Top Headlines

Dollar Edges Up from 3½ Month Lows; Euro Pauses After Rally – Reuters

The dollar inched higher against a basket of major peers as data showing slower US jobs growth did little to dent expectations for further Federal Reserve interest rate increases this year.

Sterling Edges Down as UK Cabinet Reshuffle Eyed – Reuters

Sterling edged down against the dollar as investors eyed a reshuffle of Britain’s cabinet, though most said that bar any major surprises, the changes would be unlikely to significantly move the pound.

Futures Traders Boost Bets on Euro Rise to Highest Since May 2007 – Financial Times (subscription)

Hedge funds and other speculators are betting on further gains for the euro after the common currency enjoyed its performance since 2003 last year.

London May Be Key to ‘Hot’ Euro-Yuan Rival to the US Dollar – Financial Times (subscription)

UK capital has the technology and staffing in place, not to mention English law.

2018: The Year of the Brexit Contingency Plan – Financial News

The way the EU has handled negotiations so far is a sure sign that financial services can expect difficulty in maintaining single market access.

What Has the BOE Actually Said About Starting a Cryptocurrency? – Bloomberg

The bank itself says it isn’t, and it may not ever have planned to.

Is This the Future of the FX Market? – Profit & Loss (subscription)

Hopefully this is just a reflection of the first week of the year being short, but there seemed to be sufficient news out to trigger some volatility in FX markets and what we saw was… nothing.

Regulatory News

Swedish Regulator Joins Late Reprieves for Mifid Futures Reforms – Financial Times (subscription)

Sweden’s financial regulator has followed its peers in Germany, the UK and France in dishing out a late reprieve to Nasdaq, its main futures exchange, from applying key parts of the new Mifid II legislation.

An Audience with Andrew Bailey: The Quiet Man Tipped to Replace Mark Carney – Financial News

The head of the UK’s Financial Conduct Authority talks about the changing shape of the organisation, including plans to boost diversity.

Possible Fed Leaks Prompted Warning from Bernanke in 2012 – Wall Street Journal (subscription)

The then Fed leader said lapses were ‘damaging to the reputation and credibility’ of the central bank.

With Dodd-Frank Relief Near, Banks Set Sights on AML – American Banker (subscription)

The Dodd-Frank Act gets more attention when it comes to regulatory burden, but the Bank Secrecy Act and other anti-money-laundering statutes arguably present even more of a compliance challenge for bankers.

Company News

Cox to Join BNP Paribas – Profit & Loss

Profit & Loss understands that Chris Cox has left the Bank of England and is joining BNP Paribas in London.

Game of Sefs: Automation Helps Tradeweb Topple Bloomberg – Risk (subscription)

Buy side’s desire for lighter-touch trading of interest rate swaps propels Tradeweb to top spot by volume.

Bitcoin Finds a Home in Cash-Loving Germany – Wall Street Journal (subscription)

Country is turning into a development hub for virtual currencies and blockchains.

Market Savvy

Won Swings to Loss as Korean Government Warns of Stern Steps – Bloomberg

The won swung to a loss as the South Korean government warned about the currency’s ascent, the latest Asian nation to push back against foreign-exchange strength as investors jump on emerging-market assets.

Most Asian Currencies in Tight Range; Taiwan Dollar Firms to Over Four-Year High – Reuters

Most emerging Asian currencies traded within a tight range, as positive sentiment towards them from a rise in global risk appetite was somewhat offset by a recovery in the US dollar.