Top Headlines

Pound Falls Fast After Theresa May No-Confidence Report – Financial Times (subscription)

The pound fell sharply following weekend reports that 40 Conservative MPs had agreed to sign a letter of no confidence in Theresa May, UK prime minister, and Eurosceptic cabinet ministers pushed her to take a tougher line on Brexit.

May’s Troubles Prompt Some Investors to Examine Corbyn – Financial Times (subscription)

It is another variable for UK markets to juggle alongside the shape of any Brexit deal, whether the Bank of England really is at the start of a tightening cycle and the state of the economy.

Dollar Gains Broadly as Yields Support; Sterling Crumbles – Reuters

The dollar edged higher as last week’s spike in US bond yields supported the currency, with sterling – battered by political headwinds – the biggest loser.

NBIM Calls for Greater Transparency and Veriability in FX Markets – Profit & Loss

The latest Asset Manager Perspective, published by Norway’s sovereign wealth fund Norges Bank Investment Management (NBIM), highlights the “significant achievement” of FX markets in becoming the most liquid in the world, but argues the solutions developed by the industry have also tended to exacerbate the informational advantages enjoyed by dealers.

Deutsche Bank Chief Questions EU’s Clearing Quest – Financial Times (subscription)

Cryan says he cannot understand why industry has become such a battleground.

US Banks’ ‘Stop Gap’ Brexit Plans Set to Retain London Jobs– Financial Times (subscription)

Citigroup among those looking to ‘branch-back’ by using EU offices.

Broker TP Icap Wins Partial Victory in EU Courts – Financial Times (subscription)

Luxembourg strikes down one charge against broker over cartels in interbank markets.

Data: The Lifeblood of the FX Market – Profit & Loss (subscription)

Probably the biggest change in the FX market over the past 10 years has been the availability of data.

A Starbucks Coffee Costs What? – Wall Street Journal (subscription)

With a tall latte costing $1.53 in Cairo and $5.76 in Zurich, prices suggest some currencies are overvalued against the dollar and some are undervalued.

Regulatory News

CFTC Head to Meet with Regulators on Asian Trip – Wall Street Journal (subscription)

Cross border trading rules in focus as J. Christopher Giancarlo travels to Hong Kong and Singapore.

Trump Administration to Bankers: You’re Not the Villain Anymore – Wall Street Journal (subscription)

Financial regulators, some of them longtime bankers, now sound friendlier tone.

European Regulator Latest to Warn on Initial Coin Offerings – Financial Times (subscription)

The EU’s financial watchdog has issued a warning on the risks of initial coin offerings for investors and given new guidance for companies involved in offering the instruments.

At the SEC, Whistleblowers Blow Whistle on Watchdog – Wall Street Journal (subscription)

Officials working for the SEC inspector general have filed complaints alleging retaliation for calling out misconduct in the office.

Company News

Buy Side Awaits FICC Research Costs – Markets Media

The majority of asset managers intend to pay for research in fixed income, currency and commodities themselves but nearly half are still waiting for an approach from their FICC research providers.

CME Signs Seven Participants to Clear OTC FX NDFs – FOW (subscription)

The move comes in response to uncleared margin rules that are driving costs for clients.

There Were More Than 26,000 New Blockchain Projects Last Year – Only 8% Are Still Active – CNBC

It is one of the fastest growing technologies around, but the majority of blockchain projects are abandoned within months, according to researchers.

Bitcoin: The World’s Most Dramatic Bubble Ever? – Wall Street Journal (subscription)

Investment manias throughout the centuries have ranged from tulips to tech stocks to housing; is bitcoin different?

Market Savvy

Asian Currencies Subdued by Uncertainty Over US Tax Reform Plans – Reuters

Most Asian currencies were subdued as uncertainty about US President Donald Trump’s tax reform plans checked investor enthusiasm.

Rouble Up as Oil Heads Higher; Gains Capped by FX Debt Repayment – Nasdaq

The rouble firmed slightly thanks to higher oil prices but gains were limited by demand for dollars related to foreign debt repayments.

Bitcoin Shorts Retreat in Sign Selling Pressure Could Be Easing – Bloomberg

Bearish investors in bitcoin have started to cover their short positions, suggesting selling pressure may be waning after concern over the cryptocurrency’s future wiped out some $38 billion in value in the past week.