Top Headlines

Trade Jitters Spark Broad Gains for the US Dollar – Financial Times (subscription)

The US dollar climbed against a broad swath of developed and emerging market currencies amid mounting concerns over global trade.

Less Than Sterling: British Pound Suffers Worst Quarter Since Brexit Vote – Reuters

The British pound has suffered its worst quarter since the vote to leave the European Union in June 2016 triggered one of the biggest selloffs in the currency’s history.

Trade Disputes, German Politics Kick Euro Lower – Reuters

The euro weakened half a percent and other high-yielding currencies such as the Australian dollar wilted as rising concerns over an escalation in the trade dispute between the United States and its partners sapped demand.

Analysts React as Renminbi Resumes Slide – Financial Times (subscription)

China’s renminbi resumed its slide following its worst month on record in June and amid concerns that Beijing is prepared to use currency devaluation in a trade war with the US.

US Dollar Share of Global Currency Reserves Fall Further: IMF – Reuters

The US dollar’s share of currency reserves reported to the International Monetary Fund fell in first quarter of 2018 to a fresh four-year low, while euro, yuan and sterling’s shares of reserves increased, according to the latest data from the International Monetary Fund.

ASIC “Disappointed” in Lack of Progress in NAB FX Reform – Profit & Loss

The Australian Securities and Investments Commission (ASIC) has expressed disappointment at the failure of National Australia Bank to fully implement a reform programme linked to an Enforceable Undertaking (EU) levied by ASIC after deficiencies were found in its wholesale FX business.

Brexit Killing London as Financial Hub? Not Just Yet – Wall Street Journal (subscription)

With eight months to go before the UK is set to leave the European Union, the British capital’s role remains mostly undiminished and no single other European city is close to claiming its crown.

Consider the Impact on Regional Markets – Profit & Loss (subscription)

The FX industry – and more importantly certain regulators – have to be reminded that it is not all about the major centres.

In the FICC of It – Profit & Loss (podcast)

This week’s podcast takes a look at last week’s Global Foreign Exchange Committee meeting and pays tribute to FX industry veteran, Paul Chappell.

Regulatory News

New Capital Rules Spark Trader Retreat from Listed Derivatives – Financial Times (subscription)

Some of the most active traders on global derivatives exchanges are scaling back their positions as their banks clamp down in the face of new regulations.

Two Fed Presidents Warn Trade-War Angst Is Weighing on Businesses – Bloomberg

Two regional Federal Reserve presidents warned that worries over escalating trade disputes are increasingly weighing on businesses and adding risks to the US economic outlook.

German Banks Are Plotting a Counter-Attack Against MiFID II – Bloomberg

The country’s bankers are plotting to water down the MiFID II regulations that are increasing costs and eating into what are already the lowest profit levels in northern Europe.

Big Banks Are Exploiting a Risky Dodd-Frank Loophole That Could Cause a Repeat of 2008 – Fast Company

Michael Greenberger, who warned about the risk of a financial crisis 10 years ago, is worried that the Trump administration is doing nothing to close a new loophole that allows banks to take huge risks.

Crypto News

Thailand Leads in Crypto by Skipping the Big Debate – Bloomberg

Instead, using an emergency decree that came into effect earlier this year, authorities wrote an entirely new law.

Crypto Coin Tether Defies Logic on Kraken’s Market, Raising Red Flags – Bloomberg

Huge trades move prices about the same as small ones, ignoring the normal rules of economics, according to a review of Kraken’s public order book – a pattern that experts on market manipulation view as a red flag.

Some Cryptocurrency Investors Are Giving Up on Bitcoin and Cashing Out of Coinbase – Fortune

When the price of bitcoin rallied 33% in April, some cryptocurrency investors decided it was time to get out, rather than hang on in hopes of a continued surge.

Back to the Futures: Giving Institutions a Reliable Way to Capitalise on Cryptocurrency – Profit & Loss (subscription)

The key lies in stablising its price, says Obi Nwosu, CEO and co-founder of the cryptocurrency exchange, Coinfloor.

Company News

CLS Live with New Tool for Asset Managers – Profit & Loss

CLS’s new post-trade monitoring and reporting tool, CLSTradeMonitor, has gone live with the first asset managers, including Mesirow Financial and Mountain Pacific Advisors.

Batavia Joins UBS – Profit & Loss

UBS has hired Amit Batavia as director, EMFX trading, in Singapore.

AI Invasion of Wall Street Is Reshaping BofA’s Currency Research – Bloomberg

For the first time, the bank’s currency strategists are using machine-learning programs to tell clients what to buy and sell.

Market Savvy

Peso Falls as AMLO Lead Spurs Uncertainty Over Mexico’s Economy – Bloomberg

Initial euphoria over Andres Manuel Lopez Obrador’s apparent landslide victory soured as the dollar’s gain jolted investors back to the reality that a leftist president may alter the nation’s economic model.

Russia Ringfenced as Old Empire’s Currencies Thrive – Bloomberg

For the first time in half a decade, the Russian currency suffered the worst performance in the first six months of the year among its 11 ex-Soviet peers.

Argentine Peso Sinks to Record Low – Financial Times (subscription)

The Argentine currency started trading with a thud on Friday, sinking 3.3 per cent at the market open to a new record low of 28.90 per dollar and putting it on track for a 7.3 per cent loss for the week.