Top Headlines

As Big Banks’ FX Case Ends, Judge Urges Probe of Traders – Bloomberg

A federal judge urged US authorities to pursue prosecutions against individuals as part of their investigation into the manipulation of currency markets as he accepted penalties against four of the world’s largest banks.

Former MF Global CEO Handed $5m Fine – Profit & Loss

Former MF Global CEO, Jon Corzine, has been fined $5 million and banned from working as a Futures Commission Merchant (FCM).

Dollar Index Down on the Week Ahead of US Jobs Data – Financial Times (subscription)

All eyes are on the US dollar ahead of key jobs data late today and as the greenback heads for its first back-to-back weekly loss in two months.

Dollar Traders Challenge Trump-Rally Thesis for the First Time – Bloomberg

Almost two months after Donald Trump’s election victory, investors’ frenzy over the president-elect’s policies is finally experiencing a reality check.

What Happened to the Dollar Rally? Don’t Worry, Not Much – Financial Times (subscription)

A pause in an overcrowded trade was always likely, but it’s far too early to call time.

Sterling Index Heads for First Weekly Gain in a Month – Reuters

Sterling was set for a second week of gains against the dollar and its first against a basket of currencies since the start of December, riding out nerves about the government’s preparations for Brexit talks due to start in March.

Platforms Confirm Volume Trends in December – Profit & Loss

Following the release of the first set of volume data from three platforms at the start of the week, a new set from three providers reinforces the impression that December was a decent month for those responsible for providing trading venues.

In Mexican Peso Battle, It’s Trump 1, Banxico 0 – Financial Times (subscription)

All it took was a 28-word Twitter missive from US President-elect Donald Trump to undo a carefully orchestrated $2bn-plus effort by the Mexican central bank to steady the peso. 

PBoC Raises Renminbi’s Daily Fix by Most Since 2005 – Financial Times (subscription)

Authorities act on rate after two-day surge but currency drifts lower. 

Yuan, Other Asia Currencies Seen Extending Slide in 2017 on Dollar Rally – Reuters

Emerging Asian currencies this year are set to extend their fall from 2016, as expectations of faster rate hikes from the Federal Reserve and US President-elect Donald Trump’s promise of fiscal stimulus push the dollar higher, a Reuters poll showed.

Strong Words, Subtle Moves: How China is Fighting to Defend the Yuan – South China Morning Post

Beijing wages war of words and widens regulation to safeguard value of its currency.

How a China Crackdown Caused Bitcoin’s Price to Plunge – Fortune

The value of the cryptocurrency bitcoin is melting down Thursday, having dropped 20% against the dollar by midday Eastern Time in only two hours of frantic trading.

Regulatory News

Banking Group Seeks Bipartisanship Rather Than Dodd-Frank Repeal – Bloomberg

A prominent banking group called on the new Congress to work “in a bipartisan manner” as it prepares for a re-evaluation of Dodd-Frank, but didn’t ask lawmakers for a repeal of the 2010 law.

Less Than Half of US Buy-Side Expect Direct Impact from MiFID II – The Trade

ITG warns MiFID II will have a significant impact beyond the shores of Europe.

MiFID II’s Algo Plans Come Under Fire – The Trade

Rules to restrict and flag algorithmic traders has led to a wave of criticism from market participants, but will the rules do any good?

South Korea Regrets FX Swap Talks with Japan Suspended Over Monument Row – Reuters

South Korea’s finance ministry expressed regrets that talks on a new currency swap agreement with Japan had been suspended by Tokyo due to political reasons.

Company News

Goldman Sachs Extends Lead in US Brokerage – FOW (subscription)

Goldman Sachs has strengthened its position as the top US futures broker, according to new data from the US Commodity Futures Trading Commission.

Technology Fuels Rise in Corporates’ FX Algo Usage – Euromoney

Corporate use of algorithmic FX trading appears to be bucking the trend of lower overall levels of corporate FX activity.

Market Savvy

Asia FX on Track for Weekly Gains in Wake of Yuan’s Surge – Reuters

Some Asian currencies edged higher, with the dollar weighed down by caution ahead of US jobs data, while the offshore Chinese yuan slipped back after a record two-day rally.

No End in Sight for Turkish Lira Woes – Financial Times (subscription)

The Turkish lira’s long slide showed no sign of letting up, slipping again and remaining mired near record lows.

The Australian Dollar Jumps to a Three-Week High as the Greenback Rally Wilts – Business Insider

The Australian dollar continued to climb in overnight trade, boosted by a rebound in the Chinese yuan and soft US labour market data ahead of tonight’s key US non-farm payrolls report for December.