Top Headlines 

Sterling Jumps After UK Retail Sales Beat Expectations – Reuters

Sterling jumped by almost a cent against the dollar after data showed British retail sales surged unexpectedly in August, increasing pressure on the Bank of England to lift interest rates from their record lows.

Dollar Nursing Losses Ahead of Federal Reserve Policy Decision – Bloomberg

The dollar saw afternoon losses as investors looked to the Federal Reserve policy decision due Wednesday, which is expected to include plans for unwinding the central bank’s $4.47 trillion portfolio.

 This Is the Euro’s Moment to Become the Go-To Currency – Financial Times (subscription)

Dollar woes and the boost of a Macron-Merkel axis have rejuvenated the single currency.

European Recovery Is Under Way and Investors Are Taking Notice – Financial Times (subscription)

The euro’s strength will not derail the pick-up in growth, says MUFG’s Derek Halpenny.

China Lowers Yuan Midpoint to Weakest in Nearly Three Weeks – Reuters

China’s central bank lowered its official yuan midpoint to 6.5670 per dollar, the weakest level since September 1, reflecting softness in spot yuan a day earlier.

Yuan Fix Is Back in the Spotlight – Bloomberg

For Sean Yokota, one has to just look at the yuan’s daily fixing to decipher China’s foreign-exchange policy. Especially these days.

The Paradox of Prime – Profit & Loss (subscription)

Prime brokerage has had an interesting relationship with the FX market – after the initial burst of excitement when it first launched in the late 1990s, the middle years of the first decade of this century saw a growing consensus that it was a good idea that had, had its day.

Is TCA Just a Morality Carwash? – Profit & Loss

Following on from the feisty debate that Profit & Loss hosted in New York regarding last look, at Forex Network Chicago this year we will be hosting a debate on Transaction Cost Analysis (TCA).

Bitcoin Is Likely to Split Again in November, Say Major Players – Bloomberg

Bitcoin is looking increasingly likely to splinter off again in November, creating a third version of the world’s largest cryptocurrency as miners and developers pursue separate visions to scale its rapidly growing marketplace.

Regulatory News

 EU-US Swaps Trading Equivalence Tipped for November – Risk (subscription)

Hong Kong and Singapore unlikely to be deemed equivalent for start of Mifid II. 

EU Markets Cop Set for Power Boost as Brexit, MiFID II Loom – Bloomberg

The top European Union markets regulator is in line for an injection of sweeping new powers as the bloc braces for the impact of Brexit and new MiFID II rules on its capital markets.

Fed Official Voices Support for Simpler Capital Regime – Risk (subscription)

US regulators may consider combining some capital ratios into a single measure.

The CFTC’s Plan to Reward Cooperation – Wall Street Journal (subscription)

CFTC’s enforcement director has made clear he intends to make broad use of a set of policies for non-prosecution agreements.

It Would Be Reckless to Tear Up Dodd-Frank – Newsweek

In contrast to Dodd-Frank, the Financial CHOICE Act goes back to the microprudential view, ie its focus is on the risks of isolated financial institutions.

Wall Street vs. the Regulators: Public Attitudes on Banks, Financial Regulation, Consumer Finance and the Federal Reserve – The Cato Institute

Although Americans are distrustful of Wall Street, they are similarly distrustful of the Wall Street regulators tasked with overseeing the industry.

At FINRA, the ‘How’ Matters – Markets Media

The challenges a new chief executive officer faces are at times influenced by the state of affairs left to them by their predecessor.

Swiss Shut Down ‘Fake’ e-Coin in Latest Cryptocurrency Crackdown – Reuters

Switzerland’s financial watchdog has closed down what it said was the provider of a fake cryptocurrency and is investigating around a dozen other possible fraud cases, in the latest clamp-down on the risks involving virtual money.

Company News

Shah Tapped to Head G10 FX at BNP – Profit & Loss

Neehal Shah has joined BNP Paribas as global head of G10 FX trading with immediate effect.

Deutsche Bank ‘Beyond Repair’ as Trading Drops, Autonomous Says – Bloomberg

The firm’s “faltering” fixed-income and currency markets franchise, which generates about a quarter of profits, can no longer be counted on to drive earnings, Autonomous co-founder Stuart Graham said.

P&L Talk Series with John Betts – Profit & Loss (subscription)

Noble Bank International CEO John Betts on credit constraints, real-time settlement in FX and the need for greater innovation.

LCH to Introduce Portfolio Margining Floor – FOW (subscription)

The clearing house recently expanded its RepoClear service to the buy side.

CME and ICE Make Changes to Incentive Schemes – FOW (subscription)

The Merc said earlier this month it would stop clearing CDS contracts by the middle of next year.

Market Savvy

Won Shrugs Off Trump’s Threat to “Totally Destroy” North Korea – Reuters

The South Korean won strengthened against the dollar, brushing aside US President Donald Trump’s statement that the United States may have to “totally destroy” North Korea.

New Zealand Dollar Hits Six-Week High as Opposition Tumbles in Pre-Election Poll – Financial Times (subscription)

The New Zealand dollar jumped as much as one per cent following the release of a new poll showing the governing National Party could rule alone after the country’s general election on September 23.