Top Headlines

Sterling Rallies as Investors Bet ‘Softer Brexit’ More Likely After Resignation – Reuters

Sterling rallied as traders bet that the resignation of Britain’s Brexit minister would not endanger the prime minister and instead focused on the government’s newly-announced plan that markets believe makes a “soft Brexit” more likely.

Dollar Sags After Soft US Wages Data, Brexit Woes Weigh on Pound – Reuters

The dollar struggled near 3½ week lows against its peers after US jobs data showed slower-than-expected wage growth, while the pound retreated as a key member of Britain’s cabinet resigned over Prime Minister Theresa May’s Brexit plan.

Yuan Strength Boosts Risk Sentiment, Euro Nears Four-Week High – Reuters

The Chinese yuan rebounded and the euro rose to its highest since June 14 as investors bought into riskier assets following favorable US jobs data last week and evidence that trade tensions have not yet dented economic momentum.

Currencies in Longest Losing Run Since 2015 on Trade: EM Review – Bloomberg

Emerging-market currencies declined for a sixth straight week after the US fired the first shot in a trade dispute between the world’s biggest economies.

JPMorgan Maps Out Currencies to Buy If Recession Is Coming – Bloomberg

If a US or global recession is looming, it’s time to own the Swiss franc, Singapore dollar, US dollar and Japanese yen – and ditch emerging market currencies, according to analysts from JPMorgan.

Katz’s Sentencing Adjourned Until January – FX Week (subscription)

Sentencing for Jason Katz, the former Barclays currency trader who pleaded guilty to price fixing, has been postponed until January 7, 2019.

TCA Providers Turn to Derivatives for Growth: Report – FOW (subscription)

As data becomes more available under Mifid II TCA providers can branch into derivatives, according to a report.

Brexit Delivers Blow to British Finance as Investments Slide – Bloomberg

Britain’s financial-services industry is suffering a drop in foreign investment while some of its European counterparts enjoy big gains, according to a new study that shows the starkest indication yet of Brexit’s impact on the sector.

The Challenge Facing Market News Incumbents – Profit & Loss (subscription)

The underlying issue for the traditional news sources is how do they continue to get people to pay for the content (or in the case of Bloomberg the terminal) when markets have already reacted thanks to other, occasionally less reliable sources?

In the FICC of It – Profit & Loss (podcast)

In this week’s In the FICC of It podcast, Colin Lambert has another one of his “theories” – this time about why 360T bought GTX – and Galen Stops thinks he knows why CboeFX is doing so well.

Regulatory News

US Has Launched ‘Largest Trade War in Economic History,’ China Says – Wall Street Journal (subscription)

Chinese Commerce Ministry says Beijing is being forced to strike back at the US with tariffs of its own.

Traders Find a Receptive Ear Among Regulators for Relaxing Rules – Financial Times (subscription)

Banks and trading firms are finally gaining the ear of global regulators in their efforts to refine post-crisis capital rules that in recent years have been blamed for exacerbating market shocks.

Central Banks Are Ramping Up Their Risk Taking – Bloomberg

The days of plain old bonds and gold are over as central banks bet some of their trillions of dollars of foreign reserves on mortgage-backed securities, corporate debt, equities and emerging-market debt.

Crypto News

BIS Chief to Crypto Coders: ‘Stop Trying to Create Money’ – Coin Desk

The head of the Bank of International Settlements has predicted a bad ending for cryptocurrencies, calling for an end to their production in a recent interview.

New York Stock Exchange Executive to Join Winklevoss Bitcoin Firm – Wall Street Journal (subscription)

A bitcoin exchange has hired the New York Stock Exchange’s top technology executive – the latest sign that cryptocurrency trading platforms are seeking to move beyond their rebellious roots and look more like traditional financial markets.

Bitcoin’s Lightning Network Could Play Havoc with the Bitcoin Price – Forbes

Bitcoin’s Lightning Network has been hailed as the saviour of bitcoin transactions – the thing that will allow the clunky and encumbered original blockchain-based cryptocurrency to compete with the likes of more nimble bitcoin cash, dash coin, lite coin and ripple.

Company News

German Government, JP Morgan Deny Report on Deutsche Bank – Reuters

The German government dismissed a report that it had privately raised concerns about Deutsche Bank, while JP Morgan denied it was interested in a stake in Germany’s biggest lender.

Brevan Howard Parts Ways with FX Portfolio Manager – HFM Week (subscription)

Asif Ghiawadwala set to leave Alan Howard’s firm.

Ice Clear Europe Had a Top Margin Breach of $91 Million in Q1 – Risk (subscription)

Ice Clear Europe reported nine margin breaches averaging $14.6 million for the first quarter, the biggest of them $90.8 million in size.

Market Savvy

Mexican Peso Returns from the Cold, Eyes Best Week Since 2011 – Financial Times (subscription)

The Mexican peso has gone from cold to hot in a span of just a few short days.

Copper and Aussie Dollar Highlight China’s Slowing Economy – Financial Times (subscription)

Copper and the Aussie dollar have been leading indicators of rising concerns about China’s slowing economy and mounting trade tension over the past month.

Ringgit’s Resilience Under Threat as Case for Rate Cut Grows – Bloomberg

Malaysia’s ringgit was sheltered from the worst of last month’s emerging-market selloff, thanks to higher oil prices. It may be about to make up for lost time.