Top Headlines

Renminbi Slips to 11-Month Low as Pressure Persists – Financial Times (subscription)

China’s renminbi pushed past the Rmb6.7 per dollar mark for the first time in nearly eleven months as downward pressure seen during a record monthly drop in June showed no sign of dissipating in July.

Major State-Owned Chinese Banks Seen Selling Dollars to Support Yuan: Sources – Reuters

Major state-owned Chinese banks were seen swapping yuan for dollars in forwards and immediately selling them into the spot market to prop up the Chinese currency, four traders said.

Dollar Consolidates Gains After Rising Three Straight Months – Reuters

The dollar consolidated gains after three consecutive months of gains as investors waited for minutes of the US Federal Reserve’s June meeting and jobs data that should confirm whether policymakers will raise interest rates twice this year.

Sterling Holds Gains After Survey Shows UK Construction Recovery – Reuters

The pound rose as a rebound in risk appetite supported sterling and after a survey showed Britain’s construction industry enjoying its fastest growth in June in seven months.

Barclays Currency Trader Loses Bid to Toss Fraud Case – Bloomberg

A Barclays foreign exchange trader must face criminal charges he manipulated currency option markets to enrich the bank at the expense of its client, Hewlett-Packard Co.

Survey Highlights Impact of Avoidable FX Risk in Corporate Earnings – Profit & Loss

In total, 70% of corporate chief financial officers (CFOs) said that their company suffered reduced earnings in the last two years due to avoidable, unhedged FX risk, according to a global survey of 200 CFOs and nearly 300 treasurers.

Cboe Europe, TP ICAP to Open EU Bases Ahead of Brexit – Financial News (subscription)

Cboe Europe, the stock exchange, and TP ICAP, the interdealer broker, plan to set up EU bases to secure access to the trading bloc amid uncertainty over the terms of Britain’s departure next year.

Clearers Diverge on SOFR Swaps Discounting – Risk (subscription)

CME Clearing and LCH, the two clearing houses battling it out for market share in US dollar interest rate swaps linked to Libor’s replacement, are set to adopt different methods for calculating margin interest and discounting.

Regulatory News

Bank of England: Some Policymakers See Possible Case for Higher Bank Capital Buffer – Reuters

Some Bank of England policymakers saw signs that a capital buffer for banks might need to be raised in future, the BoE said, but a recent slowdown in risk appetite meant no change was needed for now.

If Regulations Don’t Bend, They’ll Break – Risk (subscription)

Financial regulation should be adaptive, not reactive, argues Andrew Lo.

Crypto News 

Bitcoin Kicks Off Second Half of the Year with a 12 Percent Rally – CNBC

Bitcoin bounced back 12 percent from its lows last week, hitting a high of $6,609.50.

Over 800 Crypto Coins are ‘Dead’, Shows a Crypto Market Analysis – Crypto Vest

A new analysis of the cryptocurrency market shows that over 800 coins are now dead for various reasons. 

Switzerland Looks to Liberalise Cryptocurrency Banking Access – Financial Times (subscription)

Switzerland’s fast-growing cryptocurrency industry could have full access to conventional banking services by the end of the year, removing one of the restrictions to future growth, a top Swiss policymaker has said.

Company News

June Slows for FX Platforms, But FXSpotStream Posts Record ADV – Profit & Loss

Data from the first set of trading venues to report their monthly volumes shows that FXSpotStream had its best ever month in terms of average daily volume (ADV), while trading on other OTC FX platforms reporting volumes slowed down slightly in June.

LCH Adds JP Morgan as First US Bank to CDS Clearing Service – The Trade

JP Morgan is using LCH CDSClear to act as a clearing broker in credit default swaps for Swedish pension fund AMF.

CME Reports Two Margin Breaches in Q1 – Risk (subscription)

Clearing house CME reported two margin breaches totalling $79 million in the first quarter of the year.

Market Savvy

Czech Crown Falls to Near 11-Month Low Against Euro – Reuters

The Czech crown fell to a near 11-month low against the euro, succumbing to selling pressure in emerging markets less than a week after a central bank interest rate hike.

German Political Crisis Knocks Down CEE Currencies, Leu Resists – Reuters

Central Europe’s liquid currencies fell, with the forint hitting record lows against the euro as Germany’s coalition crisis prompted yet more selling of Central European assets.

Trade Wars Bite as Emerging Currencies Decline to 10-Month Low – Bloomberg

With a trade kerfuffle bruising investors, assets across emerging markets started the week with more declines.