Top Headlines

Dollar Falls as US Tariffs Kick In; US Jobs Data Eyed – Reuters

The dollar fell as US tariffs on Chinese imports took effect, but a muted reaction in currency markets suggested the escalation had largely been priced in by investors focussing on a US jobs report due later in the day.

• US Dollar Falls on Optimism About Europe – Wall Street Journal (subscription)

Dollar’s Allure to Last a Little Longer but Fade Next Year – Reuters

The US dollar’s recent resurgence will last another three months, and possibly up to six, but its dominance will fade next year, a Reuters poll of currency strategists showed.

• Where Investors Can Stash Their Cash as Tariffs Kick In – Bloomberg

Sterling Braces for May’s Crunch Brexit Meeting – Reuters

Sterling inched higher before a long-awaited meeting where Prime Minister Theresa May will try to convince her ministers to back her policy document on Britain’s future relationship with the European Union.

• Pound to Rally After UK Leaves EU, Say FX Strategists – Reuters

Senior Chinese Financial Regulator Warns Against Shorting the Renminbi – Financial Times (subscription)

A senior Chinese financial regulator has waded in to calm forex markets, after a week in which the renminbi hit its lowest level in nearly eleven months.

• China’s Yuan to Remain Pressured by Trade Spat with US – Reuters

Trade War Could Knock Global Growth, Says Bank of England Governor – Wall Street Journal (subscription)

Bank of England Governor Mark Carney warned about the risks to the global economy from a full-blown trade war, saying higher tariffs between the US and its major trading partners could weigh on growth for years to come.

• Trump’s Trade War Is Already Hurting US Investment, Fed Says – Bloomberg

JPMorgan Triggers EU Talent Transfer as ‘Dozens’ Prepare for Brexit Move – Reuters

JPMorgan has asked “several dozen” employees to lead a first wave of relocations from Britain to continental Europe by early 2019, kicking off plans to protect its business post-Brexit, a memo to staff shows.

• Brexit an ‘Unmitigated Disaster’, Says Top City Investment Boss – Financial News (subscription)
• Brexit Prompts Asset Managers to Revamp Distribution Strategies – Financial Times (subscription)
• French Regulator: We Are Not the Brexit Bogeyman – Risk (subscription)

From Multi-Million-Dollar Losses to Litigation – Why a Lack of Credit Checking in the FX Market Is a Clear and Present Danger – Tabb Forum

The risk of suffering a significant loss from a defaulting client has not justified the returns for many prime brokers in the FX market.

Regulatory News

Bank of England Says No Big Changes to Bank Regulation on Horizon – Reuters

British banks should not expect further major changes to capital or liquidity requirements now that the bulk of the Basel III reforms agreed after the financial crisis have been implemented, a Bank of England regulator said.

• UK Banks Told to Show Their Backup Plans for Tech Shutdowns – Reuters

CCAR Losses Concentrated at Four US banks – Risk (subscription)

US dealers JP Morgan, Bank of America Merrill Lynch (BAML), Citi and Wells Fargo would suffer the most losses in a severe recession, according to the Federal Reserve’s stress tests.

Crypto News

UK Authorities Gather to Discuss Digital Currencies – The Trade

Discussion session to explore regulation of cryptocurrencies with aim of providing adequate protection without stifling innovation.

Speed Trader Jumps Into Crypto Bets Opposed by Watchdog – Bloomberg

Europe’s largest trader of exchange-traded funds is moving into crypto, even though its regulator urges consumers and institutions not to buy and sell digital currencies.

• Swiss Bourse Launches Cryptocurrency Platform – Financial Times (subscription)
• World’s Largest Crypto Exchange Eyes $1 Billion Profit Amid Rout – Bloomberg

Ripple Founder Hit with Yet Another US Lawsuit, Sued for Securities Fraud – Finance Magnates

For the third time in less than two months, a fresh lawsuit has been filed against the founders of Ripple Labs, the company behind the cryptocurrency Ripple.

Credit, Not Custody, the Biggest Challenge in the Crypto Space – Profit & Loss (subscription)

David Mercer, CEO of LMAX Exchange, talks about why a lack of credit, rather than custody solutions, is the biggest single challenge facing institutional market participants wanting to trade cryptoassets.

• A Fifth of All Bitcoin Is Missing. These Crypto Hunters Can Help – Wall Street Journal (subscription)

Company News

DTCC to Revamp US Swaps Data Repository After Singapore – FOW (subscription)

The post-trade giant will priortise changes to the US swaps data repository to align with regulatory updates.

Prince Switches Nomura for Lloyds – FX Week (subscription)

Foreign exchange sales veteran Joanne Prince has joined Lloyds’ global corporate team as a director, from Nomura, where she was an executive director in the Japanese bank’s global markets division between 2017 and 2018.

Goldman Sachs Widens e-FX Coverage in Asia – FX Week (subscription)

Nelson Wong joins the e-FX sales team in Singapore as the bank seeks to mirror client clusters.

Market Savvy 

Some Respite for EM Currencies After Worst Quarter in Nearly Seven Years – Financial Times (subscription)

Emerging market currencies enjoyed a much-needed reprieve, with investors cautiously regaining their risk appetites following major elections in Turkey and Mexico.

Forint Seen Recovering After Fall to Record Lows – Reuters

The forint and the zloty are seen mostly recovering from this week’s record lows against the euro in the next year, after a dollar rally caused a sell-off in emerging markets.

Zimbabwe Currency Crisis Stymies Reform – Financial Times (subscription)

Curious case of a security guard and an extra $10 exemplifies challenge facing Mnangagwa.