Top Headlines

Dollar Skids on US Twin Deficit Worries, Hits 15-Month Low vs Yen – Reuters

The dollar tumbled across the board, hitting a 15-month low against the yen as worries over twin deficits in the United States mounted amid a government spending splurge and large corporate tax cuts.

Rising US Bond Yields Fail to Stem Dollar Decline – Financial Times (subscription)

Analysts point to economic, government debt worries for greenback’s fall.

Sterling Gains as Dollar Extends Sell-Off – Reuters

Sterling rose against the dollar, cementing gains on the back of a broadly weakened dollar, with traders eyeing earnings data next week to give the pound fresh momentum.

Yen Touches Fresh 15-Month High as Dollar Weakens – Financial Times (subscription)

The yen touched a new 15-month high against the dollar as the US currency continued to weaken.

No Need for Yen Intervention, Says Japan’s Finance Minister – Financial Times (subscription)

The yen’s surge to ¥106.5 against the dollar – a 15-month high – does not require market intervention, said Japan’s finance minister, as nerves grow about the currency’s sharp appreciation this year.

European Corporate FX Losses Highest Since 2015: Report – FX Week (subscription)

The resurgence of volatility in currency markets and strengthening of the euro has seen European corporates suffer the biggest negative currency impact since 2015, while their North American counterparts shaved more than $5 billion off foreign exchange-related losses in the third quarter of 2017.

How Christine Lagarde Planned to Use EU Rules to Force Business from London to Paris – Seven Years Before Brexit – Business Insider

International Monetary Fund chief Christine Lagarde wanted to use European legislation to force financial business from London to Paris when she was the French finance minister, according to a senior British MEP.

EU Market Abuse Rules Could Trip Alternative Data Users – Risk (subscription)

Investors using alternative data could fall foul of European Union market abuse rules as regulators may see some of the data as non-public information, according to lawyers.

Don’t Bet on Mifid II’s Quiet Start Lasting – Financial Times (subscription)

Studies this week from UK regulators suggest they are serious about enforcing the rules.

Correlation Trading or Market Manipulation? – Profit & Loss (subscription)

In an ideal world it would only be actual trades that make up a settlement or rate fix, but as has been proven post-Libor, that is often difficult, sometimes impossible.

Insider Trading Is Still Rampant on Wall Street, Two New Studies Suggest – CNBC

Insider trading remains a rampant problem on Wall Street, with new research finding that the nation’s largest financial institutions pocket hefty sums with the help of non-public information.

DRW Calls for Physical Settlement of Bitcoin Futures – Risk (subscription)

The head of market structure at Chicago-based trading firm DRW Holdings has warned that the current settlement mechanism for bitcoin futures could disrupt the market and called for the contracts to be physically settled.

FinTech in FX: An Evolutionary Process – Profit & Loss (subscription)

Although fintech solutions are likely to change how FX operates throughout the trade lifecycle, expect these changes to be evolutionary rather than revolutionary, explained speakers during a recent Profit & Loss webinar.

Regulatory News

US Regulators Probe Credit Suisse Hiring in Asia – Reuters

US authorities are investigating whether Credit Suisse hired referrals from government agencies and state entities in Asia in exchange for investment banking business and regulatory approvals, the Swiss bank said.

House Backs Bill That Would Benefit Fintech Partnerships with Banks – Wall Street Journal (subscription)

The House approved a bill that would make the resale of high-interest loans more attractive to third-party buyers such as debt collectors – and bolster fintech firms’ partnerships with banks.

Investors Aren’t Getting the Full Story on Cyberthreats, Regulator Says – Wall Street Journal (subscription)

Poor information about hacking threat has spurred the need for new regulations, says SEC Commissioner Kara Stein.

Whether Correction Turns Into Regime Change Is Down to the Fed – Financial Times (subscription)

The untested new Fed chief Jay Powell will face a key test if inflationary pressures build.

Should Congress Create a Crypto-Cop? – The New York Times

Laws adopted decades ago give the two US regulators little authority to engage in oversight of the burgeoning market in cryptocurrencies.

Company News

Hedge Funds Benefit from January Volatility – Profit & Loss

Hedge Funds gained 2.11% in January according to the Barclay Hedge Fund Index compiled by BarclayHedge, continuing a strong end to 2017 and extending the Index’ winning streak to 15 months.

UOB Expands FX Solutions Suite – Profit & Loss

UOB has added two FX solutions to its suite of cross-border financial products and services in China.

Prime Brokerage FX Trading Desks See Higher Volumes as Volatility Continues – Finance Magnates

As traders are becoming more interested in committing to active trading due to widened ranges, prime brokers are marking the end of a long period of subdued volatility.

Coincheck Hit by Lawsuit as Investors Seek Restart of Cryptocurrency Withdrawals – Reuters

Cryptocurrency investors launched a lawsuit against Coincheck, seeking to force the Tokyo-based exchange to allow them to withdraw assets worth $183,000 frozen after last month’s $530 million heist of digital money.

Market Savvy

Iran Holds 100 Traders and Freezes Accounts in Dollar Crackdown – Financial Times (subscription)

The operation is aimed at tackling a slide in the value of the rial, which is down more than 10 per cent this year, caused by a dollar shortage that has spooked businesses reliant on hard currencies.

Sri Lankan Rupee Hits Fresh Record Low as Political Uncertainty Weighs – Reuters

The Sri Lankan rupee hit a record low as panicked importers bought US dollars following the defeat of the two ruling coalition parties in a local election, but late selling in the greenback by exporters capped the fall. 

Emerging Markets Turn to Local Debt – Financial Times (subscription)

Emerging Markets are more indebted today than at any point since the 2008-09 crisis.