Top Headlines
Investor Who Backed Brexit Sees Euro Breaking Up Within Five Years – Bloomberg
Now there’s growing speculation Italy’s referendum in December and the elections in France in 2017 might result in more political upsets in Europe, causing some investors to question the future of the euro.
What Will Italy’s Referendum Mean for the Euro? – Bloomberg
Investors reeling from democratic shocks in Britain and the US are worried about Italy’s future in Europe’s monetary union.
Sterling Dips on Euro Bounce, Focus on Draghi Hearing – Reuters
Sterling touched a two-week high against the dollar but slid back against the euro, with the day’s main focus likely to be European Central Bank chief Mario Draghi’s testimony in the European Parliament.
Sterling Dragged Lower by EUR/USD Correction, Is Best GBP/EUR Likely? – Exchange Rates
Foreign exchange analysts are suggesting the British pound to euro exchange rate could test a best level of 1.33 on increased eurozone political risks in the coming months.
Pound Due the Calm After the Storm as Brexit Effect Overshadowed – Bloomberg
After a torrid few months, the omens are lining up for a calmer time ahead for the pound.
Dollar Reverses Some Post-Election Gains on Oil Jitters – Wall Street Journal (subscription)
The dollar weakened sharply against the yen and other currencies in Asia trade as renewed uncertainty over the direction of oil production amplified a selloff after a post-US election surge.
Dollar Retreats from Peaks, Euro Boosted by Fillon Win – Reuters
The dollar extended its losses, retreating from its highest levels since 2003 as US Treasury yields eased from recent peaks.
Stronger Yen, Fall in Oil Weigh on Asian Stocks – Financial Times (subscription)
Stock markets in Asia were mixed, with a stronger yen in response to a weaker dollar putting Japanese shares under pressure and jeopardising their lengthy winning streak.
Yen at 120 Lonely Call No More for Analyst Who Got It Right – Bloomberg
Now the Singapore-based strategist is getting plenty of company from others who are joining him in forecasting the currency will slide to 120 per dollar.
Renminbi Trading Band Strengthened to Start Week – Financial Times (subscription)
The People’s Bank of China started the week by setting the renminbi’s trading band against the dollar stronger – the first such start since October.
Banks Seek to Invest $59 Million in Blockchain Startup R3: Source – Reuters
Banks involved in the blockchain consortium R3 CEV have expressed interest in investing $59 million in the company’s first funding round, less than half its overall target, a person close to the deal said.
Morgan Stanley Goes All Out on Top Ten FX Trades for 2017 – Finance Feeds
A step away from the comfort of the majors could come about in 2017.
ET Poll: Rupee May Slip Below 70 by December as Dollar Adds Muscle – Economic Times
The rupee may plunge past records to a low of 70 a dollar by December as the dollar’s global strength would continue to weigh on the local currency with domestic factors like a cash glut in the banking system dragging down the local unit, 16 traders polled by ET said.
FX Markets Displaying Clear Shift from Economic to Political Drivers – Seeking Alpha
Looking back over the year it’s clear that one of the key themes that’s developed is that of FX markets being increasingly shaped by political rather than economic factors.
Regulatory News
BOJ Has First Loss in Four Years on Hit from FX and Bonds – Bloomberg
The Bank of Japan had its first loss since Haruhiko Kuroda became governor after the value of foreign currency assets fell, it wrote down bond holdings and set aside more money to cover potential future losses on its holdings of government debt.
Ringgit Traders in Limbo after Malaysia Central Bank Move – Reuters
Malaysia’s attempts to force currency traders overseas to stop selling down the ringgit, as investors flee the country’s bond market, has had little discernible impact so far, traders and analysts say.
Trump’s Bank-Regulation Rollback May Get Boost from EU Rules – Bloomberg
The European Union’s plan to grant banks concessions from global standards may encourage President-elect Donald Trump to follow through on his pledge to roll back regulations in the US.
EC Proposes Respite for Derivatives Clearing – The Trade
The European Commission has proposed an easing of clearing and collateral requirements for smaller buy-side firms, as well as changes to implementing stricter capital rules for banks.
Company News
O’Sullivan Joins GTX – Profit & Loss
Vince O’Sullivan joins Gain Capital’s GTX this week as director of foreign exchange sales in London.
Erste Joins TraderTools Network – Profit & Loss
Erste Group Bank has joined the TraderTools Unique Liquidity Network as a market maker in CE3 pairs.
Gold-i Launches MT5 Service – Profit & Loss
Technology provider Gold-I will launch its MT5 Gateway at the end of November, providing brokers using MetaTrader 5 with access to the firm’s MT4 Bridge.
Gain Unveils Transfer Service – Profit & Loss
Gain Capital has announced the Beta launch of ForeignExchange.com, its new international money transfer service, in the UK market.
Market Savvy
Greenback Retreats as Treasury Yields Dip, China Banks Seen Selling Dollars – Reuters
Most emerging Asian currencies rose as the dollar retreated from a near 14-year high with sliding oil prices dragging US Treasury yields lower, while doubts remained over further appreciation in regional units.
Australian Dollar Turning Table on the Pound Rebound – Pound Sterling Live
GBP/AUD has pulled back as the Australian Dollar continues to enjoy its commodity-lead rebound but our studies suggest it could be too early to call the end of the British pound’s rally.
USD/CAD Could Rise to 1.38 – Exchange Rates
Canadian dollar is seen consolidating within a tight range, with oil prices stabilizing around the $48 level.