Top Headlines

Fed Raises Rates, USD Surges in Response – Profit & Loss

The US Federal Reserve increased interest rates by a quarter point today, also indicating that it now expects to increase rates three more times in 2017.

Why the Dollar Rally May Just Be Getting Started – CNBC

The dollar could continue to lap other currencies after surging in the wake of the US Federal Reserve’s interest rate hike on Wednesday.

Sterling Weakens to $1.25, Eyes on BoE, Sales – Reuters

Sterling fell almost half a percent in morning trade in Europe, suffering along with a raft of other currencies against the dollar after the US Federal Reserve raised its forecasts for interest rates next year.

EU Prepares Rule Changes to Target City’s Euro Clearing – Financial Times (subscription)

The EU is preparing rule changes that could deprive London of one of its flagship financial businesses by enabling territorial restrictions on the clearing of some euro-denominated transactions even before Britain leaves the bloc.

Chinese Stocks, Currency Struggle After Fed Raises Rates – China Daily

Chinese stocks and currency struggled on Thursday after the Federal Reserve raised rates for the first time in a year.

After Fed, Eyes Turn to China for Emerging-Market Currency Fate – Bloomberg

Emerging-market investors wary about the dangers of a more hawkish Federal Reserve may need to put their faith in China.

Emerging-Market Stocks, Currencies Fall After Hawkish Fed Signal – Bloomberg

Emerging-market stocks and currencies fell after the Federal Reserve forecast a steeper path for borrowing costs in 2017, dimming the outlook for riskier assets. 

Lenders Plan Not to Renew Deals with Nigeria Central Bank – Financial Times (subscription)

The move, which relates to foreign currency swap agreements between banks and the central bank, risks depleting the country’s dwindling foreign reserves as Nigeria faces a severe dollar shortage, bankers warn.

Coinbase Customer Files Motion to Block IRS from Accessing User Info – Forbes

The motion filed today in San Francisco seeks to quash the summons.

The Currencies to Watch in 2017 – Bloomberg

The pound, krone and rand are the currencies to watch heading into 2017 as technical charts and supportive cross-asset themes signal their recent momentum may continue.

Irrational FX Regulator of the Year – Profit & Loss

Competition is once again fierce – but which rule-maker most deserves the accolade?

Regulatory News

CCP Recovery Role for MEP Swinburne – The Trade

Kay Swinburne will lead the European Parliament’s team on CCP recovery and resolution.

Financial Regulation a ‘Bureaucratic Mess’ Thanks to Dodd-Frank – The Hill

With the imminent departure of SEC Chair Mary Jo White and her top enforcement lieutenant Andrew Ceresney, now is a good time to review the effectiveness of the SEC and other federal enforcement entities.

SNB Remains Vigilant in “Challenging” Forex Market – Reuters

The Swiss National Bank continues to monitor events on the forex markets very closely in what remains a “fraught” environment, SNB Governing Board member Andrea Maechler said.

Three Gulf Central Banks Hike Rates to Avert Currency Pressure After Fed Move – Reuters

Saudi Arabia, Kuwait and Bahrain raised interest rates within minutes of the US Federal Reserve’s decision to do so as they scrambled to avoid downward pressure on their currencies due to low oil prices.

NBU Plans to Start Liberalization of Foreign Exchange Regulation in 2017 – Ukrinform

The National Bank of Ukraine (NBU) in 2017 plans to continue to gradually ease temporary restrictions and start liberalization of foreign exchange regulation system, as well as to develop a concept for approximation of banking regulation, according to the central bank’s press service.

Ethiopia: Deafening Inaction in the Face of the Birr’s Decline – All Africa

One major drag to Ethiopia’s growth aspiration is perhaps the central bank and those we are in charge of the nation’s monetary policy affairs.

Company News

BlackRock Selects HSBC as Custodian in China – Profit & Loss

HSBC Bank (China) has been appointed as the onshore custodian bank for BlackRock, which has been granted approval by Chinese regulators to use the RMB to directly access China’s onshore securities market.

Citi Invests in Cobalt DL FX Post-Trade Processing Blockchain – Finance Magnates

Cobalt DL, a blockchain startup co-founded by former Traiana CEO Andrew Coyne and former Mako FX owner Adrian Patten for developing an FX post-trade processing network, has just announced Citi is an investor and launch client.

Currencycloud Turns to Duco – Profit & Loss

Currencycloud, an international payments engine, has announced that it will use technology from Duco, a fintech that provides data control services for a variety of operational functions including cash, trade-to-cash, and bank cash flow reconciliations.

Market Savvy

Aussie Dollar Slump ‘Knee-Jerk’ Reaction to Fed – The Sydney Morning Herald

Strong hints by the US Federal Reserve that interest rates will rise at a faster pace in 2017 have sent the greenback flying against most major currencies but analysts doubt the Australian dollar will slide much further.

Asian Currencies Fall, Yuan Hits Eight-Year Low After Fed’s Signal – Reuters

Emerging Asian currencies slid against the dollar, with the Chinese yuan hitting an eight-year low after the US Federal Reserve raised interest rates and signalled a faster pace of rate increases in 2017.

C$ Tumbles from Eight-Week High After Fed Rate Hike – Reuters

The Canadian dollar tumbled from an eight-week high against its US counterpart, pressured by lower oil prices and broad gains for the greenback after the Federal Reserve raised US interest rates for the first time in a year.