Top Headlines

Ex-Traders in Singapore Guilty of Cheating Deutsche Bank, HSBC – Bloomberg

Two former currency traders from Deutsche Bank and HSBC Holdings were convicted of cheating the banks by making false trades.

Pound Set for Best Day Since 2008 After May’s Brexit Statement – Bloomberg

The pound climbed against the dollar, set for its biggest advance since the global financial crisis, as Prime Minister Theresa May said UK lawmakers will get a vote on the final deal for an exit from the trading bloc.

Volatile Pound Breathes Life Into Emerging-Market Carry Trades – Bloomberg

There’s life in the great emerging-market carry trade yet, although now it comes with a twist.

Dollar Rebounds After Five Days of Falls – Reuters

The dollar rebounded after falling for five days in a row against its currency basket, as investors eyed a speech by the head of the Federal Reserve later in the day and US inflation data for clues on the path of interest rates.

Trump Just Signaled the Death of Clinton-Era Strong Dollar Policy – CNBC

President-elect Donald Trump’s shock comment that the dollar is too strong suggests the US is about to declare as dead a two-decade policy of publicly favoring a strong currency.

Emerging-Market Currencies Rise Amid Trump’s Remarks on Dollar – Bloomberg

Emerging-market currencies and stocks advanced as the US dollar slumped after President-elect Donald Trump said the currency is “too strong.”

Renminbi Trades Weaker After Strongest Fix in Two Months – Financial Times (subscription)

China’s currency was softer after its central bank fixed the renminbi’s trading band at its strongest level in two months in the wake of the dollar’s fall against a host of major currencies.

Yen Rallies Above Milestone for First Time Since November – Financial Times (subscription)

The yen rallied more than one per cent against the dollar, crossing a key threshold, with the greenback in a broad retreat.

Japan’s Suga: Stable Forex Market is Important for Government – Reuters

Japan’s top government spokesman said that stability in the foreign exchange market is very important and the government wants to closely monitor markets with a sense of urgency.

Japan’s Economy Seen Growing Moderately But Trump Poses Currency, Trade Risks – Reuters

Japan’s economy is expected to grow at a slightly faster pace in the fiscal year starting in April than projected last month, but there is heightened uncertainty over the outlook as US President-elect Donald Trump prepares to take office, a Reuters poll showed.

Brazil’s Real, Mexico’s Peso Strengthen as Dollar Dips – Reuters

Mexico’s peso and the Brazilian real strengthened against the dollar as US traders returned from a long weekend in which President-elect Donald Trump said the greenback’s strength against the Chinese yuan “is killing us.”

No Ruble Tripwire Seen for Russia as Currency Strains Mount – Bloomberg

The ruble is settling in a range where the Bank of Russia purchased foreign currency in 2015, but this time policy makers are looking the other way.

Trump’s ‘Open-Mouth Operations’ Make Twitter Key for FX Traders – Bloomberg

Traders in the $5.1 trillion-a-day foreign-exchange market should put Donald Trump’s Twitter account at the top of their daily reading list.

Regulatory News

Outgoing SEC Chair Says Congress Stifling Regulator’s Mission – Wall Street Journal (subscription)

Departing Securities and Exchange Commission Chairman Mary Jo White criticized legislation she claimed would harm the commission’s independence, saying recent moves by Congress would crimp its ability to protect investors and impede responses to another financial crisis.

RBI Independence Questioned After India’s Cash Recall Chaos – Financial Times (subscription)

India’s central bank and its new governor are facing a barrage of criticism over their role in the recall of 86 per cent of the country’s currency, with a growing chorus casting doubt over the independence and competence of one of the country’s most important institutions.

ECB Must Understand Impact of Central Bank Digital Currency on Price Stability Before Introducing It – Econo Times

The European Central Bank (ECB) official and ex-Governor of the Central Bank of Luxembourg addressed on digital currency during his speech at the Farewell ceremony that was held at Helsinki for Pentti Hakkarainen, Deputy Governor of Suomen Pankki, Bank of Finland.

Nigeria Central Bank Bars Banks from Virtual Currency Transactions – Premium Times

The Central Bank of Nigeria, CBN, banned banks from all transactions in bitcoin and other virtual currencies.

Company News

Blockchain Could Save Investment Banks Up to $12 Billion a Year: Accenture – Reuters

Blockchain technology could help the world’s largest investment banks cut their infrastructure costs by between $8 to $12 billion a year by 2025, according to a report by Accenture.

Bitcoin Exchange Receives License to Operate in New York – Market Watch

Coinbase, a popular California-based digital currency exchange, was awarded a coveted license to deal in digital currencies in New York becoming only the fifth such firm to win approval to operate in the state.

Market Savvy

C$ Hits Nearly Three-Month High as Greenback Slides – Reuters

The Canadian dollar strengthened to a nearly three-month high against its US counterpart, one day before a Bank of Canada interest rate decision and updated outlook, as a New Year selloff of the greenback deepened.

Australian Dollar Jumps After Trump Says Strong Greenback is ‘Killing’ US – The Sydney Morning Herald

The Australian dollar has hit a fresh two-month high against the US greenback, which fell sharply after comments from US President-elect Donald Trump.

Sri Lankan Rupee Weaker on Foreign Bank Dollar Demand – Nasdaq

The Sri Lankan rupee traded weaker due to importer dollar demand, after sales by foreign banks had helped the US currency to edge up in the previous two sessions, dealers said.