Top Headlines

Euro Slips Below $1.18 in Longest Slide Since May; Aussie Gains – Bloomberg
The euro slipped below $1.18 for the first time since 2005 as a German report showing factory orders fell in November more than economists predicted buoyed the case for additional European Central Bank stimulus.

It’s Deja Vu as BOE’s Carney Seen Holding Rates This Year – BusinessWeek
This year is looking a lot like 2014 for Bank of England Governor Mark Carney. As he concludes his first policy meeting of 2015, the outlook remains dominated by a weak euro-area economy that’s showing few signs of recovery, political risks at home and inflation below the 2% target.

World’s Best Forecaster Targets Euro-Dollar Parity: Currencies – Bloomberg
Being more bearish on the euro than the consensus helped ING Groep NV become the world’s most accurate currency forecaster in 2014. The Dutch bank sees no reason to change its strategy now, breaking from the pack to predict a drop to parity with the dollar within two years.

Bank of China to Set Up Yuan Clearing Business in Malaysia – Asia First
China’s Central Bank, the People’s Bank of China, announced that Bank of China has been authorised to conduct renminbi (RMB) clearing business in Malaysia’s capital, Kuala Lumpur.

Rupee Rises Most in Three Weeks as Foreign Banks Boost Holdings –Bloomberg
India’s rupee advanced the most in three weeks as foreign banks boosted holdings of local debt and stocks rebounded after a three-day loss.

Regulatory News

House Republican Push to Roll Back Wall Street Regulations Fails – Wall Street Journal (subscription)
A push by House Republicans to roll back a series of Wall Street regulations failed to advance Wednesday amid resistance from Democrats, an unexpected setback for the GOP’s efforts to use its increased majority to ease financial rules.

DBS Risk Chief Calls for Wider Margining Exemption for Non-Banks –
Exemptions to margin requirements for noncleared derivatives should be extended to include nonbank financial institutions because they don’t have readily available assets to post as collateral, says Elbert Pattijn, chief risk officer at DBS in Singapore.

JP Morgan Agrees New Settlement for FX Manipulation – Profit & Loss(subscription)
JP Morgan has agreed a settlement, believed to be worth $100 million, in an antitrust litigation lawsuit brought against 12 major banks for alleged manipulation of the FX market.

ESMA Publishes Review of CCP Colleges
The European Securities and Markets Authorities (ESMA) has published a peer review report on its participation in the supervisory colleges set up under the European Markets Infrastructure Regulation (EMIR) to authorise and supervise EU-based central counterparties (CCPs).

Company News

GFI Future Still Hanging in the Balance – Profit & Loss (subscription)
There have been more developments regarding the future of GFI Group. After it was announced that GFI has received regulatory approval for its deal with CME Group, BGC Partners extended its rival offer for the brokerage and senior GFI staff reportedly threatened to quit the firm if BGC does win the bidding war.

EBS Launches Month End INR NDFs – Profit & Loss (subscription)
Icap’s electronic FX business, EBS, is launching the first purely electronic OTC, end of month (EOM) non-deliverable forward (NDF) Indian rupee contracts on its Market platform, following the completion of a pilot.

Market Savvy

The Track 2015 Outlook – Blue Sheep
This is the year of the Sheep. Technically it’s the year of the wooden green goat – but let’s not get bogged down in details as no one really understands predictions, astrology or the purpose of making calls on the year ahead except for those in need of reputational risk. So rather than be creative, many investors appear set to chase the trends that started in 2014 – oil lower, USD higher and a stock pickers paradise. The fear of more geopolitical conflicts and larger market disruptions gives way to compromise and perhaps contentment in the year ahead.

Press Releases

ICE Futures US Announces Launch of Five New Forex Contracts
Intercontinental Exchange, a global network of exchanges and clearing houses, has added five new currency pairs to its line-up of forex contracts. The new contracts are expected to begin trading 12 January on ICE Futures US.

Industry Events