Top Headlines

Dollar Settles After Biggest Weekly Rise in a Month – Reuters

The dollar edged down on Monday, having notched up its biggest weekly gain in a month last week as investors raised their long bets to the highest level since early 2017, although concerns the economic rebound may be fading has prompted caution about the outlook.

China Files Complaint to WTO Against US Proposed Tariff on Chinese Goods – Reuters

China’s commerce ministry said on Monday it had filed a complaint to the World Trade Organization regarding Washington’s proposed tariff list on $200 billion worth of Chinese goods on July 16.

French Banks Score Capital Victory Against ECB – Reuters

French banks won a landmark court victory against the European Central Bank on Friday, giving them an exemption from holding capital against customer deposits parked with a state-owned fund.

Bond Markets Signal Early End to Fed Rate Rises – Financial Times (subscription)

Bond traders are anticipating that an end to the Federal Reserve’s cycle of monetary policy tightening could come as early as next year, facing down policymakers that expect to raise interest rates for longer.

China Second-Quarter GDP Growth Cools – Reuters

China’s economic growth slowed as expected in the second quarter as the government’s efforts to tackle debt risks crimp activity and an intensifying trade war with the United States threatens to knock exports.

Theresa May Tries to Revive Brexit Plan Amid Conservative Onslaught – Financial Times (subscription)

Theresa May struggled to breathe new life into her Brexit plan on Sunday, insisting her proposal to stay close to Brussels regulations was necessary to avoid a “chaotic” EU departure, even as critics within her own party launched new assaults against the compromise.

Hedge Funds TurnUp Heat on Kiwi as Inflation Loses Traction – Bloomberg

New Zealand’s inflation data may go some way to explaining why hedge funds are getting increasingly bearish on the kiwi. 

Middle East’s Strategic Location Drives FX Growth – Euromoney

Less onerous regulatory requirements and the proximity to markets where retail FX is prohibited continue to encourage brokers to set up shop in the Middle East, despite ongoing state protection for the Saudi Arabian currency.

Regulatory News

FXC Critical of Shifting Compliance Burden to FX Dealers – Profit & Loss

The Federal Reserve Bank of New York’s Foreign Exchange Committee has issued a letter criticising market participants for trying to shift the burden of enforcing internal policies and controls towards FX dealers.

US Tries to Rein In High-Speed Trading in Farm Patch – Wall Street Journal (subscription)

The U.S. government is taking steps to protect agricultural markets from high-frequency traders—a move some say will make little difference down on the farm.

Treasury Association Launches FX Global Code Register – Profit & Loss

The European Association of Corporate Treasurers has today launched a register for corporates adhering to the FX Global Code.

Company News

Banks are Facing a Squeeze from Trump’s Trade War – Bloomberg

For banks that finance trade in Asia, the tariff war between the U.S. and China couldn’t come at a worse time.

How Goldman Sachs’ Computers Lost World Cup – Australian Financial Review  (subscription)

Goldman Sachs’ statistical model for the World Cup sounded impressive, but it was wring again and again.

Wells Fargo Finds Even More Customers that it Overcharged – CNN

Wells Fargo disclosed it’s setting aside another $285 million to refund foreign-exchange and wealth-management clients.

Bloomberg Says UBS Misused Proprietary Data – Law360 (subscription)

Bloomberg Finance LP hit UBS AG with a suit in New York federal court Thursday accusing the bank of violating an agreement that bars it from redistributing proprietary data through its portfolio analysis and risk management software.

Crypto News

BlackRock Begins Exploration of Bitcoin – Financial News

The asset manager has set up a working group to investigate ways it can take advantage of the fast-growing cryptocurrency market.

FSB Report Sets Out Framework to Monitor Crypto-Asset Markets

The Financial Stability Board today published a report delivered to the G20 Finance Ministers and Central Bank Governors on the work of the FSB and standard-setting bodies on crypto-assets.

Cryptocurrency Exchanges Are Getting Better In User Experience and Liquidity – Forbes

The world of cryptocurrency is traditionally known to have a number of setbacks for beginners that are trying to break into it.

Buy Bitcoin? Only if You’re Brave – Profit & Loss (subscription)

The key question confronting anyone thinking of trading, or investing, in bitcoin is – what is the rationale for buying?

Cryptocurrency Exchanges Are Getting Hacked Because It’s Easy – Wall Street Journal  (subscription)

Regulatory gaps and insufficient levels of defense have made some exchanges simple to breach.

Hong Kong Launches Blockchain-Based Trade Finance – Financial Times (subscription)

Hong Kong’s de facto central bank will go live next month with a blockchain-backed trade finance platform set to link up with 21 banks, including HSBC and Standard Chartered.

Market Savvy

Sovereign Wealth Funds Abandon Active Managers – Financial Times(subscription)

Sovereign wealth funds, widely regarded as some of the world’s most sophisticated institutional investors and the most prestigious clients of asset managers, are retreating from traditional active management for equities in favour of low-cost index-tracking strategies.

Beijing Will Hold Fire on Yuan Devaluation – Nikkei Asian Review (subscription)

China has allowed its currency to weaken but won’t use it as a weapon – yet.

Bearish Bets on Asian Currencies Recede Slightly, but Caution Prevails – Reuters

Investors trimmed their bearish positions on emerging Asian currencies over the past two weeks, a Reuters poll showed, although escalating Sino-U.S. tensions worsened the mid-term outlook for regional units.

Emerging Market Sell-Off Is Only Going to Get Worse – Bloomberg

With the Federal Reserve still boosting interest rates and President Donald Trump still raising tariff threats, the bottom for emerging markets remains some way away, market players say.