Top Headlines

Euro Hits Six-Week High on Growth Outlook Optimism – Reuters

The euro hit a six-week high against the dollar, with investors optimistic about the strength of the euro zone’s recovery after strong economic data this week.

Sterling Set to Rise for Third Week as Charts Support – Reuters

Sterling edged higher and is poised to post gains for a third consecutive week as markets interpreted latest comments from top EU policymakers as mildly positive for Brexit negotiations though gains were capped.

EC Backs Forex Forward Margin Exemption – Risk (subscription)

The European Commission has backed plans to exempt buy-side entities from having to post variation margin on certain foreign exchange forwards.

Nagging Questions Behind Scandi Currency Volatility – Financial Times (subscription)

Krona weakness prompts fresh look at Swedish economy as krone de-links from oil.

Romanian PM Criticises Central Bank for Not Stemming Currency Weakness – Reuters

Romanian Prime Minister Mihai Tudose criticised the central bank for not intervening to stop the leu currency from weakening and suggested commercial banks may have contributed.

SNB’s Jordan Sees Crypto Currencies as More of an Investment Than Currency – Reuters

Swiss National Bank Chairman Thomas Jordan is cautious about crypto currencies, saying he sees products like Bitcoin as more of an investment than a currency at present.

Who Wins, Who Loses from MiFID II Shakeup? – Bloomberg

While the shakeout could take years, here are some early guesses on who may benefit from the overhaul and who may not.

FX: Non-Bank Market Makers Crowded Out – Euromoney

Are non-bank market makers simply repackaging existing liquidity or are they genuinely adding to market flows?

Central Banks Are Right When They Say No One Understands Them – Bloomberg

Study shows Britons’ knowledge of the Bank of England is sparse.

Regulatory News

Regulatory Deadlines Put “Severe Strain” on Third Countries”: Paper – FOW (subscription)

Regulatory dissonance creates adverse effects on international financial markets, according to a WFE paper.

UK’s FCA Says Banks Will Support Libor Benchmark Through 2021 – Bloomberg

The UK financial services regulator confirmed all 20 banks have agreed to support the London interbank offered rate until 2021 and will work towards developing an alternative benchmark.

Asia May Benefit from Mifid But Not “Overnight”: Expert – FOW (subscription)

“Financial centres and how they have evolved don’t change overnight,” said Matthias Voelkel.

ICO Regulation Inconsistent as Cryptocurrency Bubble Fears Grow – Financial Times (subscription)

US scrutiny of cryptocurrency offerings could mean criminal penalties are looming.

Company News

Wall Street’s 2017 Market Predictions: Pathetically Wrong – Wall Street Journal (subscription)

Forecasting is difficult, but this year showed exactly how pointless it can be: markets performed opposite of virtually all predictions.

Clearing Is Not Something We Need to Own: Cboe – FOW (subscription)

Chicago exchange said it will work with European clearing infrastructures to create opportunities.

FlexTrade Enhances EMS – Profit & Loss

Flextrade has rolled out an enhanced version of its multi-Order Management Systems (OMS) aggregation functionality, an in-built feature of the FlexTrader EMS, which allows users to merge and net orders across multiple OMS regardless of the underlying version or implementation.

Market Savvy

Asia FX Mostly Firm, Chinese Yuan Softer Despite Higher Central Bank Fix – Reuters

Most Asian currencies firmed with the dollar remaining under pressure as it struggled to shake off the Federal Reserve’s concerns about low US inflation.

Lira Pops Higher After Erdogan Adviser Appears to Warm to Higher Rates – Financial Times (subscription)

The Turkish lira briefly bounced more than one per cent after Cemil Ertem, economic adviser to President Recep Tayyip Erdogan, said the country’s central bank could raise rates “any time”.

South Africa Holds Rates, But Big Test Ahead for Rand on Debt Ratings – Financial Times (subscription)

South Africa’s central bank has left interest rates on hold as expected, but the biggest flashpoint for the country’s markets is likely to come from ratings agencies.