Dollar Strengthens as Trade War Fears Fade, Risk Appetite Returns – Reuters
The Chinese yuan rebounded and the dollar strengthened broadly as investors bought riskier assets, encouraged by signs that trade tensions have yet to hurt economic momentum.
- Dollar Gains as Investors Take Profits on Europe, Emerging-Market Bets – Wall Street Journal (subscription)
- US Jobs Data Spur Welcome Shift in Market Narrative – Financial Times (subscription)
Sterling Edges Up from Day’s Lows; Data, Politics Eyed – Reuters
Sterling rose from the day’s lows though investors were wary of pushing it higher before data that may raise hopes of an interest rate hike in August and rising political uncertainty after the resignation of two top ministers.
- Sterling Edges Higher Ahead of UK Data Rush – Financial Times (subscription)
- Pound Slips as Resignations Raise Questions About May’s Survival – Bloomberg
City Reaction as Boris Johnson and David Davis Quit in Brexit Protest – Financial News (subscription)
The UK government has been rocked by the departures of its chief Brexit negotiator and foreign secretary, casting further uncertainty over both the country’s path to leaving the European Union and the stability of Prime Minister Theresa May’s government.
ECB’s Nowotny Cautions Over Dangers of Unintended Currency War – Financial Times (subscription)
ECB governing council Ewald Nowotny has warned there could be an accidental currency war if a global trade battle escalates further.
Fastest FX Market Makers Ramp Up Trading to $700 Billion a Day – Bloomberg
Nonbank liquidity providers increased their foreign-exchange trading volumes to an estimated $700 billion a day last year, from $575 billion in 2016, according to Forex Datasource, a research and advisory firm.
Dispelling Misconceptions About Currency Hedging – Profit & Loss (subscription)
Momtchil Pojarliev, deputy head of currencies at BNP Paribas Asset Management, talks about some of the misconceptions that exist amongst institutional investors regarding currency hedging.
Banks Should Recognise Asia’s Growing FX Stature – Business Times
In any given day recently, more than US$1.3 trillion in currencies would have been traded in the major Asian financial centres of Singapore, Hong Kong and Tokyo – much of it before the traditional FX centre, London, has woken up.
Hong Kong Banks Fear Clashing Swaps Margin Rules – Risk (subscription)
Banks and non-bank securities firms in Hong Kong fear they may face conflicting variation margin (VM) rules, after a consultation from the local securities regulator contradicted earlier measures issued by the banking regulator on several key aspects
Eonia Woes Hold Up Euro Swaptions Switch – Risk (subscription)
A long-awaited revamp of euro swaptions pricing has collided with efforts to shore up global interest rate benchmarks, presenting an obstacle that may be easy to overcome – or may not.
Big Banks, Feeling Unloved in Trump’s Washington, Shake Up Lobbying – Politico
Megabanks tarred by the financial crisis and a series of scandals are seeking to rejuvenate their image — sometimes through jarring efforts.
IHS Markit Approved to Operate as Benchmark Administrator – The Trade
IHS Markit has been granted approval by the UK’s financial watchdog to operate as an authorised benchmark administrator under the European Benchmark Regulation (BMR).
New Paper Reveals Massive Bitcoin Backing – Forbes
Bitcoin and cryptocurrency have been handed huge support from researchers at Imperial College London, who have said digital currencies are primed for mass adoption.
Cryptocurrency Funds Want to Branch Out but Held Back – Pensions & Investments (subscription)
Large custodians’ lack of cryptocurrency capabilities means hands off for institutional investors.
Half of ICOs Die Within Four Months After Token Sales Finalized – Bloomberg
About 56 percent of crypto startups that raise money through token sales die within four months of their initial coin offerings.
The London School of Cryptonomics – Financial Times (subscription)
Now, LSE appears to be lending its considerable prestige to the world of crypto trading, with a new online course entitled “Cryptocurrency Investment and Disruption”.
Thomson Reuters Bucks the FX Volume Trend – Profit & Loss
Data released by Thomson Reuters shows that average daily volume (ADV) in spot FX across its venues rose by just under 2% in June from the previous month.
BNY Mellon Continues Hiring Spree in FX Prime Brokerage Business – Finance Magnates
The Wall Street bank appointed Matthew Berson as head of FX prime brokerage for North America.
TP Icap Fires Chief Phizackerley As It Warns on Higher Costs – Financial Times (subscription)
TP Icap has fired chief executive John Phizackerley, after warning it would need to lower its targets for integrating its ICAP purchase and raise spending in coming years.
Emerging Markets Fight Back to Bolster Currencies – Wall Street Journal (subscription)
Emerging-market central banks are tapping a roughly $6 trillion stash of foreign-exchange reserves as they struggle to contain deepening currency declines.
Lira Crashes After Erdogan Unveils New Cabinet – Financial Times (subscription)
The Turkish lira hit the skids, plunging the most in six weeks after Recep Tayyip Erdogan further tightened his grip on the country by packing his new cabinet with people from his inner circle.