Top Headlines

BNY Mellon Facing Further FX Class Action – Profit & Loss

BNY Mellon is facing further legal action over activities in its FX business as a class action suit has been filed in New York claiming it “charged excessive rates and mark ups” on ADR conversions.

Dollar Bounce Short-Lived as Euro Stays Above $1.20 – Reuters

The dollar edged down having recovered modestly the previous day from a three-month low, with upbeat US data and minutes from the Federal Reserve unable to lift pressure from the struggling currency.

Dollar Bulls Ready for Rocky Ride in 2018 – Financial Times (subscription)

Euro investors see an easier year ahead as the dollar faces headwinds.

Sterling Slips from Three-Month High on Lack of New Catalysts – Reuters

Sterling slipped from a three-month high above $1.36, with currency traders cautious about pushing the pound too far without any new catalysts.

Merrill Lynch Bars Trading of Bitcoin Fund, Futures – Wall Street Journal (subscription)

Merrill Lynch has blocked clients and financial advisers who trade on their behalf from buying bitcoin, citing concerns over the cryptocurrency’s investment suitability.

UK Thinks Barnier Bluffing on No Brexit Deal for Banks – Bloomberg

Prime Minister Theresa May believes Michel Barnier is bluffing when he says there will be no special deal for financial services, officials said, as the UK prepares to negotiate its post-Brexit ties with the European Union.

EBA Plans Restructure to Keep Staff Ahead of Brexit – Financial News

The European Banking Authority plans to kick off a large-scale restructuring next month in a bid to persuade its London-based staff to relocate with it to Paris after Brexit.

India, Thailand Risk Landing on Currency Manipulator Watchlist – Bloomberg

India and Thailand may have to give freer rein to the rupee and baht this year to avoid triggering US accusations that they’re manipulating their currencies to support exports.

What Happened on December 25? – Profit & Loss (subscription)

Whatever it was, we probably need to do something about it, because I can’t see how it can be a good thing when the world’s most liquid currency pair decides to spend four hours trading (very occasionally I am told) some 350 points below where it closed.

Regulatory News

MiFID II’s First Day Comes Off Without Glitches, Regulator Says – Bloomberg

The first day of MiFID II for European Union markets wasn’t quite the disaster many in the financial industry had predicted, according to the bloc’s top markets regulator.

China Central Bank Can Tell Local Governments to Regulate Bitcoin Miners’ Power Use: Source – Reuters

China’s central bank told a top-level government internet finance group that the monetary authority can tell local governments to regulate the power usage of bitcoin miners to gradually reduce the scale of their production, a source said.

Company News

NEX FX Volumes at Lows: CME on the Rise – Profit & Loss

There has been contrasting news from two major FX trading venues with NEX Markets reporting a low for average daily volume (ADV) on its spot FX platform, but CME recording good growth.

Bitcoin Price Is a Distraction, Says Big Technology Investor – Financial Times (subscription)

Silver Lake’s Glenn Hutchins is more excited about opportunities in cryptocurrency system.

Bitcoin May be King, But Ripple Dark Horse in Crypto Race – Reuters

Bitcoin was the star of the white-knuckle ride that cryptocurrencies offered in 2017 but lesser-known names, such as Ripple and Ethereum, are seen gaining prominence in 2018.

Market Savvy

China’s Yuan Setting Is Highest Since May 2016 – Wall Street Journal (subscription)

China’s central bank guided the yuan to its highest level against the US dollar in more than a year and a half, following the dollar’s overnight slide against global currencies.

Angola Plans to Ditch Currency Peg to Dollar, Restructure Debts – Financial Times (subscription)

Angola has announced plans to ditch its currency peg to the dollar and restructure its debts, becoming the latest previously high-flying African country to bite the default bullet.