Top Headlines

Sterling Strengthens After UK Services PMI Beats Expectations – Reuters

Sterling strengthened against the dollar and euro, after a survey of Britain’s dominant services industry showed growth sped up unexpectedly last month.

Talk of Dovish Fed Chair Knocks Dollar Off Seven-Week Highs – Reuters

The dollar pulled away from seven-week highs, amid speculation that US President Donald Trump’s choice for the next head of the Federal Reserve could be a less hawkish candidate than had previously been expected.

A $1 Trillion Fund Doubts Dollar Rally Will Last – Bloomberg

Dollar skeptics are extending their bets outside the US, even as the greenback rallies.

Election and Yen to Test Abe’s Powers of Recovery – Financial Times (subscription)

Investors wanting guidance on how to trade the yen during Japan’s general election might care to look at the experience of sterling.

FX Global Code Adoption ‘Slower Than Expected’ – Euromoney

Statements of commitment are gradually appearing, but many banks are still analyzing the provisions of the code against their own businesses before declaring adherence publicly.

Citi’s Lehman Settlement Closes Door on 2008 Post-Mortem – Wall Street Journal (subscription)

Citigroup will hand over $1.74 billion to walk away from disputes with now-defunct Lehman Brothers Holdings, a deal that cuts short an autopsy of the banks’ crisis-era derivative-trading practices.

Regulatory News

Trump Aides Deliver Shortlist of Fed Candidates – Bloomberg

President Donald Trump’s advisers have given him a final list of people they’re recommending as candidates to lead the Federal Reserve and have ended the search, according to seven people familiar with the matter.

Fed’s Next Bank Cop Seen as Icebreaker in Basel III Standoff – Bloomberg

Bank regulators worn down after a year of butting heads over new global capital rules see a glimmer of hope emerging in Washington in the form of Randal Quarles, who’s awaiting confirmation as the US Federal Reserve’s top bank overseer.

Basel Seeks NSFR Fix for Derivatives – Risk (subscription)

Possible fixes under consultation don’t go far enough, say banks.

Regulators Fret About Cyber Risk After SEC Hack – Wall Street Journal (subscription)

Fed and CFTC officials also express confidence they will make progress modifying Volcker rule trading ban, other financial rules.

Iraq Says It Will Stop Dollar Sales, Foreign Currency Transfers to Kurdistan – Financial Times (subscription)

Iraq says it will block foreign currency transfers and halt sales of dollars to banks in the autonomous Kurdistan region, part of its effort to squeeze the area in retaliation for its controversial independence referendum last week.

Company News

FXCM Steps Further Away from Global Brokerage – Profit & Loss

The management agreement between FXCM and Global Brokerage – the firm that rose from the ashes of FXCM’s US operation when it was banned earlier this year, has been formally ended.

Firms More Sanguine on MiFID II – Markets Media

With less than three months until MiFID II goes into force, attitudes towards industry preparedness have grown more positive, according to a recent informal poll conducted by the London Stock Exchange Group.

BSE Approves LSE’s Gatelab for Ultra-Low Latency FX Connection – FOW (subscription)

Users can now send orders to the Bombay exchange’s currency derivatives segment with ultra-low latency.

Market Savvy

Asia Pacific Currencies Advance as Dollar Pulls Back – Financial Times (subscription)

Asia Pacific currencies were gaining broadly against the dollar as the greenback retreated from Tuesday’s peak and the euro continued to recover from a six-week low.

Rouble Firms with Other EM Currencies, Shrugs Off Lower Oil – Nasdaq

Russia’s rouble firmed along with other emerging currencies, shrugging off a decline in oil prices.

CEE Markets: Currencies Jump on Dollar Retreat, Crown at Multi-Year High – Reuters

Central European currencies jumped, with the crown hitting its strongest levels in almost four years, as a retreat of the dollar triggered flows into emerging market currencies.