Top Headlines

Euro Hits 2017 High After Draghi Hints on Tapering – Financial Times (subscription)

The euro climbed to a fresh 2017 peak and eurozone sovereign bond yields reached five-week highs as investors bet remarks by Mario Draghi were a signal the European Central Bank chief was poised to withdraw economic stimulus measures.

The Draghi Effect Keeps Rolling; Deutsche Bank’s Euro Bears Give Up – Financial Times (subscription)

Deutsche Bank is taking it seriously enough to scrap its euro forecasts and jack them much higher.

Dollar Dives on Draghi Comments, US Healthcare Vote Delay – Reuters

The dollar slid to 10-month lows against the euro after the head of the European Central Bank opened the door to steps that might begin to reduce the central bank’s stimulus and after a vote on US healthcare legislation was delayed.

Sterling Hits Seven-Month Low Against Resurgent Euro – Reuters

Sterling hit a seven-month low to the euro, losing ground to renewed strength in the single currency after European Central Bank President Mario Draghi hinted the days of the bank’s stimulus programme are numbered.

Deutsche Bank Faces Possible $60 Million Derivative Loss – Bloomberg

Deutsche Bank, the German lender seeking to overhaul how it manages risks, made a bet on US inflation that puts the firm on course to lose as much as $60 million, people familiar with the matter said.

Japanese Bank Nomura has Officially Picked Frankfurt as Its Post-Brexit HQ and Will Move Jobs Out of London – Business Insider

Japanese bank Nomura has confirmed reports it is applying for a licence to operate in Frankfurt as its European Union base after Brexit.

Regulatory News

UK Regulator Calls for Radical Shake-Up of £7tn Investment Sector – Financial Times (subscription)

Financial Conduct Authority wants fund managers to present investors with all-in fee.

Trump to Nominate Republican Senate Staffer to Top Treasury Post – Wall Street Journal (subscription)

Christopher Campbell will be nominated as Assistant Treasury Secretary for Financial Institutions.

Wall Street Faces Cross-Border Conflict on Analyst Research – Wall Street Journal (subscription)

The Securities and Exchange Commission is weighing how to alleviate the harshest side effects of a European Union law that could have US repercussions for banks trying to comply with it.

Wall Street Regulators Make Budget Pitches to Congress – Reuters

Wall Street’s top two US regulators will urge Congress to approve budgets for fiscal 2018 that are at or above their current funding levels.

Bumpy Ride Ahead for EU Benchmarks Under BMR – Waters Technology (subscription)

The European Securities and Markets Authority’s (Esma’s) new Benchmark Regulation (BMR) brings the provision of benchmark indexes within regulatory scope for the first time in the EU when it comes into full force at the start of next year, concurrent with Mifid II.

A Mystery Fed Candidate Won a Seat at the FOMC Table, Then Walked Away – Bloomberg

Who got an invitation from Janet Yellen to sit at the most exclusive economic-policy table in the world, and turned it down?

Company News 

NEX Compression Service Hits $1 Quadrillion Mark – Profit & Loss

NEX Optimisation, announced that participants in its triReduce compression service have eliminated over $1 quadrillion in OTC derivative notional principal since its introduction in 2003.

Phiz Confident That Interdealer Brokers Have Not Lost Their Voice – Financial Times (subscription)

The head of TP ICAP is optimistic that trading on the phone will thrive in the face of electronic competition.

Buy Side Unimpressed with Mifid II Cost Transparency Rules – Risk (subscription)

Clients question value of receiving dealers’ swaps profit margin data.

G20 Watchdog Says Fintech Doesn’t Pose Threat to Financial Stability – Reuters

The rise of fintech does not pose any compelling risks to financial stability, according to a review by global regulators, but this may change as the sector grows.

Buy, Sell-Side Face Increased Regulatory Pressure – FOW (subscription)

59% of C-suite executives said regulation was a hindrance to growth, according to new study.

Market Savvy 

Keep Calm and Carry Trade in Summer FX Lull – Financial Times (subscription)

Emerging markets currencies in vogue as major pairs cool their heels.

C$ Hits Four-Month High on Firmer Oil, Softer Greenback – Reuters

The Canadian dollar touched its strongest level in four months against the greenback, supported by a crude oil rally and a broadly weaker US dollar, which lost ground against a basket of major currencies.

CEE Currencies Ease After ECB Signals Tweak to Stimulus – Reuters

Central European currencies eased after comments from ECB President Mario Draghi on monetary tightening stoked fears that the region’s higher-yielding but riskier assets may lose some of their appeal to investors.