Top Headlines

Citi Says Behaved Appropriately in Sterling ‘Flash Crash’ – Reuters

Citi said that its trading operations functioned appropriately in a thin and illiquid market during October’s “flash crash” in sterling, responding to a Financial Times report that a trader at the US bank exacerbated the pound’s fall. 

China November Forex Reserves Fall More Than Expected to Lowest in Nearly Six Years – Reuters

China’s foreign exchange reserves fell far more than expected in November to the lowest level in nearly six years, as authorities struggled to stem capital outflows and shore up the sliding yuan in the face of a relentlessly rising dollar.

The Pros and Cons of a Renminbi Devaluation – Financial Times (subscription)

Depreciating the currency should have benefits, but it will cause pain for owners of dollar debt.

Dollar, Euro Tread Water as ECB Meeting Comes Into View – Reuters

The euro and dollar were steady as traders paused for the outcome of Thursday’s European Central Bank policy meeting, which may set the tone for currency markets after the sharp moves in the wake of last month’s US election.

Sterling Slips from Two-Month High as Government Sticks to Brexit Timetable – Reuters

Sterling slipped from a two-month high against the dollar after the British government asked parliament to respect its timetable for leaving the European Union, dampening investors’ hopes that Brexit might be delayed.

Mexican Peso Hits Two-Week High – Financial Times (subscription)

The Mexican peso hit a two-week high against the US dollar, leading a broad recovery in emerging market currencies as a stable dollar and US bond yields lifted risk appetite.

Thomson Reuters FX Volumes Up in November, But Underperforms Industry – Profit & Loss

Thomson Reuters has reported a month-on-month decline in overall FX volumes but a rise on spot activity – albeit at a lower pace than other FX trading venue providers.

Bloomberg Launches Streaming NDFs – Profit & Loss

Bloomberg has launched executable streaming non-deliverable forwards on FXGO, its global foreign exchange trading platform.

When the Dollar’s Strength Is a Weakness – Stratfor (subscription)

The strengthening of the world’s reserve currency will have global repercussions.

Turks Urged to Trust in Lira to Defeat ‘Tyranny of Dollar’ – Financial Times (subscription)

Emerging markets across the globe are already suffering because of an expected rise in US interest rates — and few are feeling the pain more than Turkey.

Regulatory News

Massad to Customers: Days of Guaranteed Liquidity Are Over – Profit & Loss

In a speech in New York, Timothy Massad, chair of the US Commodity Futures Trading Commission (CFTC) argued that the changing nature of liquidity is not principally caused by regulation.

Former US Attorney Debra Wong Yang Being Considered to Lead SEC – Wall Street Journal (subscription)

Trump met with her to discuss Securities and Exchange Commission chairmanship.

FCA Targets “High Risk” CFD Industry – Profit & Loss

The UK’s Financial Conduct Authority (FCA) has proposed stricter rules for firms selling contract for difference (CFD) products to retail customers to improve standards across the sector and ensure consumers are appropriately protected.

Egypt, China Sign Currency Swap Deal Worth 2.62 Billion USD – Xinhua

Egypt and China signed a currency swap agreement worth 18 billion yuan (about 2.62 billion US dollars) to bolster economic activities in the north African country.

Central Banks of Turkey, Russia Plan to Use National Currencies in Bilateral Trade – Sputnik News

Central banks of Turkey and Russia have begun work on technical aspects of using national currencies in bilateral trade, Turkish Prime Minister Binali Yildirim told Sputnik.

Company News

FastMatch Opens Up Algo, TCA Tools to All Clients – Profit & Loss

FastMatch has made its proprietary algorithmic and transaction cost analysis (TCA) services available to all its subscribers.

City Financial Hires Four from Fortress – Profit & Loss

Fund manager City Financial has hired four executives from Fortress Investment Group’s Liquid Markets business.

Market Savvy

South African Rand Gains on Dollar Despite GDP Missing Estimates – Nasdaq

South Africa’s rand has advanced on the US dollar, despite a weaker-than-expected rise in South African GDP, as some emerging- market currencies make up lost ground in the wake of a weakening greenback.

Lira at One-Week High; Fragile Emerging Assets Advance Further – Reuters

The Turkish lira firmed 0.7 percent to one-week highs, lifted by authorities’ steps to stem the currency’s weakness while emerging stocks rose for the third straight day on the back of a stable dollar.

Ringgit Ends Higher Versus Greenback in Sync with Regional Peers – The Malay Mail

The ringgit closed higher against the US dollar in line with regional currencies as market players view the greenback’s strengthening as excessive, dealers said.