Top Headlines

Sterling Rises as UK Services Data Builds Case for Rate Hike – Reuters

The pound rose after a survey showing Britain’s dominant services industry gained momentum last month fuelled expectations of a Bank of England interest rate hike this summer.

Euro Edges Higher, Yuan Gains as Trade Concerns Linger – Reuters

The euro rose against the dollar but the move was limited as concerns ahead Washington’s end-of-week deadline to impose tariffs on Chinese imports kept many investors on the sidelines.

Renminbi Heads for Third Best Day in 2018 After PBoC Support – Financial Times (subscription)

China’s currency was on track for its third biggest gain this year after the country’s central bank appeared to intervene to arrest a steep decline the previous day.

China to Be Less Interventionist on Yuan Than in 2015: Sources – Reuters

China is comfortable with a weakening yuan, intervening only to prevent any rapid and destabilising declines or to restore market confidence, as the economy loses momentum and faces further risks from a heated trade dispute with the United States, policy insiders said.

Mexican Peso Jumps After Lopez Obrador’s Conversation with Trump – Bloomberg

Mexico’s peso led gains among emerging-market currencies as sentiment improved overnight on speculation that Andres Manuel Lopez Obrador, the country’s next president, may seek a congenial relationship with his US counterpart.

Treasury Chair Presses City Bosses for Fast Brexit Analysis – Financial News (subscription)

The chair of the UK’s influential Treasury Committee has urged the City’s top policymakers and regulators to waste no time in analysing the impact of any final Brexit deal on financial firms.

UK Lawmaker Says Secret Hedge Fund Brexit Polling a ‘Scandal’ – Bloomberg

UK lawmaker George Foulkes said hedge funds use of private polling data to bet on the outcome of the 2016 British referendum was a “scandal,” and called for an investigation into practices revealed in a Bloomberg report.

Regulatory News

ESMA Denies Pension Funds Extended Clearing Exemption – The Trade

Pension funds will no longer be spared from mandatory clearing of OTC derivatives from August after Europe’s regulatory watchdog refused to extend their exemption from the ruling.

Crypto News 

FCA to Experiment with Crypto Assets in Latest Regulatory Sandbox Round – The Trade

The UK’s Financial Conduct Authority (FCA) is to begin testing propositions relating to crypto assets, with FinTech firms chosen for its latest regulatory sandbox round.

Bank of Finland Releases Scathing Crypto Report, Calls Digital Currency a “Fallacy” – Coin Telegraph

It aims to explain how cryptocurrencies’ fundamental nature “shows how poorly understood the concept of money itself still is today” and how the Internet and social media have “muddled our sense of fact and fiction.”

BestX to Offer Crypto TCA – Profit & Loss

BestX is expanding its best execution analytics suite to include the main digital currencies of bitcoin, ether, litecoin, bitcoin cash and ripple.

R3 Plays Down Own Blockchain Product Ahead of Launch – Financial News (subscription)

The London-based startup has been working since 2015 to get its blockchain ready for finance.

Coinbase Has Been Working on a New Program to Police Its Markets, and It Has Hired a Former New York Stock Exchange Exec to Lead the Effort – Business Insider

Coinbase, the cryptocurrency exchange operator, is building out a platform meant to better monitor its markets.

Company News

NEX, CME Volumes Drop from May – Profit & Loss

In keeping with data released yesterday by other platforms, CME Group and NEX Markets saw a month-on-month decline in average daily volume in June.

UK Clearing House LCH Sees Record First Half – Financial Times (subscription)

Banks, asset managers and big corporations have shrugged off the uncertainty around the future regulation of euro derivatives clearing after Brexit by pouring even more business into LCH, the UK clearing house.

Leinwand Joins StanChart – Profit & Loss

Jason Leinwand has joined Standard Chartered as head of sponsored solutions Americas. Based in New York, he joins from FirstLineFX, a firm that he founded in 2016 to provide FX strategy advice.

Market Savvy

Swedish Krona Bounces on Upbeat Inflation Forecast – Financial Times (subscription)

Sweden’s krona bounced after the country’s central bank delivered an upbeat outlook on inflation, raising the chances that it will join the growing number of monetary authorities starting to tighten policy in the second half of the year. 

Turkish Lira Drops 1% After Inflation Hits 14-Year High – Financial Times (subscription)

Turkey’s inflation soared to a 14-year high in June, increasing pressure on President Recep Tayyip Erdogan to intervene to halt steadily rising prices.

Iran’s Policy to Stem Currency Decline Backfires – Bloomberg

The Iranian central bank’s efforts to stem the rial’s decline and stamp out the currency black market have backfired, undercutting President Hassan Rouhani’s case that he can parry the US war on the Iranian economy.