Top Headlines
Dollar Inches Higher Ahead of Jackson Hole – Reuters
The dollar gained more ground against the yen and the euro as traders bet Federal Reserve chief Janet Yellen would promise to push forward with plans for tighter monetary policy.
- Dollar Edges Higher Ahead of Jackson Hole Conference – Wall Street Journal (subscription)
- US Dollar Steady Ahead of Yellen, Draghi – Financial Times (subscription)
FX Market Ripe for Volatility with Jackson Hole Expectations Low – Bloomberg
The scuttlebutt around Wall Street is that this year’s economic symposium in Jackson Hole, Wyoming, a who’s who of central bankers and global policy makers, will be a dud as far as financial markets are concerned.
Sterling Set for Fourth Consecutive Week of Losses – Reuters
Sterling steadied after falling to a two-month low against the dollar in the previous session, as investors waited to see what Federal Reserve chief Janet Yellen would say in a speech later in the day.
ING: More Sterling Weakness to Come, But Euro Parity Unlikely – Financial Times (subscription)
The pound will continue to slide against the euro in the coming months and will take longer than previously expected to recover, but is unlikely to reach parity with the single currency, according to analysts at ING.
RCI: Former Currency Dealer Claims Moved Up to US$800m a Day – The Malay Mail
A former currency dealer told a royal inquiry that he traded as much as US$800 million a day in the 1990s when Bank Negara Malaysia allegedly lost billions in the foreign exchange market.
Former SocGen Bankers Indicted in US Over Libor – Profit & Loss
Two former senior managers at Société Générale have been indicted by the US Department of Justice for their role in allegedly manipulating London Interbank Offered Rate (Libor) rates.
The Federal Reserve provided $36 million (28.13 million pounds)of liquidity to foreign central banks in the latest week via its swap lines for foreign central banks, the New York Fed said.
XTX’s ‘Zero Hold Time’ Adds to Debate Over ‘Last Look’ Practices – Euromoney
The latest review of last look prompted by the FX global code has set off further debate over the use of holding windows and latency buffers.
Frankfurt Hopes to Become ‘Little London’ After Brexit – Reuters
Frankfurt could become a miniature version of London after Brexit, a city official has predicted, after a study said tens of thousands of jobs would be created, bolstering Germany’s banking capital.
Regulatory News
EU Should Prioritize Reporting Changes – Markets Media
The European Post Trade Forum said the Commission should set a high priority on addressing the lack of harmonization across multiple post-trade reporting requirements in the region as this hampers investment.
Volcker Rule Rollback Is Not the Kind of Reg Relief Small Banks Need – American Banker
The Volcker Rule neither favors nor disfavors community banks.
Australia Says Organized Crime in Financial Sector Costing $28 Billion a Year – Reuters
The government is concerned that encryption technology, including cryptocurrencies, allows transactions to evade detection, potentially enabling criminal activity and tax evasion.
MiFID II Passporting Changes for FX Brokers Highlighted by CySEC – Leap Rate
Cyprus financial regulator CySEC has issued a circular highlighting the changes which will take effect come January 2018 in how CySEC-regulated brokers can passport their CIF license to other EU countries.
Company News
CME Extends and Expands FX Futures Incentive Scheme – FOW (subscription)
The exchange will also temporarily suspend trading in its USD/Mexican peso contracts.
Regulatory Head Firmly in the Sand – Finance Feeds
FX portfolio managers and MAM account providers need not worry about FCA asset management report.
SEC Suspends Trading in First Bitcoin Capital – Finextra
The Securities and Exchange Commission has suspended trading in the shares of First Bitcoin Capital, in part because of concerns over the “accuracy and adequacy” of public information about the firm’s assets and capital structure.
This Tangled Web: Banks Seek to Contain Systemic Model Risk – Risk (subscription)
Network studies are being used to identify model dependencies and concentrations.
Market Savvy
Dollar Rangebound as Summer Market Awaits Jackson Hole Speeches – Bloomberg
The dollar held onto slight gains established overnight as central bankers began gathering in Jackson Hole Thursday, with most major currency pairs little changed from the European trading session.
Most Asian Currencies Set to End the Week with Gains; Await Yellen, Draghi – Times of India
Asian currencies were mostly steady as investors cautiously awaited a global central bank conference, but most regional units were poised to end the week with solid gains.
C$ Outperforms Despite Oil Slump as Yellen Speech in Focus – Reuters
The Canadian dollar clung to gains against the US dollar, outperforming key currency rivals even as oil prices fell and the greenback inched higher ahead of a meeting of global central bankers.