Top Headlines

Euro Holds Three-Year Highs as Dollar Weakens Further – Reuters

The euro held at three-year highs against the dollar after last week’s surge, its rise fueled by growing expectations that the European Central Bank will tighten monetary policy, while the dollar weakened further.

Dollar Slips to Lowest vs Yen Since Mid-September – Reuters

The dollar slipped to its lowest levels since mid-September against the yen, following comments from Japan’s central bank governor on Japan’s economic recovery.

Sterling Extends Gains but Price Data a Grim Test – Reuters

Sterling edged higher after posting its biggest jump in four months on Friday on a media report that the Netherlands and Spain were open to a deal for Britain to remain as close as possible to the trading bloc crushed short positions.

Pound’s High Vulnerable to Fragile Brexit Sentiment – Bloomberg

The pound’s rally, spurred by hopes of a soft Brexit, may be vulnerable this week to heightened sensitivity to comments from European Union leaders on the prospects of such a deal.

Cartel Lawyers to Argue for Case Dismissal on January 29 – FX Week (subscription)

A federal court judge is set to hear arguments to dismiss a pending criminal case against three foreign exchange “cartel” members whom the US claimed conspired to rig prices in EUR/USD and restrain trading for the currency pair.

Renminbi Strengthens 0.6% as China’s Central Bank Flags Drop in Liquidity – Financial Times (subscription)

China’s renminbi firmed as much as 0.6 per cent to the strongest level in more than two years as the country’s central bank loaned out nearly Rmb400bn ($62.2bn) in response to what it described as a “relatively large” decrease in the banking system’s liquidity.

Bundesbank to Include Renminbi in Currency Reserves – Financial Times (subscription)

Germany’s central bank said it will include the renminbi in its currency reserves, giving the Chinese currency’s international stature a boost after 2017 saw its role in global payments diminished.

Markets Wary of Revival in Trump Trade Protectionism – Financial Times (subscription)

The prospect of Donald Trump putting “America-first” protectionism back on the table has investors wary of heightened currency market volatility and the potential impact on the global economy.

There’s Still Hope for UK Financial Services in Brexit Deal – Bloomberg

The UK shouldn’t give up hope of getting financial services included in a final trade agreement with the European Union, with a Bloomberg survey of the EU’s 27 remaining governments revealing divergences of opinion.

The Sobering First Month of Bitcoin Futures – Profit & Loss (subscription)

So far, so normal, but the price action has been very interesting.

Regulatory News

Mnuchin Says Financial Regulators Will Probe Impact of Cryptocurrencies – The Hill

Treasury Secretary Steven Mnuchin said that an interagency group of regulators is reviewing the impact of cryptocurrencies like bitcoin on the United States financial system. 

South Korea Says Planned Ban on Cryptocurrency Market Not Yet Finalized – Reuters

South Korea said that its plans to ban virtual coin exchanges had not yet been finalized as government agencies were still in talks to decide how to regulate the market.

Gina Miller Threatens to Sue FCA Over Its Handling of Mifid II – Financial News

Gina Miller, who shot to fame after taking the UK government to court over Brexit, has held talks with a number of law firms in order to sue the UK’s financial regulator over its handling of Europe’s newly-implemented market rules.

A Star Arab Economy Loosens Currency Peg to Attract Investors – Bloomberg

Morocco will loosen its currency peg in a long-awaited move aimed at strengthening its economy and avoiding financial imbalances that forced a slew of emerging nations into sharp devaluations.

Company News

The Helpful Big Brother – Profit & Loss (subscription)

One firm believes it has the answer to the challenges facing banks in particular when it comes to monitoring activity over e-channels.

FX Hiring Prospects to Pick Up in 2018, Study Says – FX Week (subscription)

Hiring activity in foreign exchange is expected to pick up in 2018, as the business remains an important revenue contributor for dealers, especially in Europe, the Middle East and Africa, according to a survey by recruitment firm the Options Group.

Bitcoin Investors Struggle to Cash Out New Fortunes – Financial Times (subscription)

Bitcoin investors trying to channel their new fortunes into UK property are being turned away by mortgage lenders and brokers who fear breaching anti money-laundering regulations.

Market Savvy

Asia Pacific Currencies’ Gains Push Dollar to Fresh Three-Year Low – Financial Times (subscription)

Asia Pacific currencies firmed against the US dollar as the dollar index fell to a fresh three year low.

Bitcoin Rebounds, Still Heads for Weekly Slump as Scrutiny Rises – Bloomberg

Bitcoin advanced for the first time this week as regulators around the world increased their scrutiny of the largest cryptocurrency, with concerns ranging from investor losses to strains on power systems.

Rupee Surge Will Likely Be Short-Lived, Strategists Say – Bloomberg

Emirates NBD predicts the rupee will weaken to 65 per dollar by the end of March.