Top Headlines

Sterling Slips Back Below $1.31 as Brexit Talks Begin – Reuters

Sterling slipped back below $1.31 after soaring to its highest levels in 10 months at the end of last week on a broad dollar sell-off.

Dollar Index Nears 10-Month Low – Financial Times (subscription)

The dollar hit its lowest level since before the US presidential election in Asia trading as the impact of subdued retail and inflation data from last week continued to drag on the greenback.

Yuan Set for Longest Run of Gains Since 2015 on Fixing, GDP Data – Bloomberg

The onshore yuan rose for the sixth day in a row, the longest run of gains since 2015, boosted by a stronger central bank fixing and data showing China’s economy held up in the second quarter.

Investors Brace for Accelerating EM Currency Rally – Financial Times (subscription)

The recent rally in emerging market currencies paused as the dollar regained some ground, but with recent data reinforcing views that the Fed will keep to its path of “dovish” rate hikes, analysts are predicting the EM march will restart soon.

Emerging Currencies Can Weather the Coming Rate-Rise Storm – Bloomberg

As global bonds reel under hawkish rhetoric by major central bankers, AllianceBernstein and Amundi Asset Management say emerging-market currencies will weather the storm better than 2013.

British Currency Traders Fly to New York to Face Rigging Trial – Bloomberg

Three former British currency traders touched down in New York over the weekend to face charges that they conspired to rig the foreign-exchange market.

BIS Paper Sees Some Evidence EUR/CHF Floor Break was Signalled – Profit & Loss

The authors attempt to quantify how unexpected the removal of the exchange rate floor was.

“Says Here You Play Cricket” – Profit & Loss (subscription)

And other highlights from 40 years in the FX industry.

Regulatory News 

Treasury Seeks Wall Street Input on Overhauling Watchdog – Bloomberg

The Trump administration is letting the financial industry make its case that a super regulator set up to prevent a repeat of the 2008 crisis should be reined in.

Brexit Puts Financial-Trade Tax on Ice as Banks Start Moving – Bloomberg

A six-year push to impose a tax on financial transactions in Europe may have run its course, with Germany and France dragging their feet as they prepare for Brexit and a redrawing of the financial map that has already begun.

Five Takeaways from China’s Weekend Meeting on Financial Regulation – Bloomberg

The most concrete decision out of the meeting so far is President Xi Jinping’s announcement of the creation of a cabinet-level committee to coordinate financial oversight – a task currently divided among four regulators including the People’s Bank of China.

Company News

Barclays Picks Dublin as Post-Brexit EU Headquarters – Bloomberg

Barclays has settled on Dublin for its main hub inside the European Union after Brexit and is planning to add about 150 staff there if UK-based finance companies lose easy access to the trading bloc, according to people with knowledge of the decision.

What Do Clients Want from Their Liquidity Providers? – Profit & Loss (subscription)

Kevin Kimmel, global head of e-FX at Citadel Securities, sat down to discuss what firms want from a modern liquidity provider.

Why Technology is a “Game Changer” for Regional Banks – Profit & Loss (subscription)

Dan Torrey, global head of FX e-commerce sales at Northern Trust, explains how technology can help revolutionise regional banks’ e-FX businesses.

John Mack Takes Bitcoin Where Dread Pirate Feared to Tread – Bloomberg

Cryptocurrencies should be viewed as new asset class, CTO says.

Market Savvy

Mexican Peso Poised for Best Week in Nearly Six Months – Financial Times (subscription)

The rally in the Mexican peso showed little sign of slowing on Friday, with the currency set to log its biggest weekly gain since late January.

Rand and Miners Climb After South African Government Suspends Mining Charter – Financial Times (subscription)

South Africa’s currency and shares in miners active in the country jumped after the government agreed to suspend the implementation of controversial new rules for the mining sector. 

C$ Notches 14-Month High as Data Shows Bearish Bets Slashed – Reuters

The Canadian dollar touched a 14-month high against its US counterpart as gains for oil added to support for the currency from higher interest rates, while data showed that bearish bets on the loonie have been slashed.