Top Headlines

Sterling Dips Below $1.28 for First Time Since June – Reuters

Sterling fell briefly below $1.28 for the first time since late June and deepened its recent losses against the euro as gloom over Britain’s economic prospects and the Brexit process encouraged investors to push the pound lower.

Dollar Buoyed by Positioning for Possible Jackson Hole Rebound – Bloomberg

The dollar rose against most Group-of-10 peers amid profit-taking on short positions and as fresh long exposure was added before the Federal Reserve’s annual economic symposium later this week.

Euro Edges Higher on PMI Data; Markets Await Draghi Speech – Reuters

The euro edged higher recovering from the day’s lows, though gains on strong private sector growth data from Germany remained muted as investors braced for speeches from European Central Bank President Mario Draghi this week.

The Pound to Euro Rate at 1.00? Not Likely say Nordea – Pound Sterling Live

A complete meltdown of UK key figures is already priced into EUR/GBP.

Hong Kong Dollar Edges Closer to Decade Low – Financial Times (subscription)

The Hong Kong dollar was again flirting with a decade-low as it weakened against its US counterpart two weeks after the city’s de facto central bank moved to shore up the currency.

Why the Chinese Yuan’s Hot Streak Will Cool Off – Wall Street Journal (subscription)

Few investors believe the currency has started a fresh appreciation cycle.

Wall Street Banks Warn Winter Is Coming as Business Cycle Peaks – Bloomberg

HSBC Holdings, Citigroup and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle.

Regulatory News

ISDA: Markets Likely to Avoid Disruption from VM Rules – Profit & Loss

The derivatives industry can breathe a sigh of relief regarding new variation margin (VM) requirements, as it now looks like majority of market participants will be ready for them, according to the International Swaps and Derivatives Association (ISDA).

US Regulators Propose Delaying Stricter Capital Rules for Smaller Banks – Reuters

US bank regulators proposed holding off on implementing stricter capital rules for smaller banks while the agencies review ways to simplify requirements for less complex institutions.

Covered Funds Seen as Starting Point for Volcker Rule Reform – Risk (subscription)

Inter-agency consensus may prove more elusive on altering prop-trading definitions.

With Alumni in the White House, Goldman Sees an Opening – Financial Times (subscription)

Investment bank now targeting Volcker rule in DC lobbying after Obama-era battering.

Company News

CloudMargin Connects to DTCC Euroclear – Profit & Loss

CloudMargin and DTCC-Euroclear’s GlobalCollateral unit have entered into an agreement to connect CloudMargin with the latter’s Margin Transit Utility (MTU).

Bitcoin Skeptic Mark Cuban to Invest in Cryptocurrency Fund – Bloomberg

Mark Cuban wants in on the cryptocurrency boom even if it turns out he’s right that bitcoin is in a bubble.

Tech Giants Like Amazon and Facebook More Disruptive to Banks Than Fintech Start-Ups: WEF – CNBC

Banks are faced with more competitive disruption from tech behemoths than financial technology (fintech) start-ups, according to a report by the World Economic Forum (WEF).

Market Savvy

New Zealand Dollar Dips as Dollar Gains on Asia Currencies – Financial Times (subscription)

Asia Pacific currencies were down against the dollar to varying degrees ahead of this week’s gathering of central bankers in Jackson Hole. 

Asian Currencies Inch Up on Receding Risk Aversion – Reuters

Asian currencies were steady, supported by improving risk sentiment due to easing concerns over geopolitical risks in the region.

Turkish Lira Enjoys ‘Festive’ Climate in Currency Markets Against Dollar – Daily Sabah

The Turkish lira is maintaining its upward trend against the dollar, which began in February this year.