Top Headlines

Euro to Weaken Following ECB’s Rates Decision? – Profit & Loss

The European Central Bank (ECB) has decided to hold interest rates steady, with market participants predicting further euro weakness.

Dollar Holds Gains After Euro Sinks on ECB’s “Less for Longer” Decision – Reuters

The dollar held large gains against the yen and euro early on Friday, given a lift after the common currency slumped overnight following the European Central Bank’s decision to extend its debt-buying programme even as it cut the amount of purchases. 

David Cameron Warns the Existence of European Single Currency is Hanging in the Balance – The Telegraph

David Cameron warned that the existence of the European single currency was hanging in the balance, telling an audience in the United States: “I wonder how long it can last.” 

Citigroup Faces Fresh Grilling in Sterling ‘Flash Crash’ Inquiry – Financial Times (subscription)

UK regulators have summoned Citigroup executives for fresh discussions over the bank’s role in October’s “flash crash” in sterling, seeking more information on the supervision and controls Citi had in place. 

Brazil Regulator Cade Fines Foreign Banks for Currency Manipulation – Reuters

Brazilian antitrust watchdog Cade said it has fined five international banks a combined 183.5 million reais ($54 million) as part of a settlement of charges they rigged the country’s currency market.

UK’s May Finds US Ally in Brexit Tussle Over London Clearing – Bloomberg

Prime Minister Theresa May has found a surprising ally as Britain and the European Union battle over London’s vital clearing industry – the US.

Offshore Yuan Shows Depreciation Stress as Fed Rate Hike Looms – Bloomberg

The offshore yuan outpaced declines in the Shanghai rate this week, adding to signs of renewed stress on the Chinese currency as investors brace for higher borrowing costs in the US.

Chinese Exchange Controls Are Disrupting Operations for European Businesses – Out-Law

European companies in China have faced difficulties in sending dividends out of the country since new exchange controls were introduced, the EU Chamber of Commerce in China has said.

FXPB Head Leaves Deutsche Bank – Profit & Loss

Jason Vitale has resigned from Deutsche Bank in London, ending a 12-year career at the institution.

Benchmarks Under Increased Regulatory Scrutiny – Profit & Loss

In a new whitepaper, Thomson Reuters claims that regulators are requiring firms that contribute to financial benchmarks to face increased scrutiny of their record-keeping and information governance policies.

Europe’s Next Big Currency Opportunity Just Got a Lot Closer – Bloomberg

After being held back by the central bank for three years, the Czech koruna is preparing for its final leap to freedom.

Mexico’s Peso Problems Are a Warning Sign for Global Investors – Bloomberg

While no one is calling for a full-blown crisis yet, there’s plenty of concern that returns could be subpar for months or even years to come as peso volatility increases.

Iran’s Cabinet Votes to Change National Currency – Al-Monitor

President Hassan Rouhani’s Cabinet voted to approve a bill that proposes to change Iran’s currency from the rial to the toman, and to remove one zero, the official Islamic Republic News Agency reported.

Banks’ Single-Dealer Strategy Might Have Limited Shelf Life – Euromoney

Many banks are leaning heavily on their single-dealer platforms to improve the efficiency of their FX business, although there is no guarantee that this approach will be sustainable in the long term.

Regulatory News 

FMSB Releases Principles for FX Surveillance, Conduct Training – FX Week (subscription)

The FICC Market Standards Board outlines ten core considerations for surveillance.

US Derivatives Regulator to Move on from Dodd-Frank Under Trump – Reuters

J. Christopher Giancarlo, in line to head the Commodity Futures Trading Commission once Trump is inaugurated on January 20, has said the agency should look beyond mandates from the 2010 Dodd-Frank Wall Street reform law to current trends in financial markets.

Turkey, China Realize First Currency Swap Transaction in a Move to Use National Currency in Foreign Trade – Daily Sabah

The first currency exchange transaction between the Turkish and Chinese central banks was realized as a move to support using national currencies in foreign trade.

Traders Question Efficacy of New Algo Regulation – FOW (subscription)

Systematic traders have questioned the efficacy of regulatory efforts to clamp-down on electronic trading such as the US Regulation Automated Trading and provisions under the EU’s sweeping regulatory package MiFID II.

Company News

Bloomberg Says Issues on Its Terminals Resolved – Reuters

Issues causing slowness on Bloomberg’s terminals that began late Thursday morning had been resolved for all users by mid-afternoon, the company said.

Donald Trump Will Be a ‘Game Changer’ for Currency Markets, Says the CBA – Business Insider

Richard Grace, the Commonwealth Bank’s chief currency strategist, is one analyst who is more bullish than most.

XTX Markets Joins Bats Europe as a Member Firm – Finance Magnates

The Bats Europe membership is the next milestone for the company – it now has access to 15 major markets across Europe.

Ticking the Boxes – Efficiently – Profit & Loss

A new software product seeks to help hedge fund managers digitise key aspects of their business eliminating the reliance on spreadsheets, calendar and an increasing paper trail.

Browning Joins Rokos Capital – Profit & Loss

Marcus Browning has joined Rokos Capital Management in London.

Former Goldman Exec Joins Voltaire Capital – Profit & Loss

Omer Suleman has joined Voltaire Capital in London, sources say.

Market Savvy 

Emerging-Market Stocks Rise on ECB Signals; Currencies Mixed – Bloomberg

Brazilian real advances, while Turkish lira declines.

C$ Strengthens to a Seven-Week High as Oil Rallies – Reuters

The Canadian dollar strengthened to a seven-week high against its US counterpart, as higher oil prices offset broader gains for the greenback after the European Central Bank’s monetary policy decisions.

Already Soft Australian Dollar Tumbles Vs Bullish US Dollar Following ECB Decision – Exchange Rates

The Australian dollar exchange rates have struggled to gain any traction this week, not helped by an unexpected widening of the trade deficit; AUD/USD continues to fall after the latest ECB meeting boosted the US dollar.