Top Headlines
Ashton Loses Appeal Against FX Ban and Fine – Profit & Loss
The US Federal Reserve has refused to stay a motion issued last year that banned former Barclays FX trader Chris Ashton from the FX industry and fined him $1.2 million.
Dollar Skids Lower as Euro Attention Turns to ECB Meeting – Reuters
The dollar stumbled near multi-year lows following the US Treasury Secretary’s comments that he welcomed a weaker greenback, while attention turned to whether the European Central Bank can stomach a surging euro at its policy decision.
- Dollar Steadies After Hitting Three-Year Low on Mnuchin’s Comments – Financial Times (subscription)
- Dollar Hits New Low After Mnuchin Says Weakness Aids Trade – Wall Street Journal (subscription)
A Weak Dollar ‘Good’ for the US? It’s Complicated – Reuters
A dollar rout intensified after US Treasury Secretary Steven Mnuchin said a lower greenback was “good for us” – though a weaker US currency may not prove a long-term economic boost.
Trade-Weighted Sterling Surges to 19-Month High – Reuters
Sterling strengthened to its highest levels on a trade-weighted basis since shortly after June 2016’s EU referendum, as optimism around Brexit and the economy continued to fuel a surge in the currency.
Euro Falls Below 87 vs Sterling to Lowest Since June 2017 – Reuters
The euro fell below the 87 pence mark against the sterling for the first time in seven months as the British pound’s rally against the dollar this week spread to other currencies.
Currency Traders Are Bracing for a Nafta Surprise – Bloomberg
Foreign exchange traders are paying a significant premium to bet on a blowup in the renegotiation of the North American Free Trade Agreement.
Goldman Discloses ‘Speed Bumps’ for Forex Clients – Risk (subscription)
Goldman Sachs has disclosed it applies ‘speed bumps’ of up to 200 milliseconds on electronic foreign exchange spot trades, where the client trades in a manner that could expose the bank to losses.
JP Morgan Boss in New Warning on Brexit Job Losses – BBC
The chief executive of JP Morgan has told the BBC it could cut its 16,000 UK workforce by more than a quarter if financial rules diverge after Brexit.
Barking Up the Wrong Tree – Profit & Loss (subscription)
Why the latest accusations of front running won’t change the modern FX market.
Why is BNY Mellon Launching an FXPB Service? – Profit & Loss (subscription)
The announcement by BNY Mellon this week that it is launching an FX prime brokerage (FXPB) service is interesting for a couple of reasons.
Regulatory News
A Wall Street Ally Leads the Charge to Roll Back the Volcker Rule – Bloomberg
OCC is said to send draft for revising rule to other agencies.
Forwards Users Unclear on Status of EU’s Margin Regime – Risk (subscription)
National regulators have not all taken public stance on pending postponement.
FCA Dismisses Gina Miller’s Threat of Mifid II Legal Action – Financial News
Regulator says it is right to adopt a measured approach to enforcement in the early days of Europe’s new trading era.
Barclays, M&G chiefs say at Davos forum that risks may arise in unexpected corners.
Regulators Are Looking at Cryptocurrency – Wall Street Journal (subscription)
Jay Clayton and J. Christopher Giancarlo: At the SEC and CFTC, we take our responsibility seriously.
Company News
BAML e-FX Head Leaves Bank – Profit & Loss
Market sources tell Profit & Loss that Liam Hudson has left his role as managing director and global head of FX e-commerce at Bank of America Merrill Lynch (BAML).
Manske Joins ISDA Board – Profit & Loss
The International Swaps and Derivatives Association (ISDA) has announced the appointment of Jason Manske, senior managing director, chief hedging officer and head of the global derivatives and liquid markets group at MetLife, to its board of directors.
Hedge Funds Grow Wary of Cryptocurrency Mania – Wall Street Journal (subscription)
Their caution is the latest sign of doubt among investors that the red-hot rise of bitcoin and its ilk is sustainable.
Market Savvy
Renminbi Reaches More Than Two-Year High as Dollar Declines – Financial Times (subscription)
The renminbi rallied, hitting its strongest level against the dollar in almost 27 months as the greenback fell further.
Brazil Court Upholds Lula Conviction Ruling – Financial Times (subscription)
The real extended the day’s gain, climbing 2.6 per cent to R$3.1550 – a three-month high after the ruling.
Analysts Expect Delay in NZ Rates Hike After Weak Inflation Data – Financial Times (subscription)
The New Zealand dollar, which was trading at around $0.7435 against the greenback before the CPI release, dropped 1.4 per cent to $0.7326 before paring back some of those losses to trade at $0.7350.