Top Headlines
Global FXC Names Leadership Team, Reports on Progress – Profit & Loss
The Global Foreign Exchange Committee (GFXC) has named Simon Potter executive vice president of the Federal Reserve Bank of New York, as chair for a one-year term.
Dollar Slips After Rally – Wall Street Journal (subscription)
The dollar edged lower as some investors locked in gains on a rally that has taken the US currency to its highest level in a year.
Dollar, Policy and Politics Shape Market Winners and Losers – Financial Times (subscription)
The strengthening US dollar, tightening monetary policy and widening geopolitical risks have shaped the winners and losers in investors’ portfolios in the first half of 2018.
Sterling Rises Before British GDP Data Release – Reuters
The pound rose against the dollar as traders waited for the release of final British economic growth numbers for the first quarter, which if revised higher could lift falling expectations of monetary policy tightening later in the year.
Euro Rallies After EU Leaders Reach Deal on Migrants – Financial Times (subscription)
The euro led broad gains against the dollar on Friday after EU leaders reached a major deal on how to handle the flow of migrants into member countries.
China’s Yuan Staring at Worst Month Ever as Trade War Threatens to Knock Economy – Reuters
After a sharp sell-off China’s yuan and stock markets attempted a modest recovery, yet investors were grappling with some of their worst losses in years as a bitter Sino-US trade row threatened to ruffle the world’s second-biggest economy.
- Rattled Investors Seek Protection Against Yuan Swings – Wall Street Journal (subscription)
- Magnus Sees Yuan Sliding to 2008 Low as China Policy Shifts – Bloomberg
Asia-Pacific Currencies Trounced in June as Trade Fears Take Hold – Financial Times (subscription)
Asia-Pacific currencies dropped virtually across the board in June as fears rose over the impending hit to economic growth from a US-China trade war.
FX: Institutional Trading Restrictions Limit Risk Mitigation, Research Suggests – Euromoney
The flexibility of any response to a big market event is too restricted, especially by narrow trading hours for 24-hour markets.
Using Data to Generate Alpha Signals – Profit & Loss (subscription)
Charles Ellis, a trader and quantitative strategist at Mediolanum Asset Management, explains how data can be used to help generate alpha signals.
Regulatory News
Deutsche Bank Fails Fed Stress Test While Three US Lenders Stumble – Reuters
Deutsche Bank’s US subsidiary failed the second part of the US Federal Reserve’s annual stress tests due to “widespread and critical deficiencies” in the bank’s capital planning controls.
- Fed Test Slaps Wall Street Titans While Unleashing Record Payout – Bloomberg
- Bank Stress Tests Don’t Instill Confidence – Wall Street Journal (subscription)
US Regulators Strengthen Ties with New Agreement – Waters Technology (subscription)
The agreement, which updates the previous MoU from 2008, focuses specifically on coordinating the efforts of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in implementing Title VII of the Dodd–Frank Act, which governs derivatives trading.
Crypto News
UK Banks Warned Not to Get Caught With Pants Down on Crypto – Bloomberg
The Bank of England warned UK lenders to do their homework before diving into the business of crypto currencies.
If Fund Managers Back Bitcoin – The New York Times
If all the hedge funds and family offices out there decided to commit a fraction of that capital to a diversified portfolio of cryptocurrencies, they may double the size of the sector.
Wall Street Needs to Solve Crypto Custody – Markets Media
Some digital-asset exchange like Gemini do offer custody services, but the larger and more traditional asset managers have shied away from taking advantage of them.
Company News
Barclays Looks to “Digitise” Business – Profit & Loss
Barclays announced three senior appointments that it says will help to digitise its markets business.
LCH Begins Clearing Mexico-based Trades – Profit & Loss
LCH is now actively clearing trades on behalf of a Mexico-domiciled participant.
Stater Adds New Compliance Head – Profit & Loss
Simon Henry has been appointed by Stater Global Markets as head of compliance.
MahiFX Unveils MFX Echo – Profit & Loss (subscription)
One of the bigger trends in the FX industry in recent years has been an increased focus on execution quality.
Market Savvy
Mexican Peso Clocks Best Day in 15 Months – Financial Times (subscription)
The Mexican peso led the rally in emerging markets currencies, climbing by the most in over a year as the country gears up for a historic presidential election on Sunday.
India Hopes to Cut Losses from Rupee Fall with Reserves ‘Firepower’ – Reuters
India believes the current slide in the rupee will not be prolonged as it has adequate “firepower” of foreign exchange reserves to deal with the current volatility, a senior finance ministry official said.
Odds of Bank of Canada Rate Hike Climb After Poloz’s Remarks – Bloomberg
Investors are raising bets the Bank of Canada will move ahead with an interest rate hike next month, after Governor Stephen Poloz reiterated his outlook for higher borrowing costs.