The euro remains far from achieving one of the chief aims of its political founders: to challenge the dollar as the sole global currency.
The US dollar inched higher against the yen but struggled to make progress against the euro as investors awaited minutes from the Federal Reserve’s latest meeting and US jobs data later in the week.
Sterling edged lower against the dollar as investors awaited a reading of Britain’s dominant services sector which could affect the Bank of England’s shifting stance on whether to raise record low interest rates.
Japan’s yen has strengthened past the ¥113 per dollar mark after South Korean and US armed forces held a joint drill in response to the launch by North Korea of its first intercontinental ballistic missile.
- Yen Gains as Korean Tensions Curb Risk, C$ Near 10-Month High – Reuters
- Nervous Markets Await Next Move After North Korea Claims ICBM Test – Bloomberg
In spite of several spikes in activity during the month, the overall impact on FX volumes in June was minimal with two of the first group reporting seeing a slight increase and two a slight decrease.
Despite two years of intensive work to produce the FX Global Code of Conduct, Chip Lowry, senior managing director at State Street Global Markets and chairman of the Foreign Exchange Professionals Association (FXPA), warns that the hard work in terms of adherence to the Code is just beginning.
The Basel Committee on Banking Supervision (BCBS) has published a report for the G20 leaders at their Summit in Hamburg on 7-8 July updating the leaders on the implementation of Basel III regulatory reforms since the Committee’s last progress report in August 2016.
Financial Stability Board chair Mark Carney insists ‘faultlines’ now fixed.
- Global Regulators Seek Ways to Step Up Oversight of Senior Bank Executives – Wall Street Journal (subscription)
The Labor Department said it is seeking more public feedback on the fiduciary rule, a sign that the retirement-savings regulation could still be revised before it takes full effect.
Broker-dealer self-regulator reports that fines increased to $173.8 million in 2016, up from $93.8 million in 2015.
Office of the Comptroller of the Currency report shows falling risk for bank derivatives.
With about 200 staff based in new offices next to the Bank of England, the organisation will be one of Britain’s most powerful lobby groups.
Last week’s flash crash in the ethereum digital currency prompted the venue where it happened to consider safeguards used in other markets such as stocks.
Latin American stocks and currencies changed little as a US holiday curbed trading volumes, while lower commodity prices weighed on demand for risky assets.
Emerging market stocks bounced after their biggest fall in nearly three weeks but currencies came under pressure ahead of Federal Reserve minutes while investors awaited the latest development on the Qatar crisis.
The zloty eased against the euro ahead of the Polish central bank’s meeting which could underpin expectations for a delay in rate tightening to late 2018.