Top Headlines

Sterling Struggles After Worst Week Since Early June – Reuters

Sterling edged back towards an almost six-week low against the dollar as growing doubts around the progress of Brexit talks with Europe continued to weigh on the currency.

US Dollar Edges Higher with Investors Awaiting Jackson Hole – Financial Times (subscription)

The US dollar drifted higher early in the European trading day, following its best week in more than a month, with investors eagerly awaiting the Federal Reserve’s economic conference.

Most Crowded FX Trade Fuels Warnings Hedge Funds Poised for Pain – Bloomberg

Shorting the dollar, the most crowded trade in foreign exchange, is getting too popular for its own good.

Euro’s Losses Deepen Before Jackson Hole – Reuters

The euro slipped, extending its biggest weekly decline in more than two months as markets judged the single currency’s double-digit gains this year may be too much for a central bank that is still wary of removing stimulus.

Here Is the Way to Find Out if the Euro Is Giving Mario Draghi Sleepless Nights – Bloomberg

ECB president may have developed a system to signal concerns about the currency strength.

Hong Kong’s Role in the Yuan’s Ongoing Journey to Achieve Global Prominence – South Ching Morning Post

But China’s financial reforms have succumbed to strong headwinds in recent years, with the currency reversing into a slide because of slowing economic growth.

Insider Trading Schemes Using Encrypted Apps Alarm FBI – Financial Times (subscription)

The Federal Bureau of Investigation is growing concerned that Wall Street traders are turning to encrypted apps to hide illicit communications from internal compliance

SEC Drops Claims Against Ex-JPM Traders in London Whale Case – Bloomberg

The US Securities and Exchange Commission dropped claims against two former JPMorgan Chase & Co. traders accused of hiding more than $6.2 billion in trading losses as part of the “London Whale’’ case.

Are There Too Many HFTs in FX? – Profit & Loss (subscription)

This is not market making, it is arbitrage with a twist – and the twist leaves a nasty taste in the mouth.

The ‘Finance Franchise’ and Fintech (Part 1) – Financial Times (subscription)

Lawyers often see the financial system differently to economists or financiers.

Regulatory News

Unintended Consequences of MiFID: Job Losses, Trading Turmoil? – Bloomberg

With the start of Europe’s MiFID II rules less than five months away, banks and asset managers are scrambling to prepare for a regulatory overhaul that risks doing more harm than good to the finance industry.

Dodd-Frank Is Still Here But Banks Have Reasons to Cheer Trump – Financial Times (subscription)

Post-crisis rules have not been repealed but new regulatory chiefs will please banks.

Mnuchin Defends Decision to Stay as Trump Sees Healing Ahead – Bloomberg

Treasury Secretary Steven Mnuchin pushed back against demands made by his former classmates at Yale University that he resign from Donald Trump’s cabinet, and on Saturday defended the president’s response to last weekend’s deadly protests in Charlottesville, Virginia.

Gary Cohn Has One Very Good Reason for Not Bailing on Trump – CNBC

Trump economic advisor Gary Cohn is thought to be the odds-on favorite to be the next Federal Reserve chair.

Trump Needs to Hurry Up and Pick Last CFTC Commissioners – Global Capital (subscription)

Brian Quintenz was sworn in as a commissioner at the CFTC, after he was confirmed alongside chairman Christopher Giancarlo and Rostin Behnam by the Senate.

Regulators Get Ready to Authorise ‘Ringfenced’ UK Banks – Financial Times (subscription)

Big banks need to split their retail services from riskier investment divisions by 2019.

FRTB to Create Winners and Losers on the Buy Side – Risk (subscription)

Wider spreads could hit returns, but some funds eye opening in exotic and securitised markets.

Company News

Ethereum Co-Founder Says Crypto Coin Market Is a Time-Bomb – Bloomberg

Initial coin offerings, a means of crowdfunding for blockchain-technology companies, have caught so much attention that even the co-founder of the ethereum network, where many of these digital coins are built, says it’s time for things to cool down in a big way.

Cahill Joins Hotspot’s London Sales Team – Profit & Loss

Hotspot has hired Mike Cahill as director, FX sales, in the firms’ London office.

Barclays Puts in Sensors to See Which Bankers Are at Their Desks – Bloomberg

Barclays has installed devices that track how often bankers are at their desks.

Symphony’s Gurle: The Best Is Yet to Come – FX Week (subscription)

Firm targets asset managers this year and aims to expand in Asia, Japan and Australia.

Market Savvy

Asian Currencies Cautious Ahead of Fed’s Jackson Hole Conference – Reuters

Asian currencies made little headway as investors were reluctant to stake out new positions ahead of US Federal Reserve’s annual central banking symposium in Jackson Hole later in the week.

Forint Eases, Central Bank May Try to Talk Currency Down – Reuters

The forint eased while most central European currencies were treading water, amid some expectations that the Hungarian central bank (NBH) could try to weaken the currency in the statement it issues after a rate-setting meeting on Tuesday.

Dealing with the Effects of One Bubble Creating More – Financial Times (subscription)

From stocks to SWAG and from bonds to bitcoin, many assets look overpriced.