Top Headlines

Fourth Trader Wins Unfair Dismissal Claim Against Citi – Profit & Loss

Baris Ozkaptan has become the fourth former Citi FX trader to win a claim of unfair dismissal against the bank.

Pound Below $1.24 on Scottish Independence Vote Fears – Financial Times (subscription)

Sterling is down on reports that Scotland could call a second independence referendum as early as next month.

Remove the Handcuffs – Profit & Loss

The widening of FX spreads reflects the nervousness felt by many liquidity providers over pricing Cable in early Asia.

Dutch Relations with Euro Up for Debate After Lawmakers Commission Probe – Reuters

The Netherlands’ future relationship with the euro will be comprehensively debated by its parliament following an election in March, after lawmakers commissioned a report on the currency’s future.

Pound to Euro Rate This Week: Why Trump’s Tax Plans Could be Huge for the Single Currency – Pound Sterling Live

Pound sterling retains a mildly positive tone heading into month-end and on balance we would expect this trend to extend a while yet.

Dollar Edges Up as Market Awaits Details on Trump’s Tax Plans – Reuters

The dollar recouped some ground after dipping to a two-week low against the yen in Asian trading, but it lacked momentum as investors awaited this week’s speech by US President Donald Trump for clues on tax reform.

Specs Lift Long US Dollar Bets – Reuters

Speculators increased bullish bets on the US dollar for the first time in seven weeks, according to Commodity Futures Trading Commission data and calculations by Reuters.

The Border Adjustment Tax Could Lead to Another Great Depression – Forbes

Most economists do agree that the dollar is likely to rise significantly if this proposal is adopted.

Picking a Fight Over China’s Currency Will Snowball: Analyst – CNBC

If US President Donald Trump proceeds with plans to label China a currency manipulator, the confrontation would likely escalate beyond trade, David Roche, global strategist at Independent Strategy, told CNBC.

Mexico’s Carstens: New FX Hedges Does Not Mean No More Hikes – Reuters

Mexican central bank Governor Agustin Carstens said in an interview that a new FX hedge program unveiled last week did not necessarily mean that the central bank would not adjust interest rates again.

Emerging-Market Currencies on the Rise After Post-Election Rout – Wall Street Journal (subscription)

Many major emerging-market currencies have clawed back the losses they suffered after Donald Trump’s election, the surest sign yet that investors believe accelerating global growth and a commodity-market rebound will continue.

Malaysia’s Currency Curbs Boomerang on Bond Markets – Reuters

When Malaysia forced foreign investors in its markets not to dabble in offshore derivatives in its currency last year, its target was speculative pressure on the ringgit, but it appears to have shot itself in the foot.

Zimbabwe Is Staring at Currency Chaos Again – Financial Times (subscription)

A decade on from hyperinflation, signs grow of another economic meltdown.

Regulatory News

Brussels Sets Out Tough New Line on Equivalence – Financial Times (subscription)

The City of London’s hopes of maximising access to the EU are set to be dealt a blow by European Commission plans to take a tough stance on rules that could provide a post-Brexit lifeline for the UK financial sector.

Esma Stands Strong on Variation Margin Rules Deadline – The Trade

EU regulator confirms the 1 March deadline for variation margin rule is still in place, despite the US being given a six-month relief period.

EC Rebuffs Euro Clearing Relocation Policy in Emir Review – Risk (subscription)

UK pushes back against French demands to shift CCP business post-Brexit.

Competing Priorities Bog Down Efforts to Quickly Roll Back Dodd-Frank – Wall Street Journal (subscription)

After weeks of high expectations for a swift Dodd-Frank rollback with a Republican in the White House, the reality of a hard slog is beginning to set in on Capitol Hill.

China FX Regulator Says Strengthening Supervision of Forex Market – Reuters

China’s FX regulator said that it will strengthen supervision of the foreign exchange market in 2017, while improving policy transparency and promoting the further opening of financial markets.

Citi Says US Regulators Are Investigating Its Foreign Hiring Practices – Bloomberg

Citigroup said US authorities including the Securities and Exchange Commission are investigating the bank’s hiring of employees with ties to foreign government officials.

Company News

Brexit Effect Shakes Up London Dealmaking – Financial Times (subscription)

Currency devaluation and cheap capital clash with political uncertainty.

Jones Tapped as Chief Growth Officer by 360T – Profit & Loss

360T Group has appointed Simon Jones for a newly created role – chief growth officer – and made him a member of 360T’s global executive board.

P&L Talk Series with Tod Van Name – Profit & Loss

Profit & Loss talks to Tod Van Name, Bloomberg’s global head of FX and commodities electronic trading, about how technology is changing the way that corporate treasurers operate.

Eurex Set to Expand FX Derivatives Suite – FOW (subscription)

Eurex has become the latest market to say it is looking to boost its foreign exchange segment to coincide with the upcoming bilateral margin rules.

Gain Capital Is Set to Become the Biggest US Retail FX Provider – Bloomberg

The company will add about 40,000 customer accounts from rival Forex Capital Markets, which is exiting the US market after it was fined $7 million for fraud and co-founders Dror “Drew” Niv and William Ahdout resigned.

Market Savvy

C$ Posts One-Week High on Inflation Spike Before Paring Gains – Reuters

The Canadian dollar notched a one-week high against its US counterpart after data showed a spike in domestic inflation, but some gains were pared ahead of a Bank of Canada interest rate decision next week.

Indian Rupee Hits Three-Month High, Asia Currencies Firm Ahead of Trump Speech – Reuters

The Indian rupee set a three-month peak and the Thai baht hovered at a four-month high, as investors looked to US President Donald Trump’s speech to Congress later this week for fresh catalysts.

LatAm Currencies Weaken on Lower Commodities, US Policy Uncertainty – Reuters

Latin American currencies weakened, weighed down by falling commodity prices and uncertainty over US economic policy.