Top Headlines

CFTC Fines RBS Over ISDAfix – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has issued an Order filing and settling charges against The Royal Bank of Scotland for attempted manipulation of the ISDAfix benchmark.

Dollar Steadies After Fourth Straight Weekly Fall – Reuters

The dollar steadied after poor wages data pushed back any speculation of a near-term rise in Federal Reserve interest rates and sealed the currency’s fourth straight weekly fall, its worst start to a year in more than three decades.

US Dollar Longs Fall to Lowest Since Late October – Reuters

Speculators reduced bullish bets on the US dollar for a fourth straight week, as net longs fell to their lowest since late October, according to data from the Commodity Futures Trading Commission and calculations by Reuters.

US Protectionism and Deglobalisation Spell Inflation – Financial Times (subscription)

Over the past few weeks, market chatter has been preoccupied with speculation over the dire consequences of a strong dollar in a world of rising US isolationism and protectionism.

Currency Volatility on Trump’s Tweets Fades as Traders ‘Bored’ – Bloomberg

Falling volatility in currency markets suggests traders are getting used to the rhetoric in US President Donald Trump’s tweets.

Sterling Stuck at One-Week Low as MPs Work on Brexit Law – Reuters

Sterling hit a one-week low against the US dollar, adding to a near two percent fall last week, as Prime Minister Theresa May faced challenges over her legislative plan for taking Britain out of the European Union.

Currencies, Bonds Underscore Rising Political Risk: Market Wrap – Bloomberg

Caution crept through European bonds and currencies after prospective French presidential candidate Marine Le Pen unveiled a manifesto pledge to take her country out of the euro, underscoring political risk in the world’s biggest single market.

Schäuble Blames ECB for Euro That is ‘Too Low’ for Germany – Financial Times (subscription)

Intervention follows Trump adviser’s criticism of German trade surpluses.

Switzerland’s Own Trump Risk – Financial Times (subscription)

An actually decent amount of currency intervention and a large trade reliance on the US? Hmmm…

Mexican Peso in Fight-Back Mode as Trump Tweets Lose Shock Value – Financial Times (subscription)

After sinking to yet another low last month, the Mexican peso has been fighting back over the past two weeks as investors focus increasingly instead on the potential fallout from the president’s erratic, fly-by-the-seat-of-his-pants approach to foreign policies.

America’s Asia Allies May Face Biggest Currency Reversal – Bloomberg

Asia’s top two performing currencies so far this year are unlikely to enjoy prolonged gains, with the new US administration’s increasing turn toward protectionism set to hit the economies of South Korea and Taiwan.

Second Set of Volume Data More Mixed for FX Platforms – Profit & Loss

The second group of FX platforms to report average daily volume (ADV) for January has generally matched the month-on-month increase elsewhere but has suffered a year-on-year drop.

The FX Jobs Market: A Game of Musical Chairs – Profit & Loss

As the FX industry continues to evolve, so too does the skill set that employers require and the roles that are available.

Regulatory News

Republican Attack on Fed Casts Doubt Over Global Bank Rules – Financial Times (subscription)

Trump-era co-operation uncertain as congressman criticises deals with ‘foreign lands’.

Interim SEC Boss Goes Beyond Caretaker Role to Revisit Rules – Bloomberg

Republican economist Michael Piwowar plans to use his role as interim leader of Wall Street’s top regulator to lay the groundwork for revamping financial industry rules, possibly including those governing the stock market and corporate disclosures.

Gary Cohn’s Vision for a Regulatory Rethink – Wall Street Journal (subscription)

Trump’s senior economic adviser says big American banks are overcapitalized, over-regulated and restrained from providing credit.

A Tighter Leash on Regulation – Waters Technology

The new administration has made comments about regulation’s future that could put some policies on thin ice.

Switzerland to Amend Banking Rules to Become Fintech-Friendly – Banking Technology

Switzerland’s Federal Council has issued a consultation paper on amendments required to its Banking Act and Banking Ordinance, to create an environment that helps Fintech start-ups thrive in the country.

Company News

Change at the Top of TriOptima – Profit & Loss

Per Sjöberg, CEO of TriOptima, has decided to leave the business to pursue other ventures, according to Nex Group, which owns the business.

AIMA Publishes MiFID2 Guide – Profit & Loss

The Alternative Investment Management Association (AIMA) has published a guide for investment managers to help them understand and implement the requirements of the European Union’s updated Markets in Financial Instruments Directive (MiFID2), which will apply from January 2018.

Iyer Also Exits Amidst Tradebook FX Closure – Profit & Loss

Raj Iyer, who joined Bloomberg Tradebook as FX product manager in New York a year ago, is among the previously reported departures from the group.

UK Property Lures Middle-East Buyers on Pound Brexit Slump – Bloomberg

Middle East investors, benefiting from a weak pound and rising oil prices, increased their spending in UK commercial property even as Brexit prompted buyers from every other region to shrink their spending.

Market Savvy

LatAm Currencies Gain as US Wages Rise Less Than Expected – Reuters

Latin American currencies strengthened after US wages remained nearly flat in January, reducing expectations of a fast interest rate-hike cycle in the coming months.

Lira on Track for Best Week in At Least Two Years – Financial Times (subscription)

The lira rallied more than one per cent on Friday despite more signs of weakness in Turkey’s economy, putting the currency on track for its best week since May 2015 by a comfortable margin and flirting with a five-year record.

Leu Rebounds as Political Tension Eases, Zloty Hits Three-Month High – Reuters

The leu rebounded as Romania repealed a decree on graft that triggered mass protests, while risk appetite rose after weak US wages data cut the odds the Federal Reserve will hike interest rates soon.