Top Headlines

Euro Hits Eight-Year High Against Pound on Diverging Forecasts – Financial Times (subscription)

Europe’s common currency has hit its strongest level against sterling in eight years, reflecting the diverging economic outlook for the eurozone and the UK and its implications for their respective central banks’ policymaking.

ECB’s Hansson Shrugs Off Euro Gains for Now – Bloomberg

European Central Bank policy maker Ardo Hansson said he isn’t currently concerned about the strength of the euro as officials prepare to discuss how to wind down their bond-purchase program.

Sterling Falls to New Two-Month Lows as Outlook Worsens – Reuters

Sterling fell to a new two-month low against the dollar as the lack of any major economic data encouraged investors to add bets against the British currency.

Dollar Steadies Ahead of Jackson Hole Meetings – Reuters

The dollar steadied after another politically-driven slide against the euro and yen, helped by nerves over what message Federal Reserve policymakers will send during meetings in Jackson Hole starting later in the day. 

Mario Draghi and Janet Yellen Pose Headline Risks for Traders – Financial Times (subscription)

Central banks gathering in Jackson Hole may spur sleepy August markets into life.

China Reform Plans Could be Stifled as Economy Cools – Financial Times (subscription)

Twelve months ago, capital was still haemorrhaging out of China, draining the foreign currency reserves and dragging the renminbi down.

Currency Rallies Test Central Bankers’ Powers to Sway Markets – Bloomberg

This week’s gathering of central bankers in Jackson Hole presents policy makers a chance to talk down their currencies after months of gains versus the dollar. They can’t all win.

One of Bitcoin’s Big Winners Is Raising $100 Million for a Crypto Fund – Bloomberg

Jehan Chu says he’s got an early-mover advantage that will help his cryptocurrency fund stand out from the crowd.

Wall Street’s Cowboy Traders Find New Riches in Bitcoin and Cryptocurrencies – Forbes

With cryptocurrencies like bitcoin quadrupling in value this year alone, high frequency players are finding their way to the new Wild West of trading that some believe is in bubble territory.

Data Is the Answer – Profit & Loss (subscription)

And the question is: why is there such a divide in the industry over how much longer it takes to accept or reject a trade?

Regulatory News

Big US Banks Could See Profit Jump 20% With Deregulation – Bloomberg

The deregulation winds blowing through Washington could add $27 billion of gross profit at the six largest US banks, lifting their annual pretax income by about 20 percent.

What Happened to the ‘Too Big to Fail’ Banks? – Financial Times (subscription)

While some have fallen down the global league table, many are larger today.

More Than 70,000 City Managers Could be Held Personally Responsible for Misconduct Under the FCA’s New Accountability Rules – City Am

The number of senior managers in financial services firms who could be held personally responsible for misconduct has increased to 72,000, according to new research from law firm Cleveland & Co.

Lots of Firms May Dodge the Full Brunt of MiFID – Bloomberg

Europe’s MiFID II rules haven’t even kicked in, yet policy makers are already busy trying to make sure their oversight of financial markets is up to date.

Mr. Trump Sides with Wall Street; You Lose – The New York Times

The Trump administration has no grounds for blocking the “fiduciary rule,” an Obama-era regulation that requires financial advisers to put their clients’ interests first when giving advice or selling investments for retirement accounts. 

Amsterdam’s Secret Brexit Sauce Is a Friendly Regulator – Bloomberg

Frankfurt has the banks, and Paris has the culture, but for trading firms looking for a post-Brexit European home, Amsterdam may have the best attraction of all: a friendly regulator.

Company News

Alves Departs FX Connect – Profit & Loss

Paul Alves has left his role as senior managing director at State Street and global head of the FX Connect and FX Connect Trade Services product suite.

Mirsky Leaves Edgewater Markets – Profit & Loss

Scott Mirsky has left his position as director, e-FX sales at Edgewater Markets, according to market sources.

Mackinnon Exits AxiTrader – Profit & Loss

Alex Mackinnon has left AxiTrader in Sydney where he was general manager, ending a four year spell at the firm.

Raymond Joins Taaffeite Capital Management – Profit & Loss

Quant CTA Taaffeite Capital Management has announced the appointment of Ronald Raymond as COO.

EBS Solves Internalization and Last Look Issues in FX – Finance Feeds

Aggregation of trades via single-ticket execution is not new to non-bank commercial electronic communication networks, often referred to as ECNs.

LucidExchange Launching Futures on Blockchain as It Seeks CFTC Registration – Crypto Ninjas

LucidExchange has a proprietary matching algorithm, that allows individuals to directly trade (peer-to-peer) option smart contracts without the costs and delays associated with trading securities through traditional brokerages.

Market Savvy

Investors Bullish Asia; Long Yuan Positions at Near Three-Year Highs: Reuters Poll – Reuters

Investors positioned themselves for further gains in Asian currencies against the dollar on expectations the US currency will soften further in the coming months, a Reuters Poll showed.

South Korean Won, Peso Lead Gains but Tone Cautious Ahead of Jackson Hole – Reuters

The South Korean won and the Philippine peso led Asian gains against the dollar, but traders were cautious ahead of a gathering of global central bankers in Jackson Hole, Wyoming.

South African Rand Edges Lower as Emerging Markets Wobble – Reuters

South Africa’s rand weakened in early trade as emerging markets gave back recent gains after US President Donald Trump cast doubt on the future of the North American Free Trade Agreement.