Top Headlines

Dollar Climbs as Attacks Subdue Euro, BOJ Saps Yen – Reuters

The dollar climbed back towards a 14-year high as the yen fell after the Bank of Japan held policy steady and fallout from attacks in Germany and Turkey subdued the euro.

CFTC’s Massad, Giancarlo to Address Swaps Conference Two Days Before Inauguration – Profit & Loss

Two days before Inauguration day, Timothy Massad, chairman of the US Commodity Futures Trading Commission (CFTC), and CFTC commissioner Christopher Giancarlo will be keynoting the seventh annual SEFCON VII conference, which has become the largest conference for the US swaps trading market.

Japanese Regulator Hits Out at US Cross-Border Swaps Proposal – The Trade

Japan’s financial regulators believe a US proposal to expand its swaps rules to non-US persons could be damaging.

Euronext in Talks to Buy French Clearing Business from LSE – Financial Times (subscription)

Deal may help smooth path for Deutsche Börse deal with London counterpart.

Brexit Uncertainty Keeps Sterling Close to One-Month Lows – Reuters

Sterling dipped close to one-month lows against a broadly stronger dollar on Tuesday, kept under pressure by uncertainty over the process by which Britain will leave the European Union.

Deutsche Bank’s Five Reasons Why the Pound is Overvalued – Bloomberg

It’s time to short the sterling, according to the German bank.

Political Risks Leave Euro-Pound Analysts Most Divided on Record – Bloomberg

For analysts trying to plot the course of the pound against the euro in 2017, the key decision is judging which side of the English Channel will see greater political turbulence.

To Let It Fall or Not? Beijing Faces the Great Yuan Puzzle – South China Morning Post

As the yuan continues to depreciate against the dollar, opinion is widening over whether to prop it up – at great expense to China’s reserves – or let it fall, at the cost to its reputation.

Don’t Panic, Ringgit Will Bounce Back: Malaysian Minister – Channel News Asia

The ringgit, which has weakened along with other emerging market currencies against the US dollar, has the strength to bounce back, said Malaysia’s Second Finance Minister Johari Abdul Ghani.

Asia Faces Flight of Funds as Greenback Strengthens – Straits Times

Asian currencies have weakened considerably against the surging greenback in the wake of the United States Federal Reserve’s decision last week to raise a key interest rate for the first time in a year.

2016’s Biggest One-Day Market Wobbles – Financial Times (subscription)

China’s benchmark index, S&P futures and the pound were among the most notable plunges.

2017: The Biggest Themes in FX – Euromoney

Volatile markets, political noise and a culture revamp will be the top themes in foreign exchange for 2017, predict currency experts.

Regulatory News

FX Industry to Face Deadline Challenges in 2017 – Profit & Loss

FX market participants face numerous challenges next year in adhering to regulatory deadlines, according to experts on a recent Profit & Loss webinar.

Companies Face Delays Getting Cash Out of China – Wall Street Journal (subscription)

New regulations aimed at slowing the yuan’s decline create confusion for multinationals.

Esma Launches Trade Repositories Consultation – The Trade

Esma’s latest consultation is in response to a request from the EC to formulate an EU regulation on fees for trade repositories.

As Currency Data in Response to RTI Query Confounds, RBI Steps in to Clarify – Bloomberg

Currency data provided by the Reserve Bank of India in response to a right to information (RTI) query has sparked off another round of head-scratching from analysts, prompting the central bank to step in with an explanation.

Indonesia’s Central Bank Revives Plan to Cut Three Zeroes from Rupiah – Bloomberg

Indonesia’s central bank is reviving a plan to redenominate the currency of Southeast Asia’s biggest economy despite the threat of market turmoil as the US steps up the pace of interest-rate increases.

Bank of Israel’s Love of Dollars Inflicts Heavy Tax on Israelis – Haaretz

The central bank buys dollars and maintains near-zero interest rates to protect exporter and producer profits.

Company News

Thomson Reuters Trading Head Joins Board of FX Analytics Venture – Financial News (subscription)

Thomson Reuters’ co-head of trading has joined the board of a foreign exchange analytics venture founded by two former Morgan Stanley managing directors.

Goldman, JPMorgan to Invest in Blockchain Startup Axoni: Sources – Reuters

Goldman Sachs Group, JPMorgan Chase & Co and a group of other financial institutions including inter-dealer broker Icap’s venture arm are finalizing an investment in blockchain startup Axoni, people familiar with the deal said this week.

Ukrainian Exchange Launches Bitcoin Futures Contracts Trading – Finance Magnates

This addition of bitcoin futures contracts to the venue is due to high interest in cryptocurrency in Ukraine.

Market Savvy

Ringgit Hits Lowest Since 1998, Asia FX Dented by Fed Outlook – Reuters

The Malaysian ringgit slipped to its weakest level in nearly 19 years versus the dollar as prospects of a faster pace of US interest rate rises in 2017 kept the greenback well bid.

US Dollar Closes Higher on Taipei Forex – Focus Taiwan

The US dollar rose against the Taiwan dollar, gaining NT$0.003 to close at NT$31.970 as the greenback extended its momentum from a week earlier after the US Federal Reserve cut its key interest rates, dealers said.

South African Rand Steadies Against Pound, Are Further Losses Ahead? – Exchange Rates

GBP/ZAR had fluctuated widely throughout the day but by the end of the European session was trading almost -1% down.