Top Headlines

Ex-HSBC Trader Says Client Got ‘Fair’ Price in Currency Deal – Bloomberg

Former HSBC Holdings currency trader Mark Johnson took the witness stand, insisting that he cheated no one in a $3.5 billion foreign-exchange transaction.

Dead Cat Bounce? The Dollar’s Rebound Runs Out of Steam – Financial Times (subscription)

The dollar has come under pressure for the fifth day in a row, halting a rebound amid dimming enthusiasm over tax reform and an easing in European political uncertainty. 

FX Traders’ $2.2 Trillion Dream Actually Closer to $456 Billion – Bloomberg

Dollar bulls may be disappointed if they’re pinning their hopes on Republican proposals that could clear the way for US companies to repatriate profits stashed overseas, according to JPMorgan Chase.

Economy Bets Push Euro Up for a Fifth Day – Reuters

The euro climbed to a two-week high after a slew of strong data that supported a growing view that the European Central Bank will announce a plan to wind down its huge stimulus plan at a policy meeting later this month.

Sterling Rises Against Weaker Dollar Despite Brexit Worries – Reuters

Sterling edged higher against a tepid dollar, despite a backdrop of uncertain Brexit negotiations.

Light Trading Volume Seen as Black Spot in Banks’ Results – Reuters

Trading volume for fixed income, currencies and commodities (FICC) was also hurt by weak volatility in the quarter.

Who Do We Blame If the Machine Goes Rogue? – Profit & Loss (subscription)

Firms are looking at “AI” and ‘machine learning” and, in some cases (not many) actually deploying it.

Alpha Macro FX Traders Should’ve Just Been Beta – Bloomberg

Macro investors seeking to beat basic currency strategies are having a horrible year.

Should Individuals Invest in Bitcoin? In a Word, No – Wall Street Journal (subscription)

Financial advisers say that despite the temptation, the market and regulatory risks are too great.

Regulatory News  

CFTC to Delay Decision on Swap Dealer Registration Threshold – Wall Street Journal (subscription)

Threshold was set to be lowered to $3 billion in notional value from $8 billion starting in 2018.

Global Regulators Close to Final Deal on Bank Capital: Sources – Reuters

Global banking regulators are close to a final deal on capital rules that aim to ensure banks can withstand financial shocks, with Europe and the United States set to compromise on a major sticking point, banking and regulatory sources said.

Mnuchin Pushing Trump to Pick Jerome Powell for Fed – Politico

Powell, a current Federal Reserve governor, is seen as a safe choice for the most powerful economic job in the US.

House Panel’s Dodd-Frank Tweaks Won’t Add Up to ‘a Big Number’ – Bloomberg

President Donald Trump promised to do “a big number” on the Dodd-Frank Act. But a slate of bills House Republicans will take up shows how difficult it is to get anything big through Congress these days.

US Finance Industry Bemoans ‘Massive Headache’ of Mifid II – Financial Times (subscription)

Finance trade bodies worry the SEC has been too slow in responding to new European rules.

Global Regulators Play Bitcoin Whack-a-Mole as Demand Explodes – Bloomberg

Regulators worldwide are finding that it’s incredibly hard to control the explosive growth of money tied to no nation.

Company News

State Street Reshuffles Senior FX Staff – Profit & Loss

State Street is reshuffling senior FX staff, with James Reilly being appointed as the global head of Currenex and Beverley Doherty as global head of FX Connect.

FXecosystem Unveils FX-VPS – Profit & Loss

FXecosystem has launched its FX-VPS – a cloud-based Virtual Private Servers (VPS) offering for the financial markets.

CME, Linchpin of Chicago Finance, Says It’s Not Tied to the City – Bloomberg

CEO Duffy notes exchange is based there for ‘legacy reasons’.

Market Savvy

Yuan Dips as Companies Step Up Dollar Buying – Reuters

China’s yuan eased against the US dollar amid by heavier corporate demand for the greenback, traders said.

Emerging Stocks at New Six-Year High, Currencies Firm on Fed Doubts – Reuters

A retreating dollar, solid commodity prices and new record highs for world stocks helped extend the rally in emerging markets, with stocks at new six-year highs and currencies firming almost across the board.

New Zealand Dollar Tipped to ‘Break Out’, Shape of Next Government Might be the Trigger – Pound Sterling Live

The New Zealand Dollar remains consolidative but a notable directional move is possible with the announcement of a new Government likely on Saturday.