Top Headlines

Euro Rebounds After Hitting 21-Month Low on Italian Referendum Defeat – Reuters

The euro rebounded from 21-month lows, clawing back almost all the ground it had lost overnight after Italian Prime Minister Matteo Renzi conceded defeat in a referendum on plans to reform the country’s constitution and said he would resign.

Yuan, Taiwan Dollar Slip After Trump Tweets Criticism of China – Wall Street Journal (subscription)

China and Taiwan’s currencies both slipped against the US dollar amid a broad rally for the greenback in Asian trading, as US President-elect Donald Trump again criticized Chinese currency and trade policy.

China’s Capital Controls ‘Can Harm Currency, Global Ambitions’ – South China Morning Post

China’s latest efforts to impose stricter control on capital outflows, especially on the yuan, are set to hurt its goals of creating an international currency and expanding the nation’s global influence, analysts say.

Thomson Reuters Partners with BestX for TCA Solution – Profit & Loss

Thomson Reuters has partnered with BestX to enable buy-side participants using its FXall and FX Trading platforms to streamline analysis of transaction costs, helping them define, achieve and demonstrate best execution.

CIMB Research Sees New Forex Measures Reducing Ringgit Speculation – The Star

CIMB Economics Research sees the new measures announced by the Financial Markets Committee and Bank Negara Malaysia will reduce ringgit speculation, minimise erosion of foreign reserves, and address market concerns over foreign currency risk management.

Asia Markets Better Prepared to Handle the Trump Factor – Asia Times

We don’t have a protectionism story here: we have a floating currencies story.

Has Trump Unleashed the US Dollar Bull? – The Australian

The US dollar has traded sideways for a couple for weeks now, and the world’s central bankers are holding their breaths: was the post-US-election four per cent rally the end of it, or has a new dollar bull market just begun?

Turkey Wants Trade with China, Russia and Iran in Local Currencies, Erdogan Says – Reuters

Turkey is taking steps to allow commerce with China, Russia and Iran to be conducted in local currencies, President Tayyip Erdogan said, in the government’s latest effort to shore up the tumbling lira.

Venezuela to Reissue Currency as Value of Its Biggest Banknote Drops to 2p – Independent

The currency lost 67 per cent of its value on the black market last month, falling to 4,587 Bolivars per US dollar – the steepest monthly plunge ever.

And the Central Banker of the Year Accolade Goes to… – Profit & Loss

But first, a look at the Subversives of the Year.

Regulatory News

No Emergency Intervention Needed in Italy, Dijsselbloem Says – Financial Times (subscription)

European financial markets have “so far reacted quite calmly” to Italian voters’ rejection of constitutional reforms and no emergency intervention is needed, the head of the group of 17 eurozone finance ministers said as the euro and bank shares rebounded from morning lows.

Fed’s Tarullo Warns Against ‘Backsliding’ on Bank Regulations – Reuters

US banking regulators must defend tough rules governing Wall Street and resist efforts to dilute regulations that might prevent a future financial crisis, Federal Reserve Governor Daniel Tarullo said.

Myanmar’s Central Bank to Reform Reference Rate – Myanmar Times

The Central Bank will reform its daily dollar auction system as part of an attempt to address the weakening kyat, deputy governor U Set Aung told Myanmar’s business community.

Company News

Change at BBVA as FX Management Duo to Leave – Profit & Loss

Profit & Loss understands that Andrew Brown, global head of foreign exchange, and Alan “Shoulders” Clarke, global FX product manager, are to leave Spanish bank BBVA at the end of the year.

Vickerman Exits Sun Trading – Profit & Loss

Matt Vickerman has left Sun Trading in Chicago, where he was head of business development, covering the FX and fixed income markets.

Edgewater Continues Hiring Spree – Profit & Loss

Edgewater Markets has hired Felipe Alanís Suárez as its head of electronic solutions, based in Mexico City.

Market Savvy

Italy’s Reform Snub Dents Asia FX; Ringgit Stable After New Central Bank Steps – Reuters

Most emerging Asian currencies pulled back as Italian Prime Minister Matteo Renzi said he would resign after suffering a crushing defeat on constitutional reform, tipping the country into political turmoil and threatening to destabilise its shaky banking system.

New Zealand Dollar Wobbles on Key Resignation, Pound Forecast to Extend Gains – Pound Sterling Live

The New Zealand dollar wobbled at the start of the new week on the resignation of New Zealand’s Prime Minister Key.

British Pound to Australian Dollar Exchange Rate Climbs to 1.71, RBA Forecast to Leave Cash Rate at 1.5% – Exchange Rates

As markets resume trading the British pound to Australian dollar exchange rate is seen sharply high at the 1.71346 level.