Top Headlines

Asian Export Nations Wary Dollar Boost Gives Trump Pretext to Beat Them – Reuters

Asian currency policymakers are worried that the strengthening of the dollar on expectations of US President-elect Donald Trump’s fiscal policies could be used by his administration as a stick to beat them with on trade protectionist grounds.

Bank Negara Governor Hits Out at NDF Market, MYR at Year’s Low – Profit & Loss

The Malaysian Ringgit is approaching its lowest trading level against the US dollar since the Asian crisis in 1998 when the country was prompted to introduce capital controls.

Widespread Attestations Being Considered for Code Adherence – FX Week (subscription)

The Bank for International Settlements’ foreign exchange working group, which is developing the Global Code of Conduct for the wholesale market, is considering using widespread attestations to ensure the code is being adhered to.

Liquidity Conditions “Here to Stay” – Profit & Loss

A new survey of hedge funds finds that almost half of respondents believe that decreased market liquidity “is a secular shift that is here to stay”.

Dollar Dips, Stocks Fall as Trumpflation Trade Pauses – Reuters

The dollar edged lower against major currencies and global stocks were on the defensive as a “Trumpflation”-fuelled rally paused and political risks came to the fore in Europe.

Investors Watch Dollar’s Surge and Ask: How High Will it Go? – Financial Times (subscription)

December policy tightening and more to come in 2017 set to drive greenback strength.

The Unbearable Lightness of a Stronger Dollar – Financial Times (subscription)

The rise in the US currency since the election could easily be reversed.

Euro Breaks Record Losing Streak; Climbs to $1.06 – Financial Times (subscription)

Having suffered its worst run of trading since becoming the eurozone’s official accounting currency in 1999, the euro is climbing today on the back of some welcome political news from its two most important member states.

Yuan on Track for Worst Monthly Performance in More Than a Year – Wall Street Journal (subscription)

Currency weakened 2.6% against the US dollar in August 2015.

To Gauge the Mood on Donald Trump’s Policies, Look to the Yen – Wall Street Journal (subscription)

The Japanese currency has been depreciating against the dollar since the US presidential election.

Flash Crash Trader Fine Endorsed by US Court – Profit & Loss

A US district court judge has entered a consent order brought by the US Commodity Futures Trading Commission against UK-based trader Navinder Singh Sarao.

Nex: Reasons for Optimism – Profit & Loss

The really crucial element in EBS’ success will be driven by the other, newer, channels – they are probably going to be the engine room of serious growth.

US Banks Close Rupee Exchanges After Large Bills Ruled Illegal – Bloomberg

JPMorgan, Citigroup say vendors have made rupee unavailable.

Egyptian Banks Have Attracted $3 Billion Since Currency Float – Reuters

Egyptian banks have attracted some $3 billion since Egypt took the dramatic step of floating its pound earlier this month, central bank sub-governor Tarek Fayed.

Regulatory News

FCA: Asset Managers Need to Improve Cost Control in FX – FX Week (subscription)

Asset managers need to improve cost control and transparency around the execution of foreign exchange transactions, says the Financial Conduct Authority in a report.

FSB Targets Mid-2017 for Clearing Resilience Rules – FOW (subscription)

The Financial Stability Board has said it will propose guidance on recovery and resolution plans for clearing houses by the middle of 2017 following a meeting of members.

Key Lawmaker Warns CFTC Against Last-Minute Push on Controversial Rules – Financial Times (subscription)

Michael Conaway, chairman of the US House agriculture committee, warned the Commodity Futures Trading Commission not to push through two controversial rules before a new CFTC chairman has been installed by President-elect Donald Trump.

House GOP Bill Includes Measures That Would Micromanage the SEC, Official Says – Wall Street Journal (subscription)

Choice Act could be the starting point for GOP-led effort to dismantle Dodd-Frank.

Schumer Says He Can Block Trump’s Efforts to Repeal Dodd-Frank – Bloomberg

Incoming Senate Minority Leader Chuck Schumer, drawing a line in the sand for the next administration, said he has the votes to stop President-elect Donald Trump from repealing the Dodd-Frank Act and “the rules we put in place to limit Wall Street.”

Bundesbank Chief Attacks Brussels for Not Enforcing Eurozone Rules – Financial Times (subscription)

The head of Germany’s central bank has accused Brussels of giving up on enforcing the eurozone’s economic rules, in a powerful attack on the European Commission.

Sexton New Head of NFA – Profit & Loss

Thomas Sexton has been named as the National Futures Association’s new president and CEO, succeeding Dan Roth, who is retiring.

Esma Outlines MiFID II Data Disaggregation Regime – FOW (subscription)

In the Q&A document, the regulator detailed that disaggregation will be required at the level of each trading venue for which the operator has authorisation under MiFID II.

Company News

Brown to Run GTX SEF – Profit & Loss

GTX, the institutional arm of Gain Capital, says it has appointed Ed Brown as CEO of GTX SEF, its swap execution facility.

ICBC First Chinese Bank to Use Thomson Reuter’s Electronic Trading – FX Week (subscription)

TR’s FX solution will make it easier for ICBC to quote prices to its customers throughout Asia.

Swift Seeks to Add More Services to Stay Engaged with Clients – FX Week (subscription)

Head of securities and FX says value-added services will be a focus in 2017.

Market Savvy

Brexit Costs Send Pound to New Zealand Dollar Towards Historic Lows – Exchange Rates

The GBP to NZD exchange rate nosedived by nearly two cents as Germany warned Prime Minister Theresa May that the UK may be required to continue paying into the EU for another 10 years after ‘Brexit’.

China, Turkey FX Extend Losses to Buck Firmer Emerging Markets – Reuters

Emerging stocks and currencies struggled higher as the post-US election rise in the dollar and US yields lost some steam, though China’s yuan and Turkey’s lira extended losses, the former approaching eight-and-a-half year lows.

Will GBP/AUD Extend Recent Best Run? – Exchange Rates

The British pound/Australian dollar exchange rate saw a steady rise last week despite foreign exchange markets having to continually adjust to the changing global political landscape.