Top Headlines
Tweets, Trade and the Fed Now Have Markets Moving in Packs – The Wall Street Journal (subscription)
Bonds, stocks and currencies are moving in tandem more often, as central-bank surprises and trade uncertainty assert their grip over markets. Known by investors as “risk-on, risk-off,” the phenomenon happens when markets essentially split into two broad buckets that move together.
The Democratisation of Data: What Comes Next? – Profit & Loss
As data in the FX market becomes increasingly democratised, panellists at Profit & Loss Forex Network debated what this means for the industry.
BIS Annual Report Warns of Big Tech Threat to Banks – FX Week (subscription)
The Bank for International Settlements has warned that big tech firms such as Facebook pose a risk to the international banking system, urging policy-makers to take action.
Regulatory News
The New York Stock Exchange and Nasdaq on Monday accused SEC official Brett Redfearn, who supervises them, of having ethical conflicts because of his prior Wall Street work, raising the ante in a battle with Washington over how the companies sell market data.
Regulators Target Manufactured Credit Events – Profit & Loss
A joint statement from US and UK regulators signals a continued scrutiny on so-called “manufactured credit events” in the credit derivatives market.
Pan Steps Down at CFTC – Profit & Loss
Eric Pan is leaving his role as director of the Commodity Futures Trading Commission’s Office of International Affairs in August.
Bernie Sanders Proposes Taxing Wall Street to Pay Student Debts – Bloomberg (subscription)
Democratic presidential hopeful Bernie Sanders is proposing cancelling the nation’s outstanding $1.6 trillion of student debtt and offsetting the cost with a tax on Wall Street transactions.
Crypto News
Facebook’s Full-Frontal Assault on Finance – Financial Times (subscription)
Flawed, derided, feared: Facebook’s proposal for a new virtual currency, revealed last week, has already provoked a backlash. But might it end up blowing the financial system wide open anyway?
- Libra’s Technical Features Are Not What’s Exciting – Bloomberg (subscription)
- A Monumental Fight Over Facebook’s Cryptocurrency Is Coming – CoinDesk
Bitcoin Buying Pressure Hits 2-Month High as Price Tops $11.4K – CoinDesk
Bitcoin’s price rose to fresh 15-month highs today, with a key technical indicator pointing to strongest buying pressure in over two months.
JP Morgan to Start Customer Trials of Its ‘JPM Coin’ Crypto – CoinDesk
JP Morgan is to start trials of its “JPM Coin” cryptocurrency in conjunction with corporate clients.
Company News
GlobalLink Joins FXPA – Profit & Loss
GlobalLink, State Street’s provider of e-trading platforms, technology, data and workflow solutions, has joined the Foreign Exchange Professionals Association.
Tradition Revamps its Market Data Business – Profit & Loss
Tradition has its revamped its market data and information services division, TraditionDATA, which will now offer more flexible data packages.
Jump Trading Latest to Launch FX Pricing Engine in Singapore – The Trade
Jump Trading is set to bring its FX pricing and trading engine to Singapore later this year, making it the latest financial institution to expand FX trading operations in the region.
Tradepoint Sell-Side Technology Streams Far-Date NDFs – FX Week (subscription)
Tradepoint says several banks have engaged the foreign exchange trading technology provider to support a streaming model for far-date and broken-date non-deliverable forwards.
US Investment Banks Dominate in the UK as Revenues Slide – Financial News (subscription)
US investment banks have moved up the rankings in the UK as most European banks continue to lose market share amid sliding revenues. As Brexit has weighed on dealmaking in 2019, investment banking revenues in the UK have slipped by 36% on the same period last year, according to preliminary data for the first six months provided by Dealogic.
Market Savvy
Dollar Weakens Further on Rate Cut Expectations – Financial Times (subscription)
The US dollar continued to lose ground on Tuesday amid rising expectations of rate cuts by the Federal Reserve, boosting other major currencies ahead of speeches by US rate-setters this week.
Tentative Pound Rise Capped as Johnson Says He is Serious on No-Deal Brexit – Reuters
Dollar weakness allowed the pound to briefly scale a one-month high on Tuesday, though the risk of no-deal Brexit stemming from the Conservative Party leadership contest kept the currency hemmed into a narrow trading range.
Trump and Xi to Seal a Deal? Traders Aren’t Holding Their Breath – Bloomberg (subscription)
Fund managers are sticking to their positions ahead of this week’s meeting between presidents Donald Trump and Xi Jinping, saying they don’t expect much progress to be made.