Interest Rate Risk Helps Steady FX Volumes – Profit & Loss

Although spot FX markets have been characterised as existing in a very low volatility and volume environment, the same cannot be said for the interest rate space, and that has enabled FX volumes to remain steady over the past year according to data from six regional FX committees.

Boris Johnson Goes to Work as Prime Minister – The Times

Boris Johnson will promote Priti Patel to the top of government today as he builds a cabinet to sell an optimistic vision of Brexit to “modern Britain”.

Bank of England Chief Economist Warns Boris Johnson not to Expect Rate-Setters to Rescue Economy – Daily Telegraph

The Bank of England’s chief economist has warned the new government not to expect the “monetary cavalry” to ride to the rescue if the economy flounders.

ECB Meet Thursday, Rate Cut Coming? What Would Draghi Do? – Forex Live

The European Central Bank meet Thursday. On balance, expectations are the Governing Council will keep policy on hold, the market pricing is 35% for a cut (actually a touch higher than 35), so it’s not negligible by any means.

How Artificial Intelligence Has Changed the Forex Trade – Aithority

The use of Artificial Intelligence is limitless. It has already impacted almost any segment of our lives.

Eurozone Business Growth Stalls in July, Outlook Darkens: PMI – Reuters

Euro zone business growth was much weaker than expected this month, hurt by a deepening contraction in manufacturing, and forward-looking indicators in surveys published on Wednesday suggest conditions will get worse next month.

Regulatory News

Basel Committee, IOSCO Agree to One Year Delay on Margin Rules – Profit & Loss

The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have announced a one-year delay to the final phase of the implementation of the margin requirements for non-centrally cleared derivatives.

Banks Appeal Against South African Tribunal’s Forex Decision – Global Competition Review

Several banks targeted in South Africa’s probe of foreign exchange benchmark manipulation have challenged part of a Competition Tribunal ruling that found the court can issue an infringement order against certain banks – despite also finding it has no jurisdiction to fine those banks.

Department of Justice Opens Review into Big Tech’s Market Power – Financial Times

The US Department of Justice announced a broad antitrust investigation into the leading online platforms, raising the stakes in Washington’s scrutiny of Big Tech’s power over growing parts of the economy.

American Express to Refund $1.6 Million After Foreign-Exchange Pricing Probe – Wall Street Journal

American Express Co. is terminating foreign-exchange employees and refunding money to nearly 200 customers after it found salespeople misrepresented pricing to customers.

UBS CEO Warns of ‘Dangerous’ Bubbles Spurred by Central Banks – Bloomberg

UBS Group AG’s chief executive officer is sounding the alarm on fresh monetary easing just as European policy makers appear poised to deliver another helping to stimulus-hungry markets.

Crypto News

Bitfinex, Tether Bid Once Again for NY AG Matter Dismissal – Law360

The matter against Bitfinex and Tether brought by the New York attorney general must be dismissed over lack of jurisdiction, the companies reiterated in the last round of filings.

The Crypto Buffett Lunch has been Postponed. Lucky Warren Buffett. – Financial Times

On Thursday, the famously crypto-sceptical Warren Buffett was due to lunch with a bunch of crypto bros.

Bitcoin Plummets, Alts Follow – FXStreet

Bitcoin plummetted below $10,000 and the rest of the top three had to lick their wounds as well.

Senate Banking Committee to Hold Hearing on Crypto Regulation – Coin Desk

The Senate Banking Committee will hold a hearing on regulatory frameworks for cryptocurrencies and blockchain next week.

Company News

Hermes Looks to Northern Trust for FX Services – Profit & Loss

Northern Trust has announced it has been appointed by Hermes Investment Management to provide currency management services for its Irish fund range.

Deutsche Bank Suffers $3.5 Billion Quarterly Loss – Reuters

Deutsche Bank reported a bigger than forecast quarterly loss of 3.15 billion euros because of major costs stemming from its efforts to reshape its business.

Union Investment Starts Trading Eurex FX Futures – Profit & Loss

European asset manager Union Investment has started trading Eurex FX futures after the firm says it saw “growing traction in the product as part of their overall FX portfolio strategy”. 

Hall New Global Head of Macro Trading at StanChart –Profit & Loss

Standard Chartered Bank has unveiled Tony Hall as its new global head of macro trading, financial markets.

Market Savvy

China is Wise to Boost its Gold Reserves as a Weaker US Dollar Looms and Currency Wars Beckon – South China Morning Post

China’s central bank is piling into gold, the traditional safe haven, as bond yields go negative and the US considers ditching its ‘strong dollar’ mantra, potentially igniting currency wars

How the RBA Can Escape the ‘Low Rate Trap’ – Australian Financial Review

The Reserve Bank appears destined to join the rest of the developed world in a race to the bottom. There are alternatives, but little appetite to pursue them.

‘One-Trick Pony’? Australian Exports Zoom Despite Global Trade War – Reuters

Most world economies from Germany to Japan are bearing the brunt of an interminable U.S.-China trade war but one country that has been insulated from the blow so far is Australia, which is rolling in record export dollars.

ECB Easing Lines Up Swedish Krona for More Pain – Financial Times

The pound is not the worst-performing developed market currency this year, despite the glut of gloomy headlines surrounding Brexit. That unenviable position belongs to Sweden’s krona.