Top Headlines 

Euro Extends Gains After Breaking $1.20 Line – Reuters

The euro jumped more than half a percent as investors bought the single currency, betting on the diverging fortunes of the improving euro zone economy relative to its struggling US counterpart.

Draghi Seen Putting a Lid on Euro as Traders Test Pain Threshold – Bloomberg

The chances of verbal intervention from European Central Bank President Mario Draghi against the euro’s appreciation increased after the currency climbed to its strongest level in more than two years versus the dollar, according to foreign-exchange strategists.

Dollar Falls on Concern Over Harvey’s Economic Toll – Financial Times (subscription)

The dollar is heading for its longest monthly losing streak in 14 years despite staging a recovery late on Tuesday, as concerns about tropical storm Harvey’s impact on the US economy combined with fresh tensions over North Korea to push bond yields lower.

Goldman Sachs Fund Manager Says Dollar Pain Trade Is Flashing a Buy Sign – Bloomberg

Just as the biggest rout for the dollar in at least six years is sending investors fleeing, at least one observer says it’s time for value-oriented money managers to start piling in.

Sterling Licks Wounds vs Resurgent Euro; Outlook Weak – Reuters

Sterling nursed losses after falling to an 11-month low against the euro in the previous session as investors remained sidelined with little interest in trading the currency amid ongoing Brexit negotiations.

DoJ Fears FX Civil Suit May Compromise Criminal Cases – FX Week (subscription)

It moves for judge to stay staff depositions at seven banks for fear of witness intimidation.

Bank Jobs Are Bleeding Out of London – And Brexit Hasn’t Even Kicked in Yet – CNBC

Despite fears of irrevocable damage, the City of London is unlikely to change substantially once the UK leaves the European Union.

Central Africa Must Find Its Own Solutions – Financial Times (subscription)

At the recent G20 summit, Emmanuel Macron, the French president, for his part recommended a new strategy that could involve shedding the 50-year-old currency peg.

Regulatory News

European Commission Finally Shuts Down SI Loophole – The Trade

After months of controversy surrounding the systematic internaliser (SI) regime under MiFID II, the European Commission has made its move to shut down a potential loophole.

Mifid II Will Deliver Long-Overdue Value for Money – Financial Times (subscription)

New EU rules are great news for pension funds and retail investors, says Norma Cohen.

New York Firms Feel the Heat from New Cyber Regs – Waters Technology (subscription)

State regulator’s rules come into effect for a broad swath of financial firms in New York, presenting unique challenges.

SEC Should Follow the Labor Department’s Fiduciary Standard – Market Watch

It’s a question the SEC should take seriously as, at Clayton’s direction, it reviews public comments on the fiduciary duty of financial professionals to their clients.

Company News

Gain Capital Adds Payments Service – Profit & Loss

Gain Capital has announced the launch of a new money transfer service on its brand.

CME Direct Clearing Launch Delayed – FOW (subscription)

The launch would make the Merc the fifth major clearer to launch a direct clearing membership.

Top Stocks, Companies and Cryptocurrencies to Invest in for the Blockchain Boom – Business Insider

Blockchain technology has been heating up in the past several months, thanks in large part to the surge in Bitcoin’s price since early May.

Market Savvy

C$ Pulls Back from Four-Week High as Oil Prices Dip – Reuters

The Canadian dollar pulled back from a four-week high against its US counterpart as oil prices dipped, while the greenback lost ground broadly as investors weighed a North Korean missile test.

Australian Dollar Gives Ground to Sterling on Geopolitics, Housing Stats – Pound Sterling Live

The Australian dollar was a casualty of the market’s desire for safe-haven assets in the wake of renewed tensions on the Korean peninsula.

Chile Peso Touches Two-Year High vs Dollar as Copper Soars – Reuters

The Chilean peso hit the strongest level in over two years as prices of copper soared, lifted by falling global inventories of the base metal, a key Chilean export.