Top Headlines

EM Hit as Brazil Bears Brunt of Investor Unease – Financial Times (subscription)

Nearly 8% wiped off nation’s currency following corruption allegations.

Dollar Weakness Helps Sterling Recover After ‘Flash Slip’ – Financial Times (subscription)

Renewed pressure on the dollar helped the pound to pick up, with sterling recovering most of the losses sustained in a sudden sharp fall yesterday evening.

Another Pound Flash Crash? – Financial Times (subscription)

While it is unclear what drove the sharp drop, it marked the third such event for the pound since October 7.

Respite for Dollar from Solid US Data; Political Storms Rage On – Reuters

The dollar traded above six-month lows against a basket of six major peers, having gained some reprieve as solid US economic data helped temper a sell-off triggered by political tumult in Washington.

Japanese Yen Recovers as Cautious Mood in Markets Prevails – Financial Times (subscription)

The Japanese yen is the standout performer in Asian trade, in an otherwise mixed day for other major currencies.

China Is Using the Yuan to Combat Risk of a Market Meltdown – Bloomberg

China has an insurance policy against a full-scale market meltdown: the daily currency fixing.

Swedish Krona Weakness Unlikely to Last, Says SEB – Financial Times (subscription)

But technical factors not very supportive of EUR/SEK shorting trade.

Europe Nears Decision on Base for Euro Clearing – Financial Times (subscription)

Decision on prized business expected to have far-reaching consequences for markets.

Predictions on the Future of the FX Industry – Profit & Loss (subscription)

Following his retirement from Citi, where he spent nearly 30 years and most recently served as global head of G10 FX, James Bindler, reflected at Forex Network London about the changes that he’s observed in the industry.

Regulatory News

Big Banks Can Relax, Trump’s Modern Glass-Steagall Isn’t Aimed at Breaking Them Up – Wall Street Journal (subscription)

The Trump administration took the idea of breaking up big banks off the table, with Treasury Secretary Steven Mnuchin telling a congressional panel that isn’t what officials have in mind in reviewing the line between commercial- and investment-banking activities.

Mnuchin Says Trump Has Made His Pick for Key Banking Regulator – Bloomberg

President Donald Trump has selected a candidate to be permanent head of a key Wall Street regulator, Treasury Secretary Steven Mnuchin said.

France, Germany Battle to Host EU Finance Regulator Post-Brexit – Wall Street Journal (subscription)

France is shooting down the possibility of relocating Europe’s top financial regulator to Frankfurt from London after Brexit, an early sign of infighting over the spoils of Britain’s departure from the European Union.

SEC Petition Calls for Blockchain Token Rules – Coin Desk

A New York-based broker-dealer has asked the Securities and Exchange Commission (SEC) to propose rules to cover blockchain-based assets.

Company News

Two More Exit StanChart? – Profit & Loss

Market sources tell Profit & Loss that Standard Chartered Bank has seen two departures from its G10 FX trading ranks, just weeks after four other traders in the e-FX and NDF team were reported to have left.

Goldman’s Other Problem in FICC: UBS Keeps Pinching Its Salespeople – eFinancial Careers

Goldman’s fixed income business struggled in the past two quarters, with the FX pulled out as an area of particular weakness.

LMAX Exchange Reports Record Profits for 2016 – FX Week (subscription)

FX platform posts EBITDA of £5.6 million, representing annual rise of £4.2 million.

Bitcoin’s Murkier Rivals Line Up to Displace It as Cybercriminals’ Favourite – Reuters

Bitcoin is well-entrenched as the preferred payment for cybercriminals like the WannaCry hackers who have hit more than 300,000 computers over the past week, but cryptocurrencies offering more anonymity are threatening to displace it.

Market Savvy

Most Asian Currencies Move Marginally; Rupiah Slides to Four-Month Low – Reuters

Most emerging Asian currencies trod water, as wariness about political turmoil in Washington continued to dent risk appetites.

Rupee Plunges Most in 11 Months as Risk Off Hits Indian Markets – Bloomberg

India’s rupee tumbled the most since June last year as local shares joined a global selloff triggered by concern over political turmoil in the US and Brazil.

C$ Clings to This Week’s Gains as Oil Rises – Reuters

The Canadian dollar was little changed against its US counterpart, holding this week’s gains as higher oil prices offset broader gains for the greenback.