Top Headlines
Dollar Heads for Best Week in a Year – Reuters
The dollar was on course for its best week in a year on Friday, racking up another round of gains against the Chinese yuan and Mexican peso and steadying just off the previous day’s highs against the euro and yen.
Asia’s Emerging Currencies Slump as Trump Anxiety Deepens – Independent
A wave of selling hit Asia’s emerging currencies as investors feared higher interest rates and protectionist trade policies under incoming President Donald Trump will spark capital outflows and weakening exports from the region.
- Trump Trade Worries Send Investors Fleeing Asian Currencies – Wall Street Journal (subscription)
- Asia’s Emerging Currencies Plunge Amid Fears of Trump Trade Barriers – The Guardian
Global Market Rally Abates After US Election-Led Volatility – Financial Times (subscription)
The US dollar is giving back some of its recent gains, and this is helping underpin many commodity prices, with copper adding another 3 per cent to $5,785 a tonne.
Sterling and Yen Derivatives Drive FX Growth: BIS – Profit & Loss
The BIS semi-annual survey of OTC derivatives finds that while the interest rate segment continues to dominate outstanding derivatives balances, FX outstanding grew strongly driven by sterling and yen contracts.
BIS Data Highlight Impact of Clearing on Interest Rate Market – Profit & Loss
The Bank for International Settlements has released its latest semi-annual survey of OTC derivative markets which highlights the growing impact of central clearing on interest rate derivative markets.
China’s Yuan Set for Steepest Weekly Loss Since January Turmoil – Bloomberg
China’s currency is heading for its steepest weekly drop since January, when a series of weaker fixings roiled global financial markets, as Donald Trump’s election victory boosted the dollar and raised the threat of a more protectionist America.
Donald Trump’s pledge to declare China a currency manipulator on day one of his presidency raises the prospect of US tariffs on the Asian giant that figure to push their relationship onto new, contentious ground.
Donald Trump’s enmity toward the Chinese currency isn’t directly responsible for the yuan hitting its weakest point against the dollar in six years. But it sure could matter how China chooses to manage it going forward.
Trump Win Tipped to Have ‘Lasting and Negative impact’ on the Aussie Dollar – Sydney Morning Herald
The Australian dollar swung sharply overnight as traders weighed the support for the currency from a powerful commodity price rally against a sharp rise in US bond yields following president-elect Donald Trump’s surprise victory.
Trump Factor Thumps Indonesian, Malaysian Currencies – Nikkei Asian Review
The Indonesian and Malaysian currencies weakened sharply in Friday morning trading, as Donald Trump’s shock election victory jolted US interest rates.
Rupiah Plunge Prompts Intervention to Stabilize Currency, Bonds – Bloomberg
Indonesia’s rupiah plunged to a five-month low, prompting the nation’s central bank to say it stepped in to stabilize the local currency and bond markets.
Malaysia Denies Freeze in Foreign Exchange Trading of Ringgit: Governor – Channel News Asia
Bank Negara Malaysia will not peg the ringgit despite the recent volatility the currency has been facing due to the external environment, Governor Muhammad Ibrahim announced.
Ringgit Fell Against Most World Currencies in Third Quarter – Malay Mail
The ringgit lost value against nearly all major currencies in previous quarter, Bank Negara Malaysia said.
Swedish Government Rejects Debt Office Call for Bigger FX Mandate – Reuters
The Swedish government rejected a request from the state Debt Office to be allowed to take bigger positions in the crown on currency markets, following a warning against the move from the central bank.
IMF Welcomes Demonetisation but Calls for ‘Prudent Handling’ – Times of India
The IMF said it supports India’s efforts to fight corruption through demonetisation, but noted that the transition needs to be managed “prudently” to minimise any disruption.
Non-Bank Market Makers ‘Vital’ to Liquidity – Euromoney
Despite struggling to make a mark on corporate FX, non-bank market makers are confident they play a vital role in improving access to liquidity.
Regulatory News
Will Trump Fight the US Treasury Over Currency Manipulation Claims? – Profit & Loss
Donald Trump’s position on the currency manipulation provisions in US trade deals could lead him into direct conflict with US Treasury once he assumes the presidency, according Dick Cunningham, a senior international trade partner at Steptoe & Johnson’s Washington office.
Trump’s Transition Team Pledges to Dismantle Dodd-Frank Act – Bloomberg
President-elect Donald Trump is translating some of his populist campaign rhetoric into policy statements, including the contention that the Dodd-Frank Act should be scrapped because it has made Wall Street banks an even bigger threat to the nation’s economy and working families.
Warren Says She Would Work with Trump on Bank-Industry Policies – Bloomberg
She says offer hinges on promise not to roll back Dodd-Frank.
Company News
CME Reports Record Trading Day – Profit & Loss
CME Group reports that it reached a new record high in single day volume on November 9, with 44.5 million contracts traded across all asset classes, breaking the previous record set in October 15, 2014, by 12.7%.
Saxo Resumes Default Margin Requirements Post-Election – Profit & Loss
With the immediate market risk of the US elections having diminished, Saxo Bank has returned its margin requirements to normal levels, with the exception of GBP pairs.
Market Savvy
Dollar Rallies Against Emerging Market-Currencies – Wall Street Journal (subscription)
The dollar rose against emerging-market currencies, as investors unwound bets on developing countries amid expectations that interest rates will continue to rise in the US.
Emerging Assets Slide as Surging US Yields Spark Outflows – Reuters
Emerging market shares and currencies slumped as investors feared higher US interest rates under incoming President Donald Trump will spark capital outflows, while European bond yields were on course for their biggest weekly rise in a year.
Commodity Currencies Fall Amid Rising Risk Aversion – RTT News
Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session, as investor sentiment dampened amid worries that US president-elect Donald Trump’s plans to cut taxes and spend on infrastructure might stoke inflation.