Top Headlines

It’s Happened: Bitcoin Has a Hard Fork – Profit & Loss

The bitcoin blockchain has officially forked, meaning that a subset of bitcoin miners have started to operate a different software to create a new blockchain, but one that shares a transaction history with bitcoin.

Dollar Steadies, Halting Losing Streak – Reuters

The US dollar was steady, halting a recent losing streak as investors extended an unwinding of short bets on the currency, particularly against the New Zealand and the Canadian currencies.

Charts That Matter: Further Weakness for the US Dollar? – Financial Times (subscription)

This year has not been kind to the US dollar.

Sterling Near 11-Month Highs vs Dollar as BoE Begins Policy Meeting – Reuters

Sterling traded close to 11-month highs against a broadly weaker dollar, as investors focused on a two-day Bank of England meeting that should provide clues on whether interest rates could be hiked in coming months.

Euro’s Big Month Has Chart-Watchers Looking Back to 2010 Levels – Bloomberg

After the euro surged through a critical technical level last week, analysts who study charts to help guide their predictions are looking back to 2010 for perspective on how high it could rise.

Hong Kong Dollar Weakens to January 2016 Low – Financial Times (subscription)

The Hong Kong dollar has fallen to its weakest level since the China-inspired turmoil of January 2016 as abundant liquidity holds down interest rates in the Chinese territory.

Aussie Bulls See Further Rally Toward 85 Cents – Bloomberg

It will take more than just rhetoric to tame Australian dollar bulls as the currency hovers near a two-year high.

Cold Wind in August: Russia’s Rouble – Reuters

So bad can the month of August be for Russians, there is even a Wikipedia page called “August Curse”.

In the FICC of it – The Problem with CTAs Right Now…. – Profit & Loss (podcast)

CTAs have, generally, not been doing well in 2017, judging by the major indices that track their performance.

London Trading Centres Put Brexit Plans Into Action – Financial Times (subscription)

Back-up measures take shape after traders tire of ambiguity about Britain’s future outside EU.

Technology Investments Drive Up Banks’ Costs – Euromoney

For all their boastful talk of becoming technology companies, most banks still run on core systems installed in the 1970s and 1980s.

Regulatory News

Banking Regulator to Take First Step Toward Changing Volcker Rule – Wall Street Journal (subscription)

The national bank regulator is taking a first step toward changing the Volcker rule trading ban, according to people familiar with the matter, as regulators continue behind-the-scenes discussions about revamping the much-criticized regulation.

SEC Hasn’t Quashed Blockchain Innovation. Let’s Keep It That Way – American Banker

In a recent report, the Securities and Exchange Commission stated unequivocally that blockchain-powered digital tokens can be securities.

Will New York Gain from a ‘Hard’ Brexit? – Markets Media

Banks may choose to redeploy resources in Asia or the US if they need to find up to $50bn (€42bn) in extra capital to support new European entities after the UK leaves the European Union.

Company News

Currenex and EBS Mull Venue-Hosted Last Look – FX Week (subscription)

Platforms consider becoming third-party operators of last look to separate the function from liquidity providers.

CME Sees Dollars in Data Sales, But Struggles to Grow – Reuters

CME Group, the world’s biggest exchange operator by market value, is looking to the lucrative business of selling data to boost revenue, spawn new financial products, and change the way many futures contracts trade.

Deutsche Bank Expects to Move 4,000 Jobs to EU After Brexit – Bloomberg

Deutsche Bank envisions shifting almost half its UK positions to the European continent over coming years as the lender’s Brexit plans take shape, people briefed on the matter said.

Industry Wants to Adopt Fintech, But Is Struggling to Do It: Saadon – FX Week (subscription)

Former Traiana co-founder launches Access Fintech to lower the risk and cost of trying new technology.

Market Savvy

New Zealand Dollar Dips 0.5% After Unexpected Q2 Employment Fall – Financial Times (subscription)

The New Zealand dollar fell half a per cent against its US counterpart after second-quarter employment came in lower than expected.

Czech Crown Steadies as Investors Ponder Rate Hike Chances – Reuters

The crown steadied near one-month lows reached in overnight trade against the euro due to positioning ahead of a likely interest rate hike at the Czech central bank’s meeting on Thursday.

C$ Weakens as Oil Weighs, Greenback Stabilizes – Reuters

The Canadian dollar lost ground against its US counterpart as oil prices fell from a two-month high, while the greenback stabilized a day after being pressured by political turmoil in Washington.