Top Headlines

Dollar Bounce Stalls as Alabama Outcome Adds Uncertainty – Reuters

A two-week rally in the dollar stalled after a Democrat won a bitter fight for a US Senate seat in deeply conservative Alabama, injecting fresh uncertainty about the outlook for the greenback in the coming months.

Traders See No End to the Dollar’s Pain in 2018 – Bloomberg

For the almighty dollar, 2017 has been nothing short of abysmal. Next year might be even worse.

Sterling Edges Higher as UK Wage Growth Picks Up Speed – Reuters

Sterling edged up just a touch as data showed British pay had picked up a little speed in the three months to October, but employment fell again, suggesting employers are turning more cautious as Brexit nears.

Bitcoin Hits Another Record High in March Towards $20,000 – Reuters

Virtual currency bitcoin hit another all-time peak, two days after the launch of the first ever bitcoin futures on a US exchange and ahead of the start of another futures contract next week, as investors grew optimistic that the $20,000-mark is within reach.

Bank of Japan Normalisation: Too Soon to Consider? – Financial Times (subscription)

The market is for the moment buying the storm-in-a-teacup argument. The yen has dropped more than two per cent in the past 10 days, back to mid-November levels.

Hate the Swiss Franc, Love the Dollar in 2018? Take a Number – Bloomberg

There’s a favorite currency trade emerging on Wall Street: a long dollar, short Swiss franc position for 2018.

Emerging Markets Shrug Off Crises for Best Gains in Eight Years – Bloomberg

2017 is set to go down as the year when easy monetary policy and budding global growth came together to deliver blockbuster returns for the world’s emerging markets.

Brexit Exodus by City Banks Set to Fall Short of Fears – Financial Times (subscription)

FT research shows six per cent of staff might move, despite claims of tens of thousands.

Sustaining the Momentum – Profit & Loss (subscription)

Since launching its initial suite of FX products four years ago, SGX has reported consistent growth in this business segment. But can the exchange sustain the momentum going forward?

Regulatory News

‘Shelby Mafia’ Is Helping Trump Deregulate Wall Street – Wall Street Journal (subscription)

The Trump administration is picking people with ties to Senator Richard Shelby for key financial roles as it works to roll back postcrisis rules.

CFTC Allays Concerns Over CTA Registration – FOW (subscription)

The FIA were concerned separate research payments would render members as CTAs in regulator’s eyes.

Australian Central Bank Mulls Electronic Banknotes – Financial Times (subscription)

RBA studies blockchain technology but dismisses bitcoin fever as ‘speculative mania’.

South Korea Considers Capital Gains Tax on Cryptocurrencies – Financial Times (subscription)

South Korea is considering taxing capital gains from cryptocurrency trading as fevered demand in the country has driven traders to pay premiums of more than 20 per cent over international rates for bitcoin.

Company News

Higher Margins Set for CME’s Soon-to-Launch Bitcoin Futures – Bloomberg

Margin requirements for CME Group bitcoin futures will be 47 percent next week when the contracts start trading, an increase from the previous plan.

Bitcoin Bears Will Soon Be Able to Short Futures Through Interactive Brokers – Bloomberg

Interactive Brokers Group plans to let bitcoin bears bet against the digital currency’s recently debuted futures contracts.

Deutsche Börse Exchanges Return to Normal After Trading ‘Issues’ – Financial Times (subscription)

Deutsche Börse said that “issues” in its underlying trading technology had caused the open of trade on its futures and options exchange to be delayed, but that its large equities market was able to open as usual.

Citi and JP Morgan Back MarkitSERV Rival – Risk (subscription)

Big dealers revealed as first bank clients of swaps start-up truePTS days after legal settlement.

Market Savvy

US Political Woes Lift Emerging Stocks, FX Ahead of Fed – Reuters

Emerging stocks and currencies sailed higher ahead of an expected Federal Reserve interest rate hike, lifted by US assets nursing losses after President Donald Trump’s Republicans suffered an election defeat.

Indian Rupee Dips Despite Inflation Spike, Other Asian Currencies Eye Fed – Reuters

The Indian rupee dipped nearly quarter of a percent, despite a sharper-than-expected jump in consumer inflation which breached the central bank’s four percent target.

Pakistan Economy Falters Over Political Concerns – Financial Times (subscription)

The Pakistani rupee has fallen more than five per cent against the US dollar in the past three days, in an apparent attempt by the finance ministry to alleviate its worsening current account deficit.