Top Headlines

Euro ‘Unchallenged’ as Second Currency, ECB Says, But Still Far from Top Slot – Financial Times (subscription)

The euro remains far from achieving one of the chief aims of its political founders: to challenge the dollar as the sole global currency.

Dollar Goes Higher Against Yen, Flat vs. Euro – Reuters

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 Dips Ahead of UK Services Data – Reuters

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.

Yen Firms Past ¥113 Per Dollar After South Korea, US Hold Joint Drill – Financial Times (subscription)

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.

Mixed Results from FX Platforms – Profit & Loss

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.

The FX Global Code: Now the Hard Work Begins – Profit & Loss (subscription)

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.

Regulatory News

Basel Committee Sees Reform Progress – Profit & Loss

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.

Global Regulators Say ‘Shadow Banking’ Market Has Been Tamed – Financial Times (subscription)

Financial Stability Board chair Mark Carney insists ‘faultlines’ now fixed.

Labor Department Seeks More Input on Fiduciary Rule – 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.

Finra Makes Up for 2016 Operating Revenue Hit with Big Increase in Fine Income – Investment News

Broker-dealer self-regulator reports that fines increased to $173.8 million in 2016, up from $93.8 million in 2015.

Company News 

US Banks’ Quarterly Trading Revenue Up 26% – Wall Street Journal (subscription)

Office of the Comptroller of the Currency report shows falling risk for bank derivatives.

Former FCA Head Tracey McDermott Joins New Banking Lobbying Group – Financial Times (subscription)

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.

The 45-Millisecond Ether Flash Crash Prompts Safeguard Effort – Bloomberg

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.

Market Savvy

LatAm Stocks, Currencies Flat as US Holiday Curbs Trading – Reuters

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 Stocks Bounce, Currencies Weaken Ahead of Fed Minutes – Reuters

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.

Zloty Eases, Polish Central Bank Seen Keeping Loose Policy – Reuters

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.