Top Headlines

‘Reigning Supreme’: Euro Edges Up to New 14-Month High Ahead of Yellen Testimony – Financial Times (subscription)

The euro has climbed to its highest intraday level against the dollar in more than 14 months ahead of congressional testimony from US Federal Reserve chair Janet Yellen.

Dollar Pressured by Trump Jr. Emails, Focus on Yellen Testimony – Reuters

The dollar wobbled in early Asian trading as investors, already wary ahead Federal Reserve Chair Janet Yellen’s testimony, digested emails released by President Donald Trump’s eldest son suggesting he welcomed Russia’s help in last year’s election campaign.

Wage Data Soothes Sterling as Brexit Cracks Widen – Reuters

Slightly better than expected wages and jobs data saved Britain’s pound from another plunge lower, offsetting a series of political and economic warning signs as talks on leaving the European Union get going in earnest.

Plenty of Reasons for Traders to Bet Against the Japanese Yen – Financial Times (subscription)

Divergence in monetary policy between Bank of Japan and peers spurs forex selling.

Derivatives Costs to Rise If Euro Clearing Moved from London: ICMA – Reuters

The cost of using financial derivatives is likely to increase if euro-denominated clearing is relocated from London to the European Union after Brexit, trade association ICMA said.

HSBC, UBS Settle US Rate-Rigging Litigation; 10 Banks’ Total Payout Tops $408 Million – Reuters

HSBC Holdings and UBS Group have each agreed to pay $14 million to settle private US litigation accusing them of rigging an interest rate benchmark used in the $483 trillion derivatives market.

No Systemic Risk from Cryptocurrency Speculation: BlackRock Strategist – Reuters

BlackRock’s global chief investment strategist suggested that loose monetary policy may have aided speculation in digital currencies like bitcoin, but he said the risk to the broader financial system appears limited.

Regulatory News 

Sources: Cohn is Trump’s Top Candidate to Replace Yellen at Fed – Politico

If National Economic Council Director Gary Cohn decides he wants the job, he is likely to get it, sources close to the process said.

Warren Slams Trump’s Fed Banking Watchdog Pick as ‘Dangerous’ – Financial Times (subscription)

Donald Trump’s pick to be the Federal Reserve’s regulatory chief has been slammed as “dangerous” by Senator Elizabeth Warren, a leftwing firebrand.

CFTC Continues Developing FinTech Initiative with Its New Hire – Profit & Loss

Christopher Giancarlo, the acting chairman of the US Commodity Futures Trading Commission (CFTC), has appointed Daniel Gorfine to serve as director of LabCFTC and chief innovation officer, effective immediately.

Volcker Rule Reflects Challenge Ahead for a Fed Nominee – The New York Times

The Volcker Rule is emblematic of the challenge facing the latest Federal Reserve nominee.

Clearing Firms Simulate Lehman-Like Default During Brexit Chaos – Bloomberg

The first coordinated global test showed clearinghouses, the firewalls protecting the financial system from calamity, are strong enough to survive a major bank going bust.

Company News

Nex Revenues Boosted by China FX Deal – Financial Times (subscription)

Nex Group reported a 10 per cent rise in first quarter revenues, reliant on its market infrastructure business as low market volatility crimped turnover from trading.

Banks Begin London Exodus as Hopes of Transitional Deal Fade – Reuters

Britain may have left it too late to convince major banks that it can strike a deal to soften the impact of Brexit before they start shifting jobs from London.

Special Report: How Brexit Is Set to Hurt Europe’s Financial Systems – Reuters

Interviews with scores of senior executives from big British and international banks, lawyers, academics, rating agencies and lobbyists outline some of the dangers for companies and consumers from potentially losing access to London’s markets.

Ex-Credit Suisse Trader Raises $66 Million for Bitcoin Push – Bloomberg

Former Credit Suisse Group trader Nikolay Storonsky is getting $66 million from investors including Index Ventures to help expand his business offering banking services and add cryptocurrency exchange for customers.

Market Savvy 

Asia Currencies Strengthen Ahead of Yellen Testimony – Financial Times (subscription)

Major Asia Pacific currencies firmed against the dollar in morning trade ahead of US Federal Reserve chair Janet Yellen’s semi-annual testimony to Congress.

Crown Firms on CPI Data, Dinar Hits 21-Month Highs – Reuters

The Czech crown firmed leading cautious currency gains in Central Europe, after June inflation figures fuelled expectations that the Czech central bank will hike interest rates for the first time in almost a decade before long.

C$ Eases Ahead of Bank of Canada Rate Decision – Reuters

The Canadian dollar retreated against its US counterpart ahead of an expected interest rate hike by the Bank of Canada.