Top Headlines

Dollar Slips on Fears Over US Tax Reform Delay – Reuters

The dollar slipped against most major currencies, weighed down by worries over possible delays to Donald Trump’s tax reform plan and evidence of the US president’s waning popularity.

Donald Trump’s Year in Numbers – Financial Times (subscription)

Fears the election victory would be a negative ‘game-changer’ have not come to pass.

String of Scandals Trips Up Sterling Ahead of New Brexit Talks – Reuters

Sterling slipped, with a string of scandals in the ruling Conservative party and evidence of growing doubts over Prime Minister Theresa May’s ability to deliver a good Brexit deal putting pressure on the pound.

Why Trump’s Currency Punching Bag Isn’t an Easy Target Anymore – Bloomberg

China’s yuan has gone from loser to gainer during Trump’s term.

Johnson Appeals to FX Community for Sentencing Help – FX Week (subscription)

Mark Johnson, who has been found guilty of wire fraud in the US, is asking people to write to the judge as character witnesses.

New Brexit Carve-Out Urged for Legacy EU Cleared Swaps – Risk (subscription)

Grandfathering existing portfolios of cleared swaps from proposed European Union rules that may force the relocation of clearing houses away from London after Brexit would not be enough to ensure a smooth transition, market participants are warning.

Exchange Operators Believe in Cryptocurrencies: CBOE – Reuters

The major futures exchanges believe in the development of cryptocurrency trading and will push on with launching exchange traded funds that allow investors to trade in them, chief operating officer and president of Cboe Global Markets said.

Tame Bitcoin’s Price Swings? There’s a Plan for That – Wall Street Journal (subscription)

CME looks to rein in bitcoin’s notorious volatility with limits similar to those on other futures contracts.

Cryptocurrency Pioneer Sees a ‘Total Bubble.’ Just in a Good Way – Bloomberg

Cryptocurrency pioneer Joseph Lubin said the market is “totally a bubble” – insisting that’s a healthy signal.

The P&L Debate: Is TCA Just a Morality Carwash? – Profit & Loss (subscription)

The subject of how data is used to conduct Transaction Cost Analysis (TCA) formed part of a lively debate at Profit & Loss Forex Network Chicago.

Regulatory News

New Top US Banking Regulator Urges ‘Fresh Look’ at Rules – Reuters

America’s top financial regulator said “everything is up for a fresh look” as the Federal Reserve considers dialing back some crisis-era banking rules put in place over the last decade, offering hope to Wall Street and Republicans looking to cut red tape.

EU Driving Global Financial Services as US Takes Back Seat – The Hill

US regulators, preoccupied with modifying the decade-old, hastily put together Dodd-Frank regulatory regime, have let their guard down, potentially leaving the European Union’s (EU’s) fast-tracked regulatory regime to dominate US financial institutions behavior.

Company News

State Street CEO, President Plan to Retire – Wall Street Journal (subscription)

Ron O’Hanley will succeed Joseph Hooley at the end of 2018 as part of leadership shake-up.

Flow Traders Targets FX Expansion – Profit & Loss

Flow Traders, a Netherlands-based liquidity provider that specialises in exchange traded products (ETPs), is making a concerted push into the FX market, the firm has revealed today.

IHS Markit Automates Post-Trade Lifecycle for Cross-Currency Swaps – The Trade

IHS Markit has partnered with LCH SwapAgent and CLS to automate settlement and margin payments.

Bitcoin Proves Hard to Kill in China – Financial Times (subscription)

Over-the-counter market for cryptocurrency grows after authorities close exchanges.

Market Savvy 

Emerging Currencies Fall Up to Two Percent in Broad Selloff – Reuters

Emerging market currencies, including the Russian ruble, South African rand and Turkish lira fell by as much as two percent against the dollar in a broad market selloff. 

Oil-Linked Currencies Miss Out on Crude Rally – Financial Times (subscription)

Benefits from oil’s robust advance elude Russian rouble and Norwegian krone.