Top Headlines

Fired Barclays Trader Sues to Win Back Job Lost in FX Probe – Bloomberg

David Fotheringhame, who is suing for unfair dismissal, was sacked after a $150 million settlement between Barclays and the Department of Financial Services, New York’s banking regulator.

Yen Steams Ahead as BOJ Taper Talk Gathers Momentum – Reuters

The US dollar skidded further to a six-week low against the Japanese yen after the Bank of Japan’s move to trim its government bond (JGB) purchases in the previous session stoked speculation it would ease its massive monetary stimulus.

Asian Central Banks Push Back, Sending Dollar Bears a Warning Sign – Bloomberg

Dollar bears take heed: Asian central banks may be putting the brakes on the greenback’s slide.

Sterling Dips Below the $1.35 Line as Data Eyed – Reuters

Sterling fell below the $1.35 line for the first time in a week as investors locked in profits after a rally, though some decent economic data stopped it dropping further.

Euro Defies Treasury Market’s Gravitational Pull – Wall Street Journal (subscription)

Unusually, the single currency surged against the US dollar as German bond yields collapsed.

Renminbi Steadies After PBoC Signals Greater Flexibility – Financial Times (subscription)

The Chinese currency steadied after dipping after the People’s Bank of China signalled greater flexibility for foreign currency trading.

China Central Bank Adviser Says Market Will Play Bigger Role in Setting Yuan – Bloomberg

China’s move to tweak its management of the yuan fixing mechanism shows authorities’ desire to further liberalize the exchange rate, according to an adviser to the People’s Bank of China.

EU Risks Global Bank Crisis If It Blocks Brexit Deal, UK Warns – Bloomberg

The European Union risks opening the door to another global financial crisis if it refuses to give London’s bankers a good trade deal, two senior UK ministers said, as the finance industry emerged as a key battleground for Brexit talks.

Bitcoin’s 43% Arbitrage Trade Is a Lot Tougher Than It Looks – Bloomberg

It’s the kind of market anomaly that savvy traders usually devour in fractions of a second: bitcoin prices in South Korea are 43 percent higher than those in the US.

Regulatory News

Trump Administration Waives Punishment for Convicted Banks, Including Deutsche – Which Trump Owes Millions – International Business Times

The Trump administration has waived part of the punishment for five megabanks whose affiliates were convicted and fined for manipulating global interest rates.

Fed’s Mester: Financial Stability Is Important to Fed Policy – Wall Street Journal (subscription)

‘We must continue to hone our methods of assessing financial system vulnerabilities’.

Bitcoin Is Not a ‘Credible Competitor’ to the Dollar, Fed’s Kashkari Says – CNBC

Despite the competition heating up within the burgeoning digital currency world, none of the products represent a viable threat to the US dollar, Minneapolis Fed President Neel Kashkari said.

Even the SEC Is Poking Fun at Cryptocurrency Mania Now – Bloomberg

The US Securities and Exchange Commission may have hit on a foolproof way to boost its popularity: piggyback the passion for blockchain.

South Korea Clampdown on Bitcoin Gathers Pace – Financial Times (subscription)

Regulators probe banks’ compliance with anti-money laundering rules.

Company News

Nex Hires Senior Buy Side Sales Staff – Profit & Loss

Eva Connors has joined Nex Markets as director of buy side sales for the East Coast of the US.

Redline Enables Bitcoin Futures Trading – Profit & Loss

Redline Trading Solutions is now supporting bitcoin futures trading on the CME and CBOE platforms.

FIS Signs Third Client to Derivatives Post-Trade Utility, Targets Further Evolution – The Trade

Non-bank derivatives broker Wedbush Futures joins Barclays and Credit Suisse on utility as vendor drives componentised services model.

Market Savvy 

South African Rand Rocked by Fake Zuma Reports – Financial Times (subscription)

The South African rand endured a rollercoaster trading session, including a spike of more than one per cent in five minutes that was quickly reversed, with investors suggesting “dubious” news reports may have influenced algorithmic traders to cause the sharp moves.

South Korea Balances Worries Over Won with Pressure to Keep US Happy – Financial Times (subscription)

South Korea’s won was the best performing emerging market currency last year, rising nearly 13 per cent, and further gains seem set to follow on the back of thawing tensions with North Korea.