Top Headlines

Fired Barclays FX Trader Gives Court First Look at Last Look – Bloomberg

David Fotheringhame says there was nothing wrong with the way he applied a tool that blocked some unprofitable currency trades to all clients, rather than just “toxic” ones.

Euro Falls from Three-Year High, Bitcoin Plunges – Reuters

The euro fell half a percent as investors sold the currency after its best three-day performance in nearly two years, as sources said the European Central Bank was unlikely to ditch a pledge to keep buying bonds at next week’s meeting.

Euro Speculators Amass the Biggest Long Positioning Ever: Chart – Bloomberg

Hedge funds and other speculative investors have amassed the heaviest long positions on the euro ever, according to the latest CFTC data.

Dollar Slide Deepens as Euro Strength Saps Stocks – Bloomberg

Despite a US holiday, the dollar dominated trading as it headed for a fourth day of declines, weakening against every major currency.

Sterling Drops Slightly After UK Inflation Dips – Reuters

Sterling dropped slightly against the dollar after data showed UK inflation eased off its post-Brexit-vote high, although the pound remains close to its highest levels since the vote to leave the European Union in 2016 after a recent rally.

Five Markets Charts That Matter for Investors – Financial Times (subscription)

Pound heads nearer major level, precious metals and the dollar and US earnings.

Lawsuit in US Accuses Nine Banks of Rigging Canadian Rate Benchmark – Reuters

According to the Fire & Police Pension Association of Colorado, the banks hoped to reduce interest they would owe investors on CDOR-based derivatives transactions in the United States, including swaps and Canadian dollar futures contracts, and generate potentially billions of dollars of improper profit.

Deutsche Bank CEO Sees Far Fewer Than 4,000 Brexit-Related Moves: Paper – Reuters

Deutsche Bank’s chief executive expects to move far fewer than 4,000 jobs to Frankfurt following Britain’s departure from the European Union, he told Swiss daily Neue Zuercher Zeitung.

Emerging Markets Seek to Forge Their Own Paths – Financial Times (subscription)

Assets and economies have done well despite higher US interest rates.

Regulatory News

Any Rule on Bitcoin Must Be Global, Germany’s Central Bank Says – Reuters

Any attempt to regulate cryptocurrencies such as bitcoin must be on a global scale as national or regional rules would be hard to enforce on a virtual, borderless community, a director at Germany’s central bank said.

PBOC Official Says China’s Centralized Virtual Currency Trade Needs to End: Source – Reuters

A senior Chinese central banker says authorities should ban centralized trading of virtual currencies as well as individuals and businesses that provide related services, an internal memo from a government meeting seen by Reuters showed.

Singapore Central Bank Head Hopes Cryptocurrency Tech Will Survive ‘Crash’ – Reuters

The head of Singapore’s central bank said he the hoped the technologies underpinning cryptocurrencies such as blockchain would not be undermined by an eventual crash in the digital money.

Markets, Regulators Not Yet United on Mifid II – Waters Technology (subscription)

To be able to consume the reported data – as well as to perform spot-checks on its accuracy – the local regulators have been tasked with building out their own IT systems.

Company News

Goldman FX Man Moves to Crypto Side – Profit & Loss

B2C2, a cryptocurrency market maker, has announced the appointment of Phillip Gillespie as CEO of B2C2 Japan.

The Buy-Side and MiFID II: It’s Business as Usual – The Trade

After months of blood, sweat and tears in preparation for one of the industry’s most ground breaking legislative changes, MiFID II’s arrival on 3 January has failed to stunt activity at major asset management firms across Europe.

Six of the World’s Largest Asset Managers Rule Out Bitcoin – Financial News

Six of the world’s largest asset managers have categorically ruled out investing in bitcoin, despite the price of the cryptocurrency jumping from $1,000 at the start of last year to a high of almost $20,000 in December.

Market Savvy

Bitcoin Slides 18 Percent on Crackdown Fears; Crypto Rivals Also Plunge – Reuters

Bitcoin tumbled 18 percent to a four-week trough close to $11,000, after reports that a ban on trading of cryptocurrencies in South Korea was still an option drove fears grew of a wider regulatory crackdown

Canadian Dollar Bulls May Get Small Comfort from BoC Rise – Financial Times (subscription)

Markets consider a quarter-point interest rate rise in Canada virtually a done deal – with just a modest risk to recent strong gains in the Canadian dollar that has seen it strengthen from the C$1.29 level against the dollar to about C$1.24 in less than a month.