Malaysia’s Central Bank Plans to Name and Shame Errant Lenders

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Top Headlines

Malaysia’s Central Bank Plans to Name and Shame Errant Lenders – Bloomberg

Malaysia’s central bank will crack down on wrongdoing in the foreign-currency market, such as fixing of the exchange rate, to ensure stability in the ringgit, Governor Muhammad Ibrahim said.

Dollar Edges Up as Yields Rise But Trump Policy Concerns Cap Gains – Reuters

The dollar edged up against the yen and euro, pulling away from recent lows, but gains were capped as investors focused on a showdown between US President Donald Trump and members of his own party over a new healthcare bill.

Brexit Risks, BoE’s Vlieghe Pull Sterling Off Highs – Reuters

Sterling fell against the dollar and euro, retreating from the previous session’s one-month highs, as investors braced for Britain’s beginning the formal process of leaving the European Union next week.

Few Lasting Benefits from Pound’s Fall, Bank of England Warns – Financial Times (subscription)

Officials express irritation over former governor’s upbeat Brexit stance.

Euro Is a Scapegoat for Populists, Warns ECB Chief Economist – Financial Times (subscription)

Monetary union is being wrongly scapegoated by European populists for the continent’s economic ills, the chief economist of the European Central Bank has warned ahead of the 60th anniversary of the founding of the EU.

Barclays the Latest Bank to Ditch Euro Below Parity with Dollar Call – Reuters

Barclays became the latest big bank to back off its forecast for the euro to fall below parity with the dollar, saying that it now sees the single currency falling to as low as $1.03 this year before gradually recovering.

Yen Looks to End Its Longest Winning Streak in Six Years – Financial Times (subscription)

Weakness in the US dollar, spurred this week about uncertainties about US President Donald Trump’s ability to push through his pro-business agenda, has buoyed the Japanese currency.

Mexican Peso Is No More Than 10 Percent Undervalued: Carstens – Reuters

Mexico’s peso currency is still undervalued, but by no more than 10 percent, Central Bank Governor Agustin Carstens said in an interview with Bloomberg.

South Korea Says Can’t Rule Out US Branding It a Currency Manipulator – Reuters

South Korea’s finance minister said the possibility of the United States branding South Korea a currency manipulator could not be ruled out, if the United States changes its criteria.

Swiss Central Bank Bought Another 67.1 Billion Sfr in FX in 2016 – Reuters

Switzerland’s central bank bought another 67.1 billion Swiss francs (54.17 billion pounds) worth of foreign currencies in 2016, almost a quarter less than the previous year, in its effort to fight the appreciation of the safe-haven franc.

Oil Tightens Its Noose Around Currency Market as Rout Deepens – Bloomberg

Oil is re-asserting its stranglehold on the currencies of energy producers. 

Egypt Attracts Foreign Investment as Currency Falls – Financial Times (subscription)

After a radical reform, investors are returning, but can Cairo stay the course?

FX: The Benefits and Costs of In-House Banking – Euromoney

In-house banks offer the prospect of more efficient management of FX exposures for corporations, but putting the necessary infrastructure in place presents a considerable implementation challenge.

Are Robo-Advisers Equipped to Handle Currency Volatility? – Morningstar

Currency markets are often considered the enemy of a quantitative multi-asset investor.

Post-Bitcoin Technology Has Geeks, Giants, and Hackers Excited – Bloomberg

“We’ve built an unstoppable, uncensorable world computer,” says one blockchain developer.

Regulatory News

EU to Probe Fears Firms Are Exploiting MiFID II Loopholes – Law360 (subscription)

Europe’s executive arm will investigate whether investment firms have found a way to circumvent sprawling financial services reforms due to enter force next January, according to a letter.

Esma’s Maijoor Criticises Europe’s Clearing Plan – FOW (subscription)

Chair of the European regulator Steven Maijoor has criticised the European Commission’s recent proposals on central counterparty resolution and recovery.

Buy Side May Have to Take on CCP Losses: FSB’s König – Risk (subscription)

Exempting ailing banks from CCP wind-up process could force wider allocation of losses.

Acting SEC Chair Plans Test to Lower Exchange Fees – Reuters

The acting head of the US Securities and Exchange Commission has directed the regulator to launch a pilot plan that would test how the market would be affected if exchanges lowered the fees they charge brokers to execute trades.

Company News

Deutsche Bank Commits to London By Securing New HQ – The Telegraph

Deutsche Bank has agreed a deal to move to a new City headquarters, defying fears that large financial institutions are planning to leave the capital after Brexit.

Citi Says EU ‘Equivalence’ Regime No Answer to Brexit Banking Question – Reuters

British-based banks would be foolhardy to expect to retain access to European Union markets in return for sticking closely to the bloc’s rules after Brexit, a senior banking official said.

Warning Lights Flashing for Financial Conditions: ING – Pound Sterling Live

Analysts at Dutch lender ING have written to clients telling them that the warning lights are flashing on the global financial marketplace.

Market Savvy

Brazil Real Slips on Narrow Win for Outsourcing Bill – Reuters

The Brazilian real weakened after the country’s lower house of Congress approved a government-sponsored bill by a narrower margin than expected, raising concerns of fading support for a planned pension reform.

The Australian Dollar Remains Under Pressure – Business Insider

The Australian dollar continued to weaken overnight, both against the US dollar and the major crosses.

C$ Dips with Oil Prices Amid Uncertain US Policy Outlook – Reuters

The Canadian dollar weakened against the greenback with a fall in oil prices, but losses were muted a day after the Canadian budget as investors grappled with an uncertain outlook for the policies of US.