Top Headlines

FXPA Elects New Officers, Board Members – FXPA

The Foreign Exchange Professionals Association (FXPA) is pleased to announce the results of its elections, which took place last week, and resulted in a slate of new Board members, as well as four officers to serve on the FXPA’s Executive Committee (ExCom).

Form RCI to Probe Bank Negara Forex Losses, Says Anwar – New Straits Times

The huge losses suffered by Bank Negara Malaysia as a result of its venture into the foreign exchange market in the 1990s should be subjected to a Royal Commission of Inquiry, said Datuk Seri Anwar Ibrahim.

Trump Calls Chinese ‘Grand Champions’ of Currency Manipulation – Reuters

President Donald Trump declared China the “grand champions” of currency manipulation on Thursday, just hours after his new Treasury secretary pledged a more methodical approach to analyzing Beijing’s foreign exchange practices.

China Says No Intention of Using Currency Devaluation to Its Advantage – Reuters

China said it has no intention of using currency devaluation to its advantage in trade, responding to an assertion from US President Donald Trump that China is the “grand champions” of currency manipulation.

Dollar Slips as “Trumpflation Trade” Fades – Reuters

The dollar slipped and was set for its first week of falls in three, after the new US finance chief poured a little cold water on the “Trumpflation trade” that had taken the greenback to 14-year highs earlier this year.

Dollar-Watchers Put Real Yields Under Close Scrutiny – Financial Times (subscription)

“What’s up with the dollar?” has been the recurring question for investors lately as the reserve currency has slipped from a 14-year high set at the start of January.

The Trump Team’s Evolving Currency-Market Rhetoric: A Timeline – Bloomberg

Donald Trump continues to be perhaps the biggest single influence over the dollar, more than three months after his shock election victory.

Sterling on Course for Strongest Week in a Month – Reuters

Sterling slipped from a two-week high to the dollar but was still on track for its strongest week since January as concerns about politics in the United States and Europe took investors’ focus off immediate Brexit worries.

Le Pen Aides Met UBS, BlackRock, Barclays to Explain Euro Exit – Bloomberg

Top advisers to French presidential candidate Marine Le Pen have met with strategists and analysts from BlackRock, Barclays and UBS Group, among other firms to explain their economic program and plans to withdraw France from the euro.

Mexican Peso Rises to Highest Point Since Day After US Presidential Election – Financial Times (subscription)

The Mexican peso’s rebound continued as the currency rose to its highest level against the buck since the day following Donald Trump’s surprise election win last year.

Korea Pushes Back Against US Over Currency – Financial Review

South Korea pushed back against US pressure over its foreign exchange policy and current account surplus, with the central bank governor maintaining that the nation only acts to check extreme swings in the won.

Currencies on Five Continents Flag Risks to Growth Narrative – Bloomberg

While they’ve driven gains in 2017, currencies of commodity-led nations such as Australia, South Africa and Brazil are struggling to regain the momentum they enjoyed before Donald Trump’s election sparked a year-end reversal.

The Problem with Gold-Backed Currencies – Seeking Alpha

There is something intuitively appealing about the idea of a gold-backed currency – money backed by the tangible value of gold, i.e. “the gold standard.”

Regulatory News

EU Watchdog Signals Wriggle Room Over New Derivatives Rule – Reuters

Regulators across the European Union can use some discretion in how they will enforce a new derivatives market rule from March 1 as long as firms show they are making an effort to comply, the bloc’s securities watchdog said.

Participants Keen to Conclude Basel III Reforms – Reuters

All participants in talks on new Basel III banking reforms are keen to bring the process to a conclusion, Basel Committee Secretary General William Coen told the French Senate’s finance commission.

Clearing Portability Under Threat as FCM Pool Shrinks – Risk (subscription)

Failure of big clearing brokers could see clients unable to move to stable competitors.

Trump Considering US Bancorp’s Davis for Fed Board Seat, Source Says – Bloomberg

Donald Trump is considering nominating US Bancorp Chief Executive Officer Richard Davis for the Federal Reserve Board, said people familiar with the matter, as the president prepares to start reshaping the central bank’s approach to monetary policy and Wall Street oversight.

Trump Appointee Gary Cohn to Stay Clear of Goldman Matters – Financial Times (subscription)

The FT learnt that as recently as a year ago Mr Cohn, then number two at Goldman, was spearheading its lobbying at the US derivatives regulator on rules prompted by the role swaps contracts played in the 2008 financial crisis.

Republicans Call on Fed to Halt Rules Until Trump’s Picks Are in Place – Bloomberg

Key Republicans in the US House told the Federal Reserve not to issue new rules until President Donald Trump’s pick to lead regulation of Wall Street at the agency is confirmed.

Wall Street Girds for Regulatory War – Bloomberg

A new mood of hope and determination is washing over big US banks.

Bank of Canada: Cryptocurrencies Need to Be Regulated – Eastern Daily

Researchers from the central bank of Canada are of the opinion that private digital currencies will not survive in the future, unless the government gets involved in some way.

DFSA Signs MoU with European Securities and Markets Authority – Zawya

The Dubai Financial Services Authority (DFSA) and the European Securities and Markets Authority (ESMA) have entered into information sharing and cooperation arrangements regarding DIFC based central counterparties compliance with conditions set out in The European Union’s Market Infrastructure Regulation (Emir).

Company News

Global Head of FX Exits Scotiabank – Profit & Loss

Camilla Sutton has left her position as global head of foreign exchange at Scotiabank.

China Is Developing Its Own Digital Currency – Bloomberg

After assembling a research team in 2014, the People’s Bank of China has done trial runs of its prototype cryptocurrency.

Bitcoin Worth More Than Gold as Price Reaches All-Time High – Sydney Morning Herald

The crypto currency known for its anonymity and decentralised nature reached an all-time high, making it more valuable than gold in Australia.

Giancarlo’s CFTC May Give Fintech Innovators Their Own Sandbox – Bloomberg

The result could radically change the derivative industry’s settlements and recordkeeping processes, industry observers told Bloomberg BNA.

Market Savvy

Won Scales Four-Month High, Most Asia FX Poised for Weekly Gains – Reuters

Asian currencies edged higher, with the South Korean won hitting a four-month high, as uncertainty over details of the Trump administration’s tax reform plan weighed on the dollar.

Emerging Stocks, FX Eye Weekly Gains Despite US Policy Concerns – Reuters

On track for healthy weekly gains, emerging markets hit a soft spot with stocks pulling back from a 19-month high and currencies struggling to make headway against a tepid dollar as lower commodity prices and questions over US policy weighed.

Rouble Firms Slightly Against Dollar in Light Trade – Reuters

The Russian rouble firmed slightly against the dollar in early trade, pricing in gains in oil prices the previous day when the Russian market was closed.