Top Headlines 

Citi Foreign Exchange Dealer Pleads Guilty to US Rate-Fixing Charge – Reuters

A foreign exchange dealer for Citigroup who specialized in central and eastern European, Middle Eastern and African currencies has pleaded guilty to conspiring to fix currency prices.

FX ‘Cartel’ Traders Face Tough Fight on US Extradition – Bloomberg

Three British traders charged in New York with rigging foreign-exchange rates may struggle to avoid being sent to the US, as America’s appetite for extraditing UK targets shows no sign of waning, according to lawyers.

“Confluence of Factors” Behind Sterling Flash Crash: BIS – Profit & Loss

The Bank for International Settlements’ (BIS) Markets Committee has released its analysis of the 7 October 2016 “flash event”, arguing that a range of factors rather than a single driver catalysed the event.

Sterling Volatility at Two-Month High Ahead of May’s Brexit Speech – Financial Times (subscription)

Not that traders have little faith in Theresa May at the moment, but news that the prime minister will make a speech on the government’s plans for Brexit negotiations next week has sent expectations of big swings in the pound to their highest level in two months.

Dollar Stabilises After Falls, Weaker Yen Boosts Japanese Stocks – Financial Times (subscription)

Asian stocks were mixed in the wake of a weaker dollar and declines on Wall Street overnight as investors continued to assess the fallout from Donald Trump’s irksome press conference on Wednesday.

China Slap at Yuan Shorts Barely Tickled Bigger Bears – Reuters

China may have put a few short-term currency speculators to the sword last week, but long-term investors betting against the yuan are still standing and they carry much more firepower.

Mexico Peso Rebounds from Record Low, Brazil Stocks Jump – Reuters

Mexico’s peso strengthened, rebounding from a fresh historic low hit in the previous session after President-elect Donald Trump warned US auto companies would face a high tax for products made south of the border.

Some Peso Traders Want Mexico to Buy Twitter and Shut It Down – Bloomberg

Instead of spending its precious reserves to defend the peso, Mexico should just buy Twitter Inc. – at a cost of about $12 billion – and immediately shut it down.

Erdogan Calls on Central Bank to ‘Thwart’ FX Traders, Stoking Lira Rally – Financial Times (subscription)

Turkey’s president Recep Tayyip Erdogan has been in typically combative mood today, comparing foreign exchange traders to terrorists targeting the country after a record busting slide in the lira.

Has it Become Harder to Find Alpha in FX? – Profit & Loss (subscription)

It’s not necessarily that extracting alpha in FX has become harder, but rather that the way it needs to be extracted is changing, said panellists at Profit & Loss’ Forex Network Chicago conference.

Mood Swings Show Perils of Investing in Trump Trade – Financial Times (subscription)

Market prepares for an episode in which all that is certain is uncertainty.

US Derivatives Market Will Trump Post-Brexit Europe – The Trade

With Europe’s derivatives clearing landscape unclear following the UK Referendum, the US market could be the next destination for business.

Regulatory News

Wall Street Gets Early Win as House Tries to Ease Swaps Rules – Bloomberg

Republican lawmakers who want to rein in Wall Street’s watchdogs aren’t waiting around for Donald Trump.

House Votes to Require More Cost Analysis of SEC Rules – Wall Street Journal (subscription)

Bill is among first of several deregulatory measures congressional Republicans are expected to advance this year.

PBOC Said to Boost Yuan Curbs as Banks Told to Balance Flows – Bloomberg

China has asked some banks to stop processing cross-border yuan payments until they balance inflows and outflows, people familiar with the matter said, as authorities step up a campaign to curb a record amount of money leaving the nation in the local currency.

Russian Finance Minister Says No Need for Strong Rouble Growth – Reuters

Finance Minister Anton Siluanov said he did not think strong growth was needed for the rouble.

Nigeria Central Bank Won’t Devalue Naira, Traders’ Union Says – Bloomberg

The Central Bank of Nigeria has no plans to devalue the naira, the head of a money changers’ body said after meeting policy makers.

Company News

Pimco Bets Pound Plunge Is Far From Over as Brexit Clouds Gather – Bloomberg

No happy new year for the battered pound, if you ask Pacific Investment Management Co.

Moscow Eyes US Liquidity with CFTC Application – FOW (subscription)

The Moscow Exchange has applied to the US derivatives regulator to be recognised as an equivalent foreign exchange, part of the Russian market’s plan to attract more overseas liquidity.

Colt Grows IQ Network Service in Singapore, Hong Kong – Waters Technology (subscription)

The expansion is part of Colt’s plan to invest significantly in Asia over the next three years.

Market Savvy

Australian Dollar Eyes Best Week Since June, Shares Down 1% – Financial Times (subscription)

Much like summer temperatures across the continent, the dollarydoo is running hot. 

Singapore Dollar Bounces to One-Month High Amid Greenback’s Trump Slump – CNBC

The Singapore dollar climbed to a one-month high this week as disappointment with US President-elect Donald Trump’s first press conference since July decked the greenback.

Kenyan Shilling to Ease, Nigerian Currency to Strengthen – Reuters

Kenya’s shilling is seen weakening against the dollar in the next week to Thursday, while the Nigerian naira is expected to strengthen, traders said.