Top Headlines

Dollar Weakens After Fed Leaves Rates Unchanged – Bloomberg

The US dollar extended losses against a basket of major currencies on Wednesday after the US Federal Reserve left monetary policy unchanged and projected a less aggressive rise of interest rates in coming years.

How Currencies Have Reacted to the Fed and BoJ – Financial Times (subscription)

Whether the Federal Reserve did enough to classify as being the best central bank on show yesterday is debatable, but it’s hard to argue the Bank of Japan wasn’t the blurst of the lot.

Chinese Central Bank Designates Renminbi Clearing Bank in New York – Financial Times (subscription)

China’s central bank has designated an official renminbi clearing and settlement bank for New York City, filling in the final major gap in a network of offshore institutions designed to promote greater international use of the Chinese currency.

Global Banks Said to Plan for Loss of Euro Clearing After Brexit – Bloomberg

Executives at global investment banks in London expect France and Germany will prevail in a tussle over the clearing of $570 billion of euro derivatives and are making plans to deal with the fallout, according to people at four of the biggest firms. 

Esma Eyes 2018 Start for MiFID II Swaps Rules – Financial News (subscription)

Europe’s largest dealers and buyside firms may be required to trade certain over-the-counter derivatives on exchanges and other platforms from the moment the region’s new trading rulebook comes into force in January 2018, far earlier than many expected and creating possible cross-border headaches.

After ‘Frankenshock’, Investors Brace for Surge by Czech Crown – Reuters

As Czech policymakers get closer to removing their cap on the value of the country’s currency, the crown, forwards markets have started pricing in a Swiss franc-style sudden jump, albeit with not quite so dramatic consequences.

Renminbi to the rescue? How the rise of China’s currency could boost the British economy – International Business Times

Chinese investment in Britain could increase in the short-term future after London became the second-largest offshore clearing centre for the renminbi, even though the UK capital’s lead in the currencies-trading business is shrinking.

Can the Aussie dollar break to a new yearly high? – Sydney Morning Herald

The Australian dollar has emerged as one winner of the recent flurry of central bank activity, rising strongly against the US dollar and the New Zealand currency, while flatlining against the yen.

Bank of England’s Andrew Hauser: Don’t Expect Blockchain to Revolutionise Finance Any Time Soon – City AM

Much heralded blockchain technology will not create a revolutionary shake up in the financial sector anytime soon, a top Bank of England official has declared.

Regulatory News

China to Let Foreign Institutions Conduct FX Financing in Interbank Market – Reuters

China is planning to allow qualified foreign institutions to borrow and lend on the interbank foreign currency market to help meet their financing needs, the China Foreign Exchange Trade System says.

Brexit Backer Says Bank Freedom Starts by Embracing EU Rules – Bloomberg

UK has no choice but to implement MiFID II, lawmaker says.

US Automated Trading Proposal Out of Date: CFTC Commissioner – Reuters

Resistance to the chief US derivatives regulator’s proposal on automated trading is coming from within the leadership of the agency, with a member of the Commodity Futures Trading Commission on Wednesday saying it does not fit the current digital world.

Basel III Should Not Raise Banks’ Capital Requirements Significantly: ECB’s Nouy – Reuters

New Basel III banking rules are not expected to raise banks’ capital requirements significantly, the European Central Bank’s banking supervisor Daniele Nouy told Finnish newspaper Helsingin Sanomat.

Company News

Thomson Reuters Launches Managed Services in NY4 – Profit & Loss

Thomson Reuters has launched Elektron Managed Services in the Equinix NY4 data centre in Secaucus, New Jersey.

DTCC Reduces Repository Fees in Singapore and Australia – The Trade

The Depository Trust & Clearing Corporation has announced it will reduce fees for its global trade repository service in Singapore and Australia.

Small Businesses Still Ignoring FX Risks – Pymnts

According to researchers, there hasn’t been much improvement in the number of SMEs that are taking FX risk mitigation seriously.

Market Savvy 

Dollar Drop as Fed Stays on Hold Spurs High-Yielding Currencies – Bloomberg

The dollar fell against most of its major peers, extending a slide toward its biggest annual decline in seven years, after the Federal Reserve delayed raising interest rates.

EM Currencies Rally on Fed Caution – Financial Times (subscription)

The rand is leading the charge as emerging market currencies rally after the Fed’s decision to keep rates on hold yesterday.

Asia Yield-Hunting Back on Dovish Fed; Won, Rupiah Near 2-Wk Peaks – Reuters

Most emerging Asian currencies rallied on Thursday after the US Federal Reserve left interest rates on hold and slowed the pace of further hikes, encouraging investors to seek higher yields in the region.