Top Headlines

Dollar Dips Ahead of Trump Inauguration – Financial Times (subscription)

Donald Trump will be sworn in on Friday as the 45th president of the United States of America and investors are waiting to see if the property mogul’s fiscal pledges can boost the world’s biggest economy and what further impact that will have on markets.

Currency Traders See Tug of War Over the Dollar – Financial Times (subscription)

Trump has signalled concern at greenback’s strength, but Yellen has her own worries.

Trump’s Vigorous and Unexpected Impact on Markets – Financial Times (subscription)

Donald Trump’s November victory ignited the steepest rally from election day to inauguration for a first-term president since John F. Kennedy won the White House in 1960.

George Soros Says Trump Will Fail and Market’s Dream Will End – Reuters

The billionaire investor George Soros said on Thursday that global markets will falter given the uncertainty of incoming US President Donald Trump’s policies.

Pound Hit By Disappointing UK Retail Sales Data – Financial Times (subscription)

A round of disappointing data on UK retail sales pushed the pound into the red, offsetting some of its gains from earlier in the week.

Euro Weakens and Four Main Points from Mario Draghi – Financial Times (subscription)

An uneventful press conference by the his usual standards but euro traders seem to have got what they wanted from Mario Draghi in January.

Citi Fined $25 Million for Spoofing US Treasury Futures – The Trade

Citi caught spoofing orders in US treasury and swaps markets after CME inquired about suspicious trades.

Buy Side Calls for Swaps Trading Innovation – Profit & Loss

Representatives of buy side firms called for greater innovation and flexibility around swaps execution at the SefCon VII event in New York on January 18, hosted by the Wholesale Markets Brokers’ Association, Americas, and organised by Profit & Loss.

Stemming the Tide: Six Things China Can Do Next to Curb Outflows – Bloomberg

As cash continues to flood out of China, expectations are growing that the authorities will erect higher barriers.

Canada’s Most Dangerous US Import? Currency Strength – Bloomberg

The correlation between the Canadian and US currencies has swelled in recent months.

Mexican Peso May Slump to Record Low on Trump Trade Moves – Reuters

Mexico’s peso could sink to a record low after Donald Trump assumes the US presidency on Friday if he unveils any aggressive actions that could hammer the exports of Latin America’s No. 2 economy, traders and analysts said.

Aso Says No Need to Fret About Every Currency Move – Nikkei Asian Review

Finance Minister Taro Aso said there is no need to fret about every currency move, but that volatility is undesirable.

Regulatory News

Giancarlo Pledges to Ease Margin Deadline – Profit & Loss

Christopher Giancarlo, soon to be acting chairman of the US Commodity Futures Trading Commission (CFTC), says that the commission will look at ways to ease the March 1 deadline for the new margin requirements for uncleared swaps.

Treasury Nominee Mnuchin Says Long-Term Dollar Strength “Important” – Financial Times (subscription)

Donald Trump’s nominee to serve as Treasury secretary, Steven Mnuchin, said Thursday that he believes the long-term strength of the US dollar is important despite recent comments from the president-elect expressing concerns about the surging greenback.

Trump’s Government: The People Who Will Matter for Markets – Financial Times (subscription)

The spotlight will be on the new president but other figures will also command investors’ attention.

Czechs to Scrap Euro Currency Regime Later this Year – Financial Times (subscription)

The Czech Republic remains on course to abandon its three-year currency regime with the euro later this year, according to the vice president of the country’s central bank.

Russia Could Start Buying FX If Oil Allows But Amount to Be Limited – Reuters

Russia may start buying foreign currency if oil prices allow, the central bank said, but the amount of forex it buys monthly would not exceed additional revenues it gets from oil prices exceeding the level pencilled into budget plans.

Bitcoin Trading Faces Greater Scrutiny in China – Wall Street Journal (subscription)

Regulators say two bitcoin exchanges in Beijing improperly engaged in margin financing. 

Wall Street Regulator Seeks Comment on Blockchain – Wall Street Journal (subscription)

Finra’s report on distributed ledgers outlines applications and potential risks.

Company News

FX Central Tape to Launch End of Q2, But Without Banks – FX Week (subscription)

Participants to move ahead without banks amid rising demand from end-users for transparency and cost analysis.

Currency Volatility Will Be a Key Risk in 2017: Deutsche Bank – CNBC

Global economy is on firmer ground and expects GDP growth of 3.4 percent in 2017.

Market Savvy 

Asian Currencies Firmer After Less-Hawkish Yellen, China GDP – Reuters

Most Asian currencies edged higher after comments from Federal Reserve Chair Janet Yellen sounded less hawkish than some expected and as China’s fourth-quarter economic growth slightly exceeded expectations.

C$ Hits Two-Week Low Against Stronger Greenback – Reuters

The Canadian dollar weakened to a two-week low against its US counterpart, brushing off firm domestic data a day after the Bank of Canada left the door open to cutting interest rates.

Pre-Inauguration Jitters Boost Australian Dollar/US Dollar Exchange Rate; High Turbulence Ahead – AUD News

The Australian dollar/US dollar exchange rate has been positive and stable thanks to a positive response among investors to recent Australian jobs data.