Top Headlines

Euro Pinned at Two-Month Lows as US Yields Weigh – Reuters

The euro fell to a two-month low as concerns that rising US Treasury yields would push the currency to break below a range it has been stuck within most of this year, prompting hedge funds to unwind some of their record long bets.

Sterling Falls to Five-Week Low on Dollar Rebound, Brexit Nerves – Reuters

Sterling fell to its lowest since mid-March, its sixth consecutive daily fall, as the dollar rebounded and investors worried about the performance of the British economy.

US Dollar Hits Strongest Level Since Early March – Financial Times (subscription)

The greenback climbed to its highest level in a month and a half, with investors bidding up the currency ahead of a slate of key economic events later this week.

Yields Approaching 3% Are Good News for Dollar Bulls – Bloomberg

Dollar bulls looking for a breakout are finally finding support from US interest rates as Treasury yields climb toward levels unseen since 2014.

Iran, China Seek to Loosen Dollar’s Grip on Global Markets – Wall Street Journal (subscription)

A small but growing number of countries are stepping up efforts to wean themselves off the dollar, aiming to chip away at the US currency’s decades long dominance.

Britain Hails New Optimism About Brexit Deal for Financial Services – Reuters

The British government and senior finance executives said they are increasingly confident Europe will offer financial companies generous market access after Brexit, boosting London’s hopes of retaining its status as a top global financial centre.

Germany Wants to Help UK Banks but Needs Concessions – Bloomberg

Germany wants to help UK banks get access to the European market after Brexit, but would need Britain to make concessions, according to a person familiar with the German government’s position.

Hedge Funds Make Historic and Increasingly Desperate FX, Bond Bets – Reuters

Hamstrung by a renewed slump in volatility and lack of clear market direction, FX and bond speculators are making historically big bets on a lower dollar and higher yields.

Swaps Market Off Pace for IM Rules: Isda Survey – Risk (subscription)

A majority of swaps participants believe the market is behind schedule for the remaining phases of incoming margining rules, according to a new survey.

Regulatory News

Ether, Ripple May Be Securities, Former CFTC Head Says – Bloomberg

Gary Gensler, the former chairman of the Commodity Futures Trading Commission, said that the cryptocurrencies Ether and Ripple could probably be classified as securities, subjecting them to greater regulatory scrutiny.

Iran’s Central Bank Imposes Ban on Cryptocurrency Transactions – Bloomberg

Iran’s central bank prohibited domestic financial institutions from handling virtual currencies, citing money-laundering concerns, as it seeks to ramp up control over the nation’s currency markets.

The SEC Wants Wall Street to Treat Clients Better. What’s at Stake? – Bloomberg

Proposal has prompted confusion, even among some SEC officials.

Company News

Cboe: Unusual Vix Moves Were Caused by Whale, Not Manipulation – Financial Times (subscription)

Cboe Global Markets said that a recent unusual move in the so-called fear gauge was caused by an order imbalance and sought to assuage concerns about claims of manipulation in the index.

One in Five Big Financial Institutions Are Getting Ready to Trade Crypto – Quartz

Around one in five institutional financial firms have plans to start buying and selling digital tokens within the next 12 months, according to a survey by Thomson Reuters.

Bitcoin Rival Accused of Trying to Artificially Boost Its Price – Bloomberg

Antpool claims to have started burning 12 percent of fees.

Market Savvy

Mexican Peso Skids Towards 19 Per Dollar Mark – Financial Times (subscription)

The currency fell for a fifth consecutive session, sliding as much as 2.1 per cent to hit a seven-week low of MXN18.91 per dollar as rising US bonds yields and jitters over this summer’s presidential elections combined to sap investors’ appetite for the peso.

EM Assets Thumped as US Yields, Dollar Rise – Financial Times (subscription)

Most notable is the drop in one broad measure of EM currencies, which is facing its biggest drop in almost a year.