Greece Votes “No”: Markets React Calmly, Eye China – Profit & Loss (free story)
Greece’s historic referendum on whether to accept the terms of a new bailout has voted ‘no’ by a wider than expected margin. With all votes counted, the ‘no’ vote had achieved a 61.3% share, higher than the 55-58% predicted at the end of last week.
JP Morgan-Barclays Cut Greek Exit Odds as Goldman-Citi Hold – Bloomberg
Economists from JP Morgan Chase to Barclays made a Greek departure from Europe’s monetary union their base scenario, while those at Goldman Sachs and Citigroup saw ways it can remain within the bloc.
Brazil Wades into FX Scandal – Profit & Loss (free story)
A total of 15 of the world’s largest banks are being investigated on suspicion of manipulating the Brazilian currency, Brazil’s financial watchdog Cade has announced.
What the Brazilian Probe Tells Us – Profit & Loss (subscription)
Whilst it is easy to look at events in Brazil and see this as another country seeing the opportunity to boost government coffers at the expense of the bottomless pit they perceive the banks to be, there is something different about the Brazilian FX market.
Holder: Big Penalties Changed Bank Culture – Financial Times (subscription)
Eric Holder, the former US attorney general who oversaw the biggest post-crisis financial investigations in history, said the culture of banks improved during his tenure, as he insisted that prosecutors had been right to level “record-setting penalties” against institutions rather than “trying to make examples of people”.
Swiss Franc Pares Greece-Fuelled Gain That Put SNB Under Pressure –Bloomberg
Switzerland’s franc pared a rally in Asian trading for a second successive Monday as traders monitored the reaction of the nation’s central bank to gains in the currency.
Volumes Heat Up on Exchanges in June – Profit & Loss (free story)
Foreign exchange volumes rose last month according to those platforms to report data with only one indicating a decline in activity. Icap’s EBS says average daily volume (ADV) on EBS was $100.8 billion, a 5% increase on May’s level and a 31% leap from June 2014.
Market Participants Braced for Liquidity Crunch – FX Week (subscription)
Liquidity in foreign exchange continues to deteriorate, leading participants in the market to question its ability to withstand a crisis – and the effect that potential shock moves could have on clients, as risks increasingly sit with them.
Best Forecasters of World’s Worst Currency Predicting More Pain –Bloomberg
Brazil’s real is headed for further declines in the next six months if you believe the currency’s three most accurate forecasters.