Top Headlines

Sterling Edges Up Ahead of UK Brexit Blueprint – Reuters

The pound rose as traders bet that a Brexit white paper policy document could help restart negotiations on trade between the European Union and Britain for when it leaves the bloc next March.

Price Action in Cable Illuminates Market Change – Profit & Loss (subscription)
It is a real paradox that as FX trading has become faster, so the playing out of fundamental moves seems to get slower.

Dollar Near One and a Half Week Highs as US Price Data Eyed – Reuters

The dollar held at a nine-day high, bolstered by concern US inflation pressures will pick up, although worries about an escalation in trade conflict capped gains.

Renminbi Continues Weakening on Trade Tensions, Dollar Steady – Financial Times (subscription)

China’s currency weakened further as trade tensions with the US continued to weigh on the renminbi, while the dollar held onto the previous day’s gains.

Trade War Kills Currency Volatility and Flummoxes Analysts – Bloomberg

Foreign-exchange traders are struggling to know which way to lean when it comes to betting on the escalating global trade war.

Looming Putin-Trump Meeting Boosts Demand for Roubles – Reuters

The rouble pared early losses, bolstered by hopes that Russian President Vladimir Putin and US President Donald Trump could move towards easing tensions between the two countries when they meet next week.

Bearish Bets on Asian Currencies Recede Slightly, But Caution Prevails – Reuters

Investors trimmed their bearish positions on emerging Asian currencies over the past two weeks, a Reuters poll showed, although escalating Sino-US tensions worsened the mid-term outlook for regional units.

EU and BoE Clash Over Fate of Financial Contracts After Brexit – Reuters

The European Commission said that existing financial contracts, such as derivatives or insurance, are unlikely to be affected by Britain’s departure from the European Union – a view the Bank of England described as “wrong headed”.

Theresa May Ditches Hopes of Keeping City in Tight Tie-Up with EU – Financial Times (subscription)

UK prime minister Theresa May has abandoned plans for a tight new relationship with the EU in financial services after Brexit, laying out a new proposal for a looser partnership in her long-awaited white paper.

Nex Shareholders’ Punchy Payday Protest – Financial Times (subscription)

More than 40 per cent of shareholders in Nex Group have voted against the UK financial technology company’s policy allowing management’s share bonuses to vest if a planned sale to Chicago’s CME Group goes ahead.

Regulatory News

FSB Reinforces Support for Overnight RFRs – Profit & Loss

The Financial Stability Board (FSB) has published a statement on reforms to interbank offered rates (IBORs) and the development of overnight risk-free, or nearly risk-free, rates (RFRs) and term rates.

Dealers Slam ‘Nonsensical’ Treatment of Forex Derivatives – Risk (subscription)

Proposal on US swap dealer threshold rekindles debate on definition of NDFs and window forwards.

Supreme Court Pick Kavanaugh Is Skeptic of SEC Power – Wall Street Journal (subscription)

Brett Kavanaugh has challenged the SEC in several recent cases.

Crypto News

US Regulators Shift Attitudes Regarding Cryptocurrencies – Profit & Loss

Speaking at Profit & Loss Forex Network New York, Mike Gill, chief of staff to US Commodity Futures Trading Commission (CFTC) chairman, Christopher Giancarlo, and the CFTC’s COO, provided a fascinating look at how attitudes towards cryptocurrencies have changed in Washington recently.

Hackers Target New Cryptocurrency Investors – Financial Times (subscription)

As cryptocurrency exchanges beef up security measures following a relentless run of heists, cyber criminals are turning their attention to stealing digital tokens directly from users.

Crackdown Turns China from Bitcoin’s Epicenter to a Wasteland – Bloomberg

Yuan-denominated trading in bitcoin has dropped to below one percent of the global volume, according to China’s state-run Xinhua News Agency, which cited the country’s central bank.

Company News

CME Technical Issue Keeps Some Customers from Connecting – Bloomberg

CME Group, the world’s biggest exchange operator, experienced a technical malfunction Wednesday that prevented some traders from accessing the market. 

Hedge Funds Suffer in June: BarclayHedge – Profit & Loss

Hedge Funds lost 0.31% in June according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 0.62% increase in the S&P 500 Total Return Index.

Thomson Reuters Unveils Eikon Digest – Profit & Loss

Thomson Reuters has announced the launch of Eikon Digest, what it terms a personalised proprietary service containing the most significant news, research, data and information from Thomson Reuters Eikon, its financial desktop platform.

Here’s How Citi, JPMorgan and Wells Fargo Could Move When They Report Earnings This Week – CNBC

Three of the big Wall Street banks report quarterly earnings at the tail end of this week.

Market Savvy

Turkish Lira Hits Record Low Against the Dollar – Financial Times (subscription)

Turkey’s currency tumbled late below its May low, nearing five lira to the dollar, amid a sharp deterioration in investor sentiment.

The Rupee’s Top Forecaster Is Going Against the Crowd – Bloomberg

The currency will strengthen by the year-end, Emirates NBD PJSC forecasts, bucking a growing consensus that sees it hitting new record lows.