Top Headlines

Euro Holds Below 14-Month Highs Before ECB Decision – Reuters

The euro hovered below a 14-month high before a policy decision by the European Central Bank that may lay the grounds for a policy shift later this year.

Dollar Finds Its Feet Ahead of BoJ and ECB Policy Calls – Financial Times (subscription)

It’s the morning after a long, dark session for the dollar and the world’s reserve currency is finding support.

Hard Brexit Fears Dog Sterling as Retail Numbers Improve – Reuters

Sterling dipped back below $1.30 on concern UK ministers are prepared to walk away from Brexit talks without a deal.

Goldman Sachs Says Take Profit on Emerging-Market Carry Trade – Bloomberg

Goldman Sachs told investors to close out of an emerging-market carry-trade recommendation it made eight months ago, saying there was little scope for appreciation.

Keeping Pace with Automation – Profit & Loss (subscription)

As the FX market becomes more automated and continues trading faster, the industry needs to implement better controls to prevent disruptive behaviour, says Greg Wood, SVP, global industry operations and technology at FIA.

Last Look Has Not Been Resolved – Profit & Loss (subscription)

It’s not about whether it should be banned or not, it’s the number of liquidity providers that do not disclose their use of the practice.

US Appeals Court Voids Libor Convictions of Ex-London Traders – Reuters

A US appeals court overturned the convictions of two former London traders from the first US criminal trial stemming from the worldwide probe into manipulation of the Libor interest rate benchmark.

Brazil Securities Watchdog Opens Forex Probes Against J&F Units – Reuters

Brazil’s securities watchdog CVM has opened two probes into foreign exchange transactions by units of J&F Investimentos, which has been at the center of a corruption scandal.

Regulatory News

Wall Street Banks That Complain About Burdensome Rules Made $20 Billion Last Quarter – Quartz

Five of the biggest banks in the US have now reported second-quarter profits, which add up to a bumper $20 billion.

Swaps Users Face Potential Margin Bill for Libor Transition – Risk (subscription)

New margin rules could snare legacy trades amended to reference alternative rates, lawyers warn.

Financial Watchdog: Businesses Poised to Leave London Without Brexit Grace Period in Place – City AM

City firms will kick off their Brexit contingency plans by the end of the year unless the government agrees a transitional deal with the EU, the head of the UK’s top financial watchdog warned.

US Banking Regulator Supports Giving National Licenses to Financial-Technology Firms – Wall Street Journal (subscription)

Acting comptroller Keith Noreika says federal system needs to be inclusive, accommodate new banks.

Company News

Survey: FX Prime Services – Profit & Loss

The Q3 edition of Profit & Loss will feature an in-depth special report on FX prime services, looking at the significant changes that have occurred in this segment of the market and how these will impact trading firms in the future.

Nevistich Back at Nex – Profit & Loss

Douglas Nevistich has re-joined NEX (Nex) Group in New York.

Morgan Stanley Picks Frankfurt for Its New EU Trading Hub – Bloomberg

Morgan Stanley has become the latest global bank to pick Frankfurt for its new trading headquarters inside the European Union after Brexit, according to people briefed on the decision.

trueEX Granted Injunction in MarkitSERV Case – Risk (subscription)

Court decision means derivatives trading venue can stay open for at least another nine months.

TradAir Partners with Snap – Profit & Loss

TradAir has partnered with Singapore-based technology firm Snap Innovations, to jointly develop FX solutions, initially for Asian market participants.

Market Savvy

Mexico’s Peso Cheered by Improved Credit Outlook – Reuters

Mexico’s peso hit a new high following an improved credit outlook for the country and a Reuters report detailing an aggressive timetable for trade talks between Mexico, the United States and Canada, before shedding gains later.

Aussie Dollar, Banks Climb in Wake of Employment Figures – Financial Times (subscription)

The Australian dollar was pushing toward the $0.80 mark and banks Down Under were rallying following data that showed the national unemployment rate unchanged in June at 5.6 per cent.

Emerging Stocks Snap Eight-Day Winning Streak, Rand Falls Pre Rate Decision – Reuters

South Africa’s rand was pressured by the possibility of an interest rate cut later in the day.