New GFXC Chair Debelle on the Impact of the FX Global Code – Profit & Loss

As he assumes the reins of the Global FX Committee, Reserve Bank of Australia deputy governor Guy Debelle talks to Colin Lambert about the impact of the FX Global Code and the importance of maintaining momentum as the GFXC seeks to broaden its reach.

The US Will Likely Win in a ‘Cold Currency War,’ Says Pimco – CNBC

The US will likely emerge the winner in a “cold currency war” that’s heating up, according to Joachim Fels, global economic advisor at Pimco.

Trump Fed Pick Shelton Calls for 50-Basis-Point Cut to Interest Rates – Washington Post

Judy Shelton, President Trump’s intended nominee to fill an open seat on the Federal Reserve Board, is calling for a large interest rate cut at the Fed’s July meeting.

Trump, Congress Leaders Reach Deal on Debt Limit, Spending Caps – Reuters

President Donald Trump and US congressional leaders reached a deal on Monday on a two-year extension of the debt limit and federal spending caps that would avert a feared government default later this year but add to rising budget deficits.

US Trade Negotiators Likely to Visit China Next Week for Face-to-Face Talks – South China Morning Post 

US negotiators led by trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are likely to fly to China next week for the first face-to-face talks since President Xi Jinping and US counterpart Donald Trump agreed to a trade war ceasefire at the end of June, according to a source who is familiar with the matter.

Duncan Quit as UK Foreign Minister After Plot to Persuade the Queen to Reject Johnson as Next PM – Daily Telegraph

In an extraordinary move, Sir Alan Duncan quit as foreign minister after hatching a plot to persuade the Queen to reject Boris Johnson as the next Prime Minister. 

Do Not Treat the IMF as an EU Consolation Prize (opinion) – New Zealand Herald

Once again the EU is insisting on a European candidate for the job of managing director of the IMF.

Gold Holds Six-Year High on Federal Reserve Rate Cut Expectations – Financial Times

Gold has held near a six-year high, buoyed by global economic fears and a widely anticipated rate cut from the US Federal Reserve.

Regulatory News

Brexit Boom in Currency Hedges Sparks Fears of Mis-Selling – Financial Times

The tumbling pound is encouraging nervous UK importers to enter into complex currency transactions as they scramble to avoid higher costs. But some consultants warn those deals could expose them to significant losses.

Trade Local, Manage Global – ISDA

ISDA is a big supporter of a globally consistent, risk-based regulatory framework. Unfortunately, it hasn’t always worked out like that.

CFTC, FinCen, Clarify Customer Identification Program and Beneficial Ownership Obligations of Introducing Brokers – CFTC

TheCommodity Futures Trading Commission’s Division of Swap Dealer and Intermediary Oversight, in conjunction with the Financial Crimes Enforcement Network, have issued interpretive guidance to introducing brokers in commodities that do not “introduce” customers to a futures commission merchant that carries their customers’ accounts. 

EU to Scrap Financial Market Access for Some Countries in Brexit Warning Shot – Reuters

The European Union is set to block some countries from accessing parts of the bloc’s financial market for the first time, an EU document seen by Reuters showed, a step that will ring alarm bells in Britain in the run up to Brexit.

Crypto News

Crypto Market Leaders Differ on Pace of Inst Adoption. Who’s Right? – CCN

Many investors assume that institutional money has finally arrived in crypto and these big financial firms are the ones powering bitcoin’s recent ascent, however, Binance CEO Changpeng Zhao, popularly known as CZ, believes otherwise.

Iran Legalises Crypto Mining – Coindesk

Iran is officially recognising cryptocurrency mining as an industry within its borders.

The Great Crypto Heist (opinion) – Australian Financial Review

It is no surprise that an unregulated market has become the playground of con artists, criminals, and snake-oil salesmen.

FINRA Extends Deadline for Firms to Report Crypto Activity – Coindesk

Amid the kerfuffle last week over Facebook’s Libra cryptocurrency project and its potential regulation, the US Financial Industry Regulatory Authority quietly extended its deadline for firms to report their crypto activity.

Company News

Standard Chartered Joins Digital Vega – Profit & Loss

Standard Chartered Bank has become a liquidity provider on Digital Vega’s FX options Medusa trading platform, bringing its unique global footprint of actively trading in over 100 currencies and pricing a range of emerging markets and G10 currencies. 

Tighter Rules Hammer IG Group’s Annual Profit – Reuters

Online trading platform IG Group Holdings on Tuesday reported a slump of almost a third in its earnings for the year, hurt by Europe’s clampdown on the provision of access to high-stakes financial betting to amateur traders.

Sheffield University to Offer UK’s First Degree in Derivatives Trading – Financial News

One of the UK’s largest independent trading houses has teamed up with Sheffield Hallam University’s business school to launch a course designed to educate the next generation of market traders.

Wu Joins Credit Agricole – Profit & Loss

Patrick Wu has joined Credit Agricole as head of EM Asia FX and rates trading.

Market Savvy

ECB Can Boost Growth Across Europe by Buying Stocks (opinion) – Financial Times

A spectre of anaemic growth is haunting Europe. More than 10 years after the global financial crisis, the unemployment rate in the US has recovered to reach its lowest level in nearly 50 years, however, such a reduction has not been replicated in Europe.

We’re Not Targeting Unemployment Rate: RBA’s Kent – Australian Financial Review

The Reserve Bank of Australia disputes that it is targeting the unemployment rate, but one of it top economists agrees it wants to see the rise in joblessness since February reversed.

South Korea Central Bank: Japan’s Export Curbs Among Top Three Economic Risks – Reuters

South Korea’s central bank on Tuesday said Japan’s export curbs on key chip and display production materials were one of the top three risks to the domestic economy even after its recent downgrades to growth projections.

RBNZ to Refresh Unconventional Policy Strategy – Scoop NZ

In response to an Official Information Request from Bloomberg, the RBNZ has stated they are taking another look at its strategy for unconventional monetary policy.

Brexit Divides Bank, Asset Manager FX Positions: CME data – FOW

They appear to be on opposite sides of the Boris Johnson trade, CME’s Erik Norland says.