Top Headlines

Dollar Steadies After Worst Quarter in Seven Years – Reuters

The dollar recovered some ground as a rise in US government bond yields to their highest in seven weeks helped halt a run of losses that added up to the currency’s worst quarter since 2010.

US Dollar Net Longs Fall to Lowest in About a Year: CFTC, Reuters – Reuters

Speculators cut net long positions in the US dollar to the lowest level in nearly a year, according to calculations by Reuters and Commodity Futures Trading Commission data.

Dollar Bulls Face Perilous Start to Second Half as Payrolls Loom – Bloomberg

After the worst start to a year for the greenback since 2006, the end of the first half couldn’t come quick enough for the dwindling ranks of dollar bulls. Yet if history is any guide, it could soon get even worse.

Sterling Stumbles After Weak UK Manufacturing Data – Reuters

Sterling slipped back below $1.30 after weaker-than-expected data from Britain’s manufacturing sector led investors to think twice about whether the Bank of England will raise interest rates this year.

Euro Logs Best Quarter Against the Dollar Since 2010– Financial Times (subscription)

Growing signs that the European Central Bank could put an end to an era of easy money by raising interest rates helped power the euro to its best quarter in nearly seven years.

HK Dollar Breaks HK$7.81 for 18-Month Low – Financial Times (subscription)

The Hong Kong dollar commemorated the 20th anniversary of the territory’s return to China with… a new low, breaking through HK$7.81 against the dollar for the first time in 18 months.

Yen Erases Gain as Focus Returns to US Data After LDP Defeat – Bloomberg

The yen erased gains as the focus returned to US economic data due this week after earlier surging on a local election loss in Tokyo by Prime Minister Shinzo Abe’s ruling party.

Will More Central Banks Shift Policy Towards Tightening? – Financial Times (subscription)

Sweden’s Riksbank is the next to watch, while easy BoJ money might further weaken the yen.

US Dollar Share of FX Reserves Slips in 1st Quarter, Yen’s Share Up: IMF data – Reuters

The US dollar’s share of global foreign exchange reserves edged lower in the first three months of the year, compared with the previous quarter, but the greenback remains the largest reserve currency held by global central banks, according to IMF data.

Aussie Dollar Defies the RBA’s Five-Year Plan – Bloomberg

When the RBA board meets Tuesday – with policy expected to remain unchanged – they will find three Federal Reserve rate hikes in six months has sent the currency up almost seven percent.

Why Retail FX Brokers Should Be Just That – Profit & Loss (subscription)

There are clear reputational issues around the retail business.

Regulatory News

Brexit Set to Blow Hole in Common EU Budget, Brussels Warns – Financial Times (subscription)

Tapping money that the European Central Bank makes from issuing currency, and applying common energy or environmental taxes to imports were among the options put forward by Brussels in a paper on reforming the EU budget.

CFTC’s Giancarlo to Ask Bank Regulators to Relax Swaps Margin Standards for Banks’ Overseas Units – MLex FS Core (subscription)

Christopher Giancarlo, head of the US Commodity Futures Trading Commission, said he will try to get US bank regulators to ease recent margin requirements that apply to US banks’ overseas affiliates engaging in uncleared swap transactions.

Blockchain Technology Will Challenge Orthodoxies Foundational to Today’s Financial Market Infrastructure: CFTC – Econo Times

In its budget request for FY18, the US Commodity Futures Trading Commission (CFTC) has asked for additional funds to increase staffing and resources in order to address fintech innovation.

Company News

Nex Launches Automated Netting Service – Profit & Loss

NEX Optimisation (Nex) has launched a fully automated settlement netting service to streamline the bilateral settlement netting process for market participants.

British Banks Stops Trading Qatari Riyal – Financial Times (subscription)

Several British banks have stopped trading Qatari riyals for retail customers, as the extended diplomatic crisis in the Gulf puts growing pressure on the currency.

Why You Won’t Be Buying a Coffee with Bitcoin Anytime Soon – Wall Street Journal (subscription)

The cost of buying or selling the digital currency recently hit an all-time high, making day-to-day transactions like buying a cup of coffee impractical.

Market Savvy

C$ Notches Nine-Month High on Oil Price Climb, Rate Hike Bets – Reuters

The Canadian dollar hit a nine-month high against its US counterpart, boosted by higher oil prices and domestic growth which supported the Bank of Canada’s recent switch to a more hawkish stance.

Koruna Clings on to Gains After Central Bank Comments – Financial Times (subscription)

One euro now buys CZK26.24, set against the earlier peg of CZK27 – an orderly break to a currency-management policy by any standards.

PMIs Underpin Currencies, Romania Seen Keeping Rates on Hold – Reuters

Central European currencies mostly firmed as June manufacturing data showed continuing economic growth in the region.