ANZ Bank and Macquarie Admit to Attempted Rigging in Malaysia

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Top Headlines

ANZ Bank and Macquarie Admit to Attempted Rigging in Malaysia – Sydney Morning Herald

ANZ Bank and Macquarie Group have admitted their traders tried to rig a key benchmark rate in Malaysia’s foreign exchange markets, breaking cartel laws and resulting in multimillion-dollar fines.

ANZ, Macquarie Currency Cartel May be the First of Many – Australian Financial Review

The timing of the competition watchdog’s settlement with ANZ and Macquarie is certainly noteworthy.

Sterling Heads for Best Run of Gains vs Euro Since Early 2015 – Reuters

Sterling steadied on track for its best run of weekly gains against the euro since early 2015, with investors switching their primary focus from the political risks facing Britain as it exits the EU towards those facing the euro zone.

Dollar Dips on US Bond Yields, Thanksgiving Hangover – Reuters

The dollar retreated against its major currency peers, a pullback in U.S. bond yields spurring some profit-taking as it headed for its best run in almost two years.

Donald Trump and the Dangerous Allure of a Strong Dollar – Financial Times (subscription)

The president-elect may be flattered by a rising currency but it could become a drag.

Retreating Dollar Gives Emerging Markets a Breather – Reuters

Emerging markets looked to end the week on a cautiously positive note with stocks poised to snap a four-week losing streak while a number of currencies pulled away from record lows thanks to the dollar taking a break from its relentless rally.

In Asian Currency-Reserves Check-up, Two Come Out on Top – Bloomberg

A measure developed by the IMF itself shows that Thailand and the Philippines may be best placed to withstand further downward pressure on the emerging currencies in Asia, based on calculations taken before the Donald Trump-induced US reflation play roiled the foreign-exchange market.

JP Morgan Names Markets Execution Management – Profit & Loss

JP Morgan has created a markets execution team, which will focus on providing clients with electronic distribution of macro (including futures and options and Neovest) markets products across multi-channels.

Renminbi Touches Eight-Year Low in EM Currency Rout – Financial Times (subscription)

Rush back into US assets leaves range of Asian currencies at record lows.

Japan’s Weak Yen Offers New Hope in War on Deflation – Financial Times (subscription)

Prices in East Asian country show signs of bottoming as currency weakens.

Turkish Lira Back to Record Low After EU Vote – Financial Times (subscription)

The Turkish lira’s brief boost after the central bank raised interest rates has been wiped out, and then some, with the currency sinking to a fresh record low after the European Parliament voted to call for a suspension of EU membership talks.

Krona Rally Extends as Riksbank Deputy Ponders End of QE – Financial Times (subscription)

The Swedish currency has rallied more than three per cent since sinking below SEK10 per euro earlier this month, and is recovering further today after the Riksbank’s deputy governor questioned the value of further rate cuts or bond buying.

Compliance Not the Only Driver for FX Firms to Beef Up Comms Technology – Euromoney

Regulatory requirements are driving the development of more sophisticated monitoring software, but FX market participants also have much to gain commercially from ensuring their communications systems are technologically robust.

FX Market Grapples with Tech Dilemma – Euromoney

Banks and brokers face a tough decision as they struggle to keep up with technology: when to abandon upgrades and take the plunge into a new system.

Regulatory News

ECB Warns on Potential Fallout from Trump Election – Wall Street Journal (subscription)

The European Central Bank issued a fresh warning about potential economic fallout from the US presidential election, cautioning that Donald Trump’s policies could trigger instability and even a trade war.

EC Proposes Respite for Derivatives Clearing – The Trade

The European Commission has proposed an easing of clearing and collateral requirements for smaller buy-side firms, as well as changes to implementing stricter capital rules for banks.

Esma: Blockchain Will Render Some Processes Redundant – The Trade

Report on blockchain by EU regulator states certain regulatory requirements could become less relevant as blockchain technology progresses.

BoG Announces New FX Auction Rules – News Ghana

The Bank of Ghana has announced regulations to govern the conduct of competitive multiple-price foreign exchange auction to allocate foreign exchange against the Ghana Cedi.

Company News

DTCC Extends GTR Across Canada – Profit & Loss

The Depository Trust & Clearing Corporation (DTCC) says that its Global Trade Repository has added trade repository services for Newfoundland and Labrador.

Manufacturing Sector Accessed $867m FX in One Month, CBN – Nigeria Today

The Central Bank of Nigeria says some 7,792 requests for foreign exchange in October accessed over $867 million through the inter-bank window to enable them source vital raw materials and spare parts for their respective industries.

Market Savvy

Fragile Asia FX Set for Weekly Losses on Rising Dollar, US yields – Reuters

Most emerging Asian currencies saw marginal gains but looked set for weekly losses as the stronger dollar and higher US Treasury yields prompt global investors to dump regional assets.

Venezuela’s Currency Just Had the Biggest Monthly Collapse Ever – Bloomberg

Venezuela’s currency – the so-called “strong bolivar” – is weakening beyond levels that analysts had forecast just a few weeks ago as an expanding money supply chases a limited amount of US dollars.

Myanmar’s Kyat Pulls Back from Record Low Against Dollar – Financial Times (subscription)

With attention focused on the yen, ringgit and peso, Myanmar’s currency quietly hit a point of record weakness, little more than a year out from the historic elections that restored civilian governance.