Top Headlines

CFTC Hands SocGen Fine for FX Reporting Failure – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has fined Société Générale $450,000 for failures in the reporting of certain FX transactions.

Pound Losses Deepen After Shock Industrial Output Decline – Financial Times (subscription)

The pound has fallen 0.6 per cent against the dollar, marking its worst run since mid-November after a grim set of numbers on the state of UK industry were released. 

Dollar Declines with Bond Yields Before Fed Meeting – Reuters

The US dollar declined as Treasury bond yields eased and investors looked ahead to next week’s Federal Reserve meeting, when the US central bank is expected to raise interest rates but adopt a cautious tone on the economy.

Mobius Sees Weaker Dollar Next Year as Trump Boosts Industry – Bloomberg

The greenback is set to weaken as the US government under Donald Trump increases spending on defense and infrastructure, Mobius, executive chairman of Templeton Emerging Markets Group, said.

China’s Yuan Pessimists Are Multiplying – Bloomberg

Individuals and households are the biggest threat to the yuan now, because they can easily be influenced by short-term volatility, according to Xia Le, a Hong Kong-based economist at Banco Bilbao Vizcaya Argentaria.

Emerging Markets Rise Before ECB Decision Amid Export Outlook – Bloomberg

Gains for Brazil’s real, South Africa’s rand and Turkey’s lira lifted an index of emerging-market currencies for a fourth day. Stocks advanced on optimism European policy makers will extend a stimulus program likely to boost demand for exports.

Poll: Asia FX Pessimism Ebbs on Pause in Dollar Rally; Yuan Bearish Bets Near Two-Month Low – Reuters

Sentiment towards emerging Asian currencies became less bearish in the last two weeks, a Reuters poll showed, as the dollar pulled back from a sharp rally that followed Republican Donald Trump’s surprise win in last month’s US election.

Surge in Dollar Provokes Jitters in Emerging Markets Around World – The New York Times

Emerging market countries and corporations that have been binging on cheap dollar debt for more than a decade now face a spike in servicing costs and elevated debt burdens.

One Month On: How Markets Have Performed Since Trump’s Victory – Financial Times (subscription)

It’s a case of bad things come in threes for gold, the Japanese yen and government bonds, which have been dumped over the past month as investors spurn haven assets.

Currency Forex Grows Up – Institutional Investor

Pension and sovereign wealth funds across the globe are refining their foreign exchange risk management.

Egypt’s Sisi Says Pound Will Strengthen Over Coming Months – Reuters

Egyptian President Abdel Fattah al-Sisi said that the country’s currency, the pound, was not valued fairly against the dollar but the exchange rate would reach equilibrium after a few months.

Zimbabwe ‘Has the Strongest Currency in Africa’: State Media – News 24

Sounds unbelievable – but that’s what the official Herald newspaper claimed hours after President Robert Mugabe resolutely avoided the vexed topic of bond notes in his State of the Nation Address.

It’s the Blockchain Not the Bitcoin – The Star

In many countries, Malaysia included, bitcoins are not accepted as a fiat currency.

Regulatory News

Large International Banks Look to Paris in Wake of Brexit – The Trade

French regulator warns of mounting competition between countries and regulators as large banks look to depart from London.

Mixed Views on Dodd-Frank Rollback – Risk (subscription)

No need to dump central clearing and electronic trading mandates, market participants say.

‘Bitcoin is Legal’, Says Russian Federal Tax Service – Econo Times

The Federal Tax Service of the Russian Federation released a document last week describing the status of digital currency such as bitcoin in the country.

Company News

CTAs Continue to Struggle in Tough Environment – Profit & Loss

Data from Société Générale Prime Services reveals that the majority of its CTA indices show that these firms continued to post negative returns during November.

Icap Hosts its Annual Charity Day – Profit & Loss

Icap held its 24th annual global Charity Day today, with 100% of company revenues and commissions for the day being donated to a selection of over 200 charities around the world.

Spot FX Blockchain Clearing Firm FXCH Raising €8.5 Million Including Seedrs Crowdfunding – Leap Rate

Leap Rate has learned that Ireland-based FX central clearing provider FXCH, which uses Blockchain to settle FX trades, is trying to raise €8.5 million (USD $9.1 million), at a pre-money valuation of €20 million.

Market Savvy

New Zealand Dollar Jumps, Euro Firms Into ECB – Reuters

New Zealand’s dollar was the biggest gainer among major currencies, rising 0.7 percent after a speech by Reserve Bank Governor Graeme Wheeler added to speculation the bank would raise interest rates next year.

Turkish Lira On Course for Best Week Since 2011 – Financial Times (subscription)

A rally in the Turkish lira is gaining momentum after patriotic calls from the country’s president for citizens to step up the battle against foreign exchange “speculators”.

Brazil Real Up on Easing Political Concerns, Global Risk Appetite – Reuters

The Brazilian real strengthened as concerns eased that the ouster of Senate President Renan Calheiros could potentially delay the approval of fiscal measures.