Top Headlines
Study Seeks to Challenge FX Aggregation Assumptions – Profit & Loss
A study released by Deutsche Bank seeks to challenge the assumption that having more liquidity providers in an aggregator inevitably leads to better execution.
Dollar Finds Its Feet Ahead of BoJ and ECB Policy Calls – Financial Times (subscription)
It’s the morning after a long, dark session for the dollar and the world’s reserve currency is finding support.
- Dollar Hovers Near 10-Month Lows; Central Banks Eyed – Reuters
- Dollar Slumps After Senate Deals Blow to Trump’s Policy Agenda – Wall Street Journal (subscription)
‘Cold Feet’: Euro Dips from 14-Month High Ahead of ECB Meeting – Financial Times (subscription)
The euro has slipped back from its highest level since May 2016 this morning as investors eye the European Central Bank’s last major policy decision before the summer lull tomorrow.
Sterling Slips Back Towards $1.30 as BoE Rate Hike Bets Fade – Reuters
Sterling slipped back towards $1.30, adding to falls the previous day after weak inflation data poured cold water on expectations that the Bank of England will hike rates this year.
Mexico Peso Hits 14-Month High, Brazil Real Firms Sharply – Reuters
Mexico’s peso hit a more than 14-month high and Brazil’s real firmed sharply after the collapse of a key US healthcare bill fostered doubts about President Donald Trump’s economic plans and broadly weighed on the dollar.
Asia’s Top-Performing Currency Is Missile-Proof – Bloomberg
After three years of losses against the dollar, South Korea’s won didn’t begin 2017 looking like a winner – with the US raising interest rates and tensions rising with its nuclear-armed neighbor.
Aussie Dollar Bulls Target 80 US Cents – Bloomberg
The Australian dollar is set to build on its rally and surge to 80 US cents, the strongest level in more than two years, as the central bank said the economy is improving, according to money manager Eaton Vance Corp.
Regulatory News
The Trump administration plans to nominate Hester Peirce to fill a vacancy as a Republican member of the Securities and Exchange Commission, the White House said.
Bank analyst: Trump advisor Gary Cohn as Fed chair would send mixed signals.
Financial Watchdog Expects Firms to Make Brexit Moves After Year-End – Reuters
Financial firms are waiting until the end of the year before moving staff and business ahead of Britain’s departure from the European Union in 2019, the country’s markets watchdog said.
Company News
Bank of England Wants Less Libor-Centric Financial World – Reuters
Interest rates used to price financial contracts worth trillions of dollars globally should in future be based on actual market transactions and not banks’ judgments, Bank of England Governor Mark Carney said in minutes of a meeting released.
Mifid II Cost Disclosures Pose Risk to Liquidity, Warn Banks – Risk (subscription)
Dealers hope standardised methodology for some clients could mitigate impact.
Market Savvy
After slowing their advance slightly at the beginning of the week, emerging market currencies made renewed gains, with central and east European currencies hitting more than two-year highs.
LatAm Currencies Strengthen on US Healthcare Bill Collapse – Reuters
Latin American currencies strengthened after the collapse of a key US healthcare bill fostered doubts about President Donald Trump’s plans to lift the economy.
C$ Touches 14-Month High as US Dollar Slides on Fed, Trump – Reuters
The Canadian dollar strengthened against the greenback, which sank to its weakest level in 10 months against a basket of rivals and helped steer currency market direction, as uncertainty around hawkish central banks and US President Donald Trump’s agenda weighed.