Top Headlines
US Signals Clampdown on Red-Hot Digital Coin Offerings – Bloomberg
US regulators said they have jurisdiction over one of the hottest new areas of finance: initial coin offerings of digital currencies.
- Wall Street Regulator Sets Sights on Digital Coin Offerings – Reuters
- SEC Says Initial Coin Offerings May be Subject to Securities Law – Financial Times (subscription)
Dollar Rises from 13-Month Low Before Fed Decision – Reuters
The dollar edged higher, rising from a 13-month low hit in the previous session as investors trimmed some short bets before a Federal Reserve policy decision.
- Dollar Rises Ahead of Fed Decision – Financial Times (subscription)
- Dollar Rises After Health Care Vote – Wall Street Journal (subscription)
Time to Fold: BNP Paribas Gives Up on Bullish Dollar View – Financial Times (subscription)
French bank BNP Paribas has given up on the idea that the dollar can regain its highs for the year, partly because of a new more cautious stance on the path of interest rates.
Sterling Steadies Ahead of GDP Data – Reuters
Sterling steadied just above $1.30 as traders looked to preliminary GDP data for the second quarter for signs of whether the British economy is building enough momentum to allow for monetary tightening in the coming months.
Australian Dollar Pushes Lower After RBA Governor Speech – Financial Times (subscription)
What had looked like persistent strength for the Aussie dollar, even after drab inflation data, now appears to be melting away after a speech from the Reserve Bank of Australia’s governor suggested the central bank would take no cues from its counterparts’ recent tightening.
The Fight for Euro Clearing After Brexit Spills Out in Public – Bloomberg
The battle to control euro clearing once the UK leaves the European Union is getting uglier.
The European Central Bank says that Europe’s hopes of gaining London’s FX business are hampered because of the need to transfer data via fiber optic cables under the sea, but there are FAR more reasons than that as to why the entire business will never leave London.
Former Barclays Trader Banned by Fed – FX Week (subscription)
A former Barclays foreign exchange trader was banned permanently from working in the banking industry by the Federal Reserve Board (FRB) on July 24, for engaging in co-ordinated trading with competitors and disclosing confidential information.
Regulatory News
Trump Says Yellen, Cohn Both in Running to Be Fed Chair – Bloomberg
President Donald Trump said he may reappoint Federal Reserve Chair Janet Yellen to a second term at the helm of the US central bank, while indicating that White House aide Gary Cohn was also a top contender for the position.
Funds Call for Delay to SEC’s ‘Nebulous’ Liquidity Rule – Risk (subscription)
Industry groups say monitoring tools are six months from ready.
Bailout Obsession Holds Back US CCP Resolution Regime – Risk (subscription)
Dodd-Frank leaves legal uncertainty, but proposed alternatives could be even worse.
UK Launches Inquiry Into Financial Regulation Post-Brexit – FOW (subscription)
House of Lords cited ongoing uncertainty over the UK-EU financial regulatory framework.
Company News
European Derivatives Exchanges Update Tech Ahead of MiFID II – The Trade
Exchanges across Europe have been forced to update their trading technology to incorporate MiFID II transparency requirements.
Citi CEO Signals End of Post-Financial Crisis Restructuring – Financial Times (subscription)
Citigroup has “crossed an inflection point”, the US bank’s chief executive maintained on Tuesday at its first investor day since 2008 – even as he recognised that returns had disappointed shareholders.
BofA Says Bitcoin Needs Acceptance to Thrive but That’s Unlikely – Bloomberg
Bank of America Merrill Lynch is looking past the increase in bitcoin trading volume to caution against a surge in optimism surrounding the digital currency.
Libor Ruling Raises New Concerns for Deutsche Bank Trader Case – Bloomberg
A US judge said defense lawyers have a new opportunity to challenge charges against two former Deutsche Bank AG traders accused of rigging Libor after last week’s appeals court ruling tossing out a similar case against ex-Rabobank Groep traders.
Market Savvy
Asian Currencies Subdued as Fed Meeting in Focus – Reuters
Most Asian currencies inched lower as the dollar edged up from a 13-month low, with investors on the sidelines awaiting clues from the US Federal Reserve on the timing of its next monetary tightening.
C$ Holds Near 14-Month Highs as Rally Stalls, Fed in Focus – Reuters
The Canadian dollar was steady against the greenback after briefly touching a 14-month high, as the US currency pared earlier losses ahead of the Federal Reserve’s next policy announcement.
Zloty Firms on Hope EU Sanction on Poland Is Not Imminent – Reuters
The zloty firmed slightly on expectations that the European Union’s executive will not launch new legal proceedings against Poland over a law allowing the government to appoint judges.