The dollar climbed for a second consecutive day as investors took profits into a recent drop in the greenback in the backdrop of firmer bond yields and a central bank policy decision due this week.
The dollar’s up against all of its major peers right now and that’s a good opportunity to sell, according to some Wall Street forecasters.
Sterling fell to a one-week low against the dollar amid renewed worries about the impact of Brexit on the UK economy and the progress of talks to exit the European Union.
The US Justice Department and the country’s derivatives regulator said they had filed civil and criminal charges against three European banks, which paid $46.6 million to settle the cases, and eight individuals for alleged manipulation in US futures and commodities market.
Australia’s corporate regulator said it had started legal proceedings against Commonwealth Bank of Australia over rate-manipulation allegations.
According to new research from ANZ Bank, around 70% of the total move in the Australian dollar tends to occur just five seconds following its release.
One of the most controversial elements of Mifid II, the open access requirement for CCP’s and trading venues may not be implemented until 2020, as local regulators granted last minute extensions.
- Mifid II’s Cost Disclosure Regime Muddies the Waters – Financial Times (subscription)
- MiFID II Unbundling Has Global Impact – Markets Media
Although it required a heavy lift from the financial services industry, the Mifid II implementation deadline came and went with minimum disruption.
Central counterparties (CCPs) should contribute twice to the cost of covering a member default, argue researchers at the Federal Reserve Bank of Chicago.
Federal judges in Brooklyn, New York, are about to rule on the question.
- Governments Worry That Cryptocurrencies Could Be the ‘Next Swiss Bank Account’ – Bloomberg
- Crypto Firm Ordered to Stop Broker Business by German Watchdog – Bloomberg
Proposals from the European Parliament could leave central counterparties with the power to dip into the initial margin accounts of clearing members during a crisis.
The introduction of tougher fee disclosure rules in Europe spells bad news for high charging fund groups in Asia, as local regulators look to emulate the Mifid II rules.
Japan’s Financial Services Agency unsure if hacked exchange is able to repay customers.
- Japan’s Cryptocurrency Whiz Kid Faces $530 Million Reckoning – Wall Street Journal (subscription)
- Record Crypto Heist Raises the Appeal of a New Type of Exchange – Bloomberg
US private equity firm Blackstone Group is in advanced talks to buy an approximate 55 percent stake in the Financial and Risk business of Thomson Reuters, a deal that would value the unit at about $20 billion including debt, three sources familiar with the matter said.
Former RBC Capital Markets managing director Graeme King and ex-London Capital Group FX head Peter Wells are launching an FX-focused investment management business.
The London-based technology firm said it has delayed its launch to expand its brief to include credit management.
Most Asian currencies fell as a rise in bond yields prompted a slight recovery in the dollar, while market participants awaited clues on US fiscal policy from a two-day Federal Reserve meeting.
Poland’s Monetary Policy Council (MPC) member Jerzy Zyzynski said that the zloty currency has a potential for further strengthening after it rose to euro recently, but further firming could hurt exports.
Politics, protectionism and persistent structural problems cloud rosy outlook.