Top Headlines

Cartel Members Indicted in US – Profit & Loss

The US Department of Justice has announced that a Federal grand jury has returned an indictment against three members of the infamous Cartel chat room that allegedly conspired to manipulate FX markets.

Dollar Edges Up, Markets Await Trump News Conference – Reuters

The dollar edged higher against a basket of major currencies ahead of a news conference by US President-elect Donald Trump in which he is expected to spell out more about his plans for the economy.

Pound Slips on Swelling UK Trade Deficit, Pushes FTSE to New High – Financial Times (subscription)

Sterling has accelerated its declines after the latest set of UK trade numbers showed a £2.6bn increase in the country’s deficit in November.

Enough Misery from the Currency Markets: Even Without Trade Deals Brexit Wouldn’t Be a Disaster – Telegraph (subscription)

The currency markets have proved shockingly irrational in recent months.

China’s Central Bank Launches Spot Checks on Bitcoin Exchanges – Reuters

China’s central bank said it launched spot checks on major bitcoin exchanges in Beijing and Shanghai, knocking the price of the cryptocurrency down by more than six percent.

China’s Currency Policies Need an Overhaul – Bloomberg

The irony of the yuan rally that took bears by surprise last week was that the surge came just days before China announced that its foreign currency reserves shrank by $41 billion in December.

Speculative FX Demand Hurting the Lira: Erdogan Aide – Anadolu Agency

The recent demand for the US dollar against the Turkish lira comes amid shallow market conditions and appear to be an overly speculative move, a top advisor to President Recep Tayyip Erdogan said.

Turkish Lira Hits Record Low – Financial Times (subscription)

The Turkish lira has hit a record low, weakening beyond 3.8 to the dollar for the first time as investors continue to fret over the country’s economic and political outlook.

Analyst Who Foresaw Yen Fall Sees More Pain as 125 in Sight – Bloomberg

The strategist who defied Japan’s biggest investors to correctly predict the yen’s weakness in 2016 is forecasting more losses for the currency in the new year.

Peso Sinks to Fresh Low as Mexico Woes Mount – Financial Times (subscription)

Battered currency has already shed 4% in 2017 amid trade fears.

Czexit Looms for the Bottled-Up Koruna – Financial Times (subscription)

Hedge funds see chance to buy currency in anticipation of rally after controls are lifted.

Regulatory News 

Banks Forced to Cover Tracks of China’s Forex Regulator – Reuters

China’s forex regulator is telling banks to keep its instructions about curbing capital outflows secret and to ensure that research analysts keep any negative views about the yuan’s prospects to themselves, several bankers said.

AG-Designate Sessions Has Been Tough on Financial Crime – The Hill

The Senate Judiciary Committee needs to determine if Sen. Sessions will continue this decades-long fight against financial crimes and demand for banking accountability.

Croatia Closer to Euro Currency – New Europe

The Croatian government and the country’s national bank HNB have reportedly agreed that they will prepare a common strategy with the goal of introducing the euro as soon as possible.

Thai Central Bank Has FX Buffers to Handle Volatility – Reuters

Thailand has enough foreign exchange reserves to handle market volatility if it flares up again this year, the head of the country’s central bank said.

Company News

Former CFTC Commissioner Chilton Leaves DLA Piper – Profit & Loss

Bart Chilton has left his position at law firm DLA Piper, where he was a senior policy advisor.

Best Asian FX Forecaster Fears Trump Risk More Than China: Q&A – Bloomberg

Standard Chartered sees China as less of a threat to Asian exchange rates this year as rising US borrowing costs and uncertainty over President-elect Donald Trump’s trade policies take center stage.

Bitstamp Adds Ripple Currency XRP to Trading Platform – Reuters

One of the leading European-based bitcoin exchanges is adding another virtual currency to the bitcoins already traded on its platform.

Market Savvy

Dollar Rises Amid Emerging Market Concerns – Wall Street Journal (subscription)

Political and economic concerns continued to pressure emerging market currencies. 

C$ Ends Slightly Stronger as Housing Starts Jump – Reuters

The Canadian dollar ended a touch stronger against its US counterpart as a jump in housing starts offset a drop in oil prices and caution as hearings for US President-elect Donald Trump’s Cabinet nominees began.

Trump Uncertainty Causes Volatility in AUD/USD Exchange Rate – AUD News

The AUD/USD exchange rate fluctuated overnight as markets became increasingly dovish towards the incoming US President, Donald Trump.