Top Headlines

Banks, Brokers Face Post-Brexit Mis-Selling Claims Over FX Options – Reuters

Banks and foreign exchange brokers in Britain face legal claims from small companies which allege they were mis-sold complex currency derivatives that soured when the pound fell after Britain’s vote to leave the European Union, according to court filings and sources familiar with the cases.

Trump’s Tax Talk Lifts the Dollar – Wall Street Journal (subscription)

The dollar rose after President Donald Trump pledged to roll out details of a new tax plan over the next few weeks.

World’s Biggest FX Trader Calls Trump Currency Talk Hogwash – Bloomberg

That’s what Willem Buiter, chief economist at Citigroup, makes of the Trump administration’s comments on exchange rates.

Sterling Rises After UK Data Allays Fears of Slowdown – Reuters

Sterling jumped above $1.25 after data showed UK industrial output rose more than expected in December and the trade deficit was narrower than forecast, allaying fears of a slowdown as the Brexit process gathers pace.

Yen May Be Too Hot to Handle as Abe Meets Trump – Financial Times (subscription)

Planned golf game between leaders this weekend belies tension over the yen-dollar rate.

China Bitcoin Exchanges Halt Withdrawals After PBOC Talks – Bloomberg

China’s three biggest bitcoin exchanges took steps to prevent withdrawals of the cryptocurrency amid pressure from the nation’s central bank to clamp down on capital outflows.

Sympathy for Turkey’s Central Bank Chief, But Investors Unconvinced – Reuters

With the Turkish lira off record lows and central bank borrowing costs at the highest in five years, this week was perhaps a good time for Governor Murat Cetinkaya to convince London’s fund managers he is up to the job.

The Reality Check – Profit & Loss

A regular theme in Profit & Loss over the past two years has been, since the traumatic events of January 15, 2015 around the Swiss franc peg, the return to relationship trading at the expense of the all-to-all model.

Regulatory News

New GOP Memo Targets Stress Tests, CFPB in Dodd-Frank Changes – Bloomberg

There’s a lot for Wall Street to like in House Republicans’ revised plan to roll back financial rules.

Trump and Brexit Pose New Questions for Financial Regulation – Wall Street Journal (subscription)

The EU’s efforts to coordinate global banking rules meet new challenges in Washington and London.

Trump’s Plan to Make Wall Street Unregulated Again Won’t Go Unchallenged – Business Insider

But US President Donald Trump wants to bring it back, betting Americans have short enough memories that they will forget that the new rules were put into place to protect them, however imperfectly, from a repeat of the devastating 2008 financial crisis.

Yellen Urged to Abolish Stress Tests as GOP Pursues Banks’ Wish List – Bloomberg

Republican lawmakers are increasingly going after a target that’s long triggered compliance headaches for Wall Street: the Federal Reserve’s annual assessments of whether banks can survive financial meltdowns.

Firms Wait for Regulatory Guidance on Blockchain Before Taking Action – The Trade

Almost 25% of senior-level financial services professionals have said their firms are waiting for regulatory guidance before taking action on blockchain technology.

Company News

Traiana FX Head Departs – Profit & Loss

Profit & Loss understands that Jill Sigelbaum, head of foreign exchange at Traiana, is leaving the firm.

FXCM Hit by Two Class Action Complaints – FX Week (subscription)

At least 14 law firms start investigating FXCM; CFTC order provides backbone for lawsuits.

CME Group Reports YoY Drop in January FX Options – Finance Magnates

FX options averaged 68,883 contracts per day, which represented a drop of -23.0 percent YoY from 84,900 in January 2016.

Market Savvy

Asian Currencies Slip as Trump’s Tax Plan Pledge Lifts Dollar – Reuters

Asian currencies fell as the dollar gained a lift after President Donald Trump vowed to announce a “phenomenal” tax plan, renewing hopes for the possibility of pro-growth US fiscal policies.

Commodity Currencies Rise on Strong China Trade Data – RTT News

Commodity currencies such as the Australian, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session, after data showed that China’s exports increased at a faster-than-expected pace in January.

Rand Flat After Zuma Address; Stocks Flat in Subdued Trading – Moneyweb

The rand was little changed following President Jacob Zuma’s annual state of the nation speech.