Top Headlines

Renminbi Slides After China Relaxes Currency Controls – Financial Times (subscription)

Sharpest drop in three months after central bank orders lenders to scrap two rules.

Dollar Bounces as Risk Appetite Returns – Reuters

The dollar edged higher, after posting its biggest weekly drop in two months, as a revival in interest in riskier assets prompted some investors to cut short bets against the greenback before US inflation data this week.

US Short Dollar Bets Largest Since Jan 2013: CFTC, Reuters – Reuters

Speculators’ net short bets on the US dollar grew to their highest since January 2013 in the latest week, according to calculations by Reuters and Commodity Futures Trading Commission data.

BoE Expectations Help Pound Recover vs. Euro – Reuters

Sterling rose to a three-and-a-half-week high against the euro, helped by speculation that the Bank of England may sound more hawkish on interest rates this week in defense of the currency.

Analysts See One Chance in Four Sterling Will Reach Parity with Euro in Next Year: Poll – Reuters

Sterling stands one chance in four of weakening to parity with the euro in the coming year, according to analysts polled by Reuters this week, but only a few said that was their central forecast.

ECB’s Cœuré Takes a Deep Dive Into the Euro and Inflation – Financial Times (subscription)

The euro and the European Central Bank’s relationship status: It’s complicated.

Italy’s Dual Currency Schemes May Be Long Road to Euro Exit – Reuters

Italy’s main opposition parties are replacing their calls to leave the euro with apparently less radical proposals to flank it with a new currency they say can boost growth and jobs.

Currencies ‘Doing the Dirty Work’ for Central Banks, Says HSBC – Financial Times (subscription)

Who needs central banks when you can have freely floating currencies instead? That’s the question posed by HSBC.

UK’s Bid to Retain Euro Clearing After Brexit Gains EU Allies – Bloomberg

The UK has gained potential allies in its bid to hold on to the business of clearing euro-denominated derivatives after Brexit.

London Stays World’s Top Finance Center Despite Brexit – Reuters

London remains the globe’s most attractive financial center, extending its lead over New York despite Britain’s looming departure from the European Union, a survey found.

Bears Target Ways to Bet on Cryptocurrency Mania Imploding – Financial Times (subscription)

Short sellers await arrival of bitcoin futures that will introduce two-way trading.

Is Bitcoin a Nightmare Waiting to Happen? – Profit & Loss (subscription)

Buy and hold it – maybe. But trading it? I am less sure.

Regulatory News

ITG Executive Jamie Selway Withdraws as Candidate for Top Regulatory Role – Wall Street Journal (subscription)

His hiring had been subject to a long delay.

Europe’s Bank Regulators on Expensive Hiring Spree Before Brexit – Reuters

Europe’s regulators are competing to hire risk specialists to prepare for an influx of banks escaping Brexit, nudging up salaries and stretching staff budgets.

China to Shut Bitcoin Exchanges – Wall Street Journal (subscription)

Authorities to ban commercial trading of all virtual currencies.

Russia Makes U-Turn on Cryptocurrencies After Backing from Putin – Bloomberg

Russia is drawing up rules about how to conduct initial coin offerings, breaking ranks with China after President Vladimir Putin signaled his approval for digital currencies.

Company News

GTX Launches Full Amount Streams – Profit & Loss

Gain Capital’s GTX has launched full-amount streams on its ECN platform.

Blockchain Developers Face Off Over $1 Billion in Digital Cash – Bloomberg

Two of the world’s largest blockchain developers are battling over more than $1 billion in virtual-currency options, in a dispute that may help establish the leading player in providing new payment technologies to financial companies.

US Brokers Sees Largest Fall in Two Years – FOW (subscription)

Nine out of the ten biggest FCMs in the US reported a decline in customer assets under seg in July.

Schwarzl Exits Standard Chartered: Heading to UBS? – Profit & Loss

Profit & Loss understands that Rene Schwarzl has left Standards Chartered Bank in Singapore where he was director, global macro sales.

Avelacom Partners with Metamako – Profit & Loss

Connectivity provider Avelacom is using Metamako, the specialist provider of FPGA-enabled, high-performance networking devices, to accelerate its network processing power and keep latency to an absolute minimum.

Market Savvy

Havens Lose Lustre as North Korea Missile Test Fears Subside – Financial Times (subscription)

Investors had been bracing for North Korea to test a missile to mark the country’s founding day over the weekend, but Pyongyang opted instead to hold a celebration.

Yen, Gold Weaken After Quiet Weekend from North Korea – Financial Times (subscription)

Havens including Japan’s yen and gold were softer and the dollar was gaining in Asia after the weekend passed without another missile or nuclear weapons test by North Korea.

CEE Markets: Currencies Steady, August Inflation Data Fail to Boost Czech Crown – Reuters

Central European currencies were steady, with the Czech crown unmoved by August inflation data, which was in line with analysts’ expectations and stayed above the central bank’s target.