regulator Seeks to Fill Crisis-Era Gaps Riddling Swaps Data – Bloomberg
CFTC effort will seek to standardize data sent to repositories.
Large Corporates Unconvinced by Emir Reporting Gift – Risk (subscription)
Corporates ask for opt-out from Emir reporting changes proposed for their benefit.
Company News
Nex Launches Credit Rebalancing Tool – Profit & Loss
NEX (Nex) Optimisation has launched an automated credit rebalancing tool that specifically addresses limit over-allocation by prime brokers.
Buy side Backs trueEX in Tussle with Markit – Risk (subscription)
Asset managers worry legal dispute could force trueEX out of business.
Twenty Eight Global Banks to Test Swift Blockchain Application – Finextra
Interbank messaging network Swift says that 22 additional global banks have joined its blockchain proof of concept (PoC), designed to validate whether the technology can help banks reconcile their international nostro accounts in real time.
Market Savvy
Rand, Lira and Rouble Rout Rumbles On – Reuters
More falls for the rand, rouble and lira capped what was set to be one of the worst weeks of the year for emerging markets, with investors – who have seen billions of dollars wiped off portfolios – bracing for more turbulence ahead.
Asian Currencies Tepid After Global Bonds Sell-Off; US Jobs Data in Focus – Reuters
Most Asian currencies traded cautiously as global sovereign debt yields were elevated across the board on bets the European Central Bank (ECB) is moving closer towards unwinding its monetary stimulus, even as investors awaited the US June jobs report.
Aussie Dollar to Fall Further – News
The Australian dollar is down against its US counterpart, back below 76 US cents even though the greenback has also fallen after a round of weaker-than-expected US employment data.