Top Headlines

Libor Will End in 2021 Says Britain’s Top Financial Regulator – City AM

Financial Conduct Authority (FCA) boss Andrew Bailey said the London interbank offered rate (Libor) will no longer receive the backing of regulators as the industry tries to move to a more reliable marker.

Donald Trump Compounds Dollar’s Woes – Financial Times (subscription)

Donald Trump has become the soft-dollar president, with the US currency hitting the lowest level in more than a year, measured against a basket of foreign alternatives. 

Sterling Steadies Close to Ten-Month High on Bets for Softer Brexit – Reuters

Britain’s pound steadied close to its highest levels in 10 months against the dollar on comments from the finance minister about a transitional leaving deal with the European Union.

Euro’s Rally Is Looking Extreme When You Examine the Technicals – Bloomberg

While it may not be apparent at first glance, the euro is beginning to show signs of peaking.

Swiss Franc Falls for Fourth Day Against the Euro – Financial Times (subscription)

The Swiss franc weakened further against the euro, dropping for a fourth consecutive day to its lowest level since the country’s central bank removed its upper limit at the start of 2015.

Goldman Is Calling the Top of the Aussie Dollar Rally – Bloomberg

Goldman Sachs Asset Management is calling the top of the Aussie rally, selling the currency after it jumped to a two-year high on what the firm sees as unrealistically strong expectations for interest-rate increases by the central bank.

China Says Will Persist with Crackdown on Forex Irregularities – Reuters

China will maintain a crack down on foreign exchange irregularities to ensure stability in the currency market and the broader economy, the country’s forex regulator said, in a sign Beijing will continue to keep a tight leash on capital outflows.

Regulatory News

New COO, Deputy Governor Appointed at BoE – Profit & Loss

Joanna Place has been appointed as COO at the Bank of England (BoE) and Sir David Ramsden has been named as deputy governor for Markets and Banking at the central bank.

CFTC Extends Relief to Non US Swap Dealers – FOW (subscription)

Regulator said extension was for non-US swap dealers that enter swaps with non-US counterparties.

CFTC Nominees Vow to Finish Derivatives Rule, Disagree on Details – Wall Street Journal (subscription)

The three nominees for the Commodity Futures Trading Commission promised to complete a long-delayed rule on position limits in derivative markets, though the two Republicans and one Democrat made clear they disagreed on the specifics.

Mnuchin: Volcker Rule, ‘Too Big to Fail’ Set for Changes – Wall Street Journal (subscription)

The Trump administration is working with bank regulators to roll back post crisis rules, Treasury Secretary Steven Mnuchin, namely the Volcker rule and the system of determining which financial firms are considered “too big to fail.”

Fed Nominee Backs Bank Call for Changes to Stress Tests – Financial Times (subscription)

Randal Quarles attacked by congressional Democrats for being weak on Wall St abuses.

SEC Must Improve How It Protects Against Cyber Attacks: Report – Reuters

Wall Street’s top US regulator needs to improve the way it protects its own computer networks from cyber attacks, according to a new report by a congressional watchdog office.

Company News

TR Updates Trading Desktops Ahead of Mifid II – Profit & Loss

Thomson Reuters (TR) has updated its FXall and FX Trading desktops to ensure clients trading its Multilateral Trading Facility (MTF) will remain fully compliant with the upcoming MiFID II requirements.

NEX Data Delivers IOSCO-Aligned 30-Minute Spot FX Fixings – Finance Magnates

NEX Data now provides the market with a broader offering of timely foreign exchange rates that are independently produced.

Deutsche Bank’s Wrong-Way US Inflation Wager Hurts Trading – Bloomberg

Soured trade contributes to 12% drop in FICC, its biggest unit.

Brexit: £1 Trillion London Fund Management Business Threatened by Latest EU Guidance – Independent

Asset managers in London oversee funds worth €1.2 trillion (£1.07 trillion) in the EU – more than their peers in France, Germany and Italy combined.

Bitfinex Says Miners to Create Chain Called Bitcoin Cash – Reuters

Hong Kong-based digital currency exchange Bitfinex said that a minority of bitcoin miners would be “forking” to create a new version of bitcoin called Bitcoin Cash on August 1.

Market Savvy

Argentina Peso Falls, Reflecting Concerns About Potential Cristina Kirchner Comeback – Wall Street Journal (subscription)

Argentina’s peso slid to its lowest level against the US dollar since it was decoupled from the greenback in 2002, reflecting rising concern about a possible political comeback by former President Cristina Kirchner.

Crown Eases Somewhat Despite Rate Hike Expectations – Reuters

The crown eased slightly with markets scaling back a touch ahead of next week’s Czech central bank (CNB) meeting at which policymakers could deliver its first rate hike in almost a decade.

C$ Gives Back Post-Fed Gains as Greenback Rebounds on Data – Reuters

The Canadian dollar retreated against the greenback after touching a two-year high, as its US counterpart rebounded on a slew of US data that indicated an acceleration in growth during the second quarter.