Mexico Central Bank May Deliver Big Rate Hike After Peso’s Trump Tumble – Reuters
Mexico’s central bank could deliver a bigger-than-expected interest rate hike in a bid to support the peso after the currency was hammered to a record low by last week’s election of Donald Trump as US president.
How Hedging and a Certain Someone Upended the Year of the Peso – Bloomberg
Once one of the Mexican financial system’s greatest strengths, the peso’s liquidity has gone from virtue to liability.
Dollar Pulls Back Ahead of Yellen Testimony – Reuters
The dollar fell back against other major currencies, hit by speculation US Federal Reserve chief Janet Yellen will express concern over the pace of its surge to a 13-and-a-half year high in the past week and an accompanying rise in bond yields.
China’s Renminbi Hits Eight-Year Low – Financial Times (subscription)
China’s renminbi traded near at an eight-year low against the US dollar, as the election of Donald Trump intensified longstanding depreciation pressure.
Yuan’s Slide May Have More to Do with Economics Than Donald Trump – Wall Street Journal (subscription)
China’s currency is being hit by worrying asset bubbles and a continued reliance on stimulus.
London Stock Exchange Seeks to Wrap Up French Clearing House Sale as EU Regulatory Battle Looms for Deutsche Boerse Merger – City AM
The London Stock Exchange Group is whittling down the list of candidates for the sale of its Paris-based clearing business LCH.Clearnet SA and could be in a position to announce a deal before Christmas, City AM understands.
Euro Clearing Shift to EU After Brexit ‘Unlikely’, Says S&P – Financial Times (subscription)
EU authorities are unlikely to succeed in their attempts to move euro clearing activity from London to the continent after the Brexit vote, a leading rating agency has said, warning the move would heap pressure on financial institutions and hurt the euro’s attempts to become a global reserve currency.
Prince Alwaleed Sees Saudi Currency Depeg as Last Resort – Bloomberg
Saudi billionaire Prince Alwaleed Bin Talal raised the possibility that the kingdom may depeg its currency as the country undergoes unprecedented social, political and financial change.
Why It’s a Buyer’s Market for FX Businesses – Profit & Loss
In the past couple of months we have seen a change at the top of the business at two primary venues amidst growing noise of a sale.
Hensarling Says He’s Willing to Tweak Dodd-Frank Overhaul Plan – Bloomberg
House Financial Services Committee Chairman Jeb Hensarling said he’s willing to tweak his plan to overhaul the Dodd-Frank Act before reintroducing it to Congress early next year.
Former UK Regulator Urges Trump Not to Scrap Wall Street Reform – Reuters
The United States must not scrap bank capital requirements introduced at the height of the financial crisis aimed at avoiding more taxpayer bailouts of lenders, an architect of the rules said.
CFTC: ‘Too-Big-to-Fail’ Clearinghouses Resilient to Shocks – Reuters
The top five financial derivatives clearinghouses overseen by the US Commodity Futures Trading Commission and deemed “too-big-to-fail” showed resiliency to market shocks in a series of stress tests, the regulator said.
Major Overhaul of Infrastructure Needed for Next stage of OTC Derivatives Rules – The Trade
Major market infrastructure changes are needed for traders to deal with stricter collateral rules for OTC derivatives.
Foreign Banks Shaken by Malaysia’s Move to Halt Currency Slide – Reuters
Foreign banks in Malaysia were trying to work out how to comply with the central bank’s clamp-down on offshore ringgit trading, a move the broader market views as a form of capital controls.
Icap’s Spencer Says Trump is ‘Undoubtedly’ Good for Business – Bloomberg
Icap’s chief Michael Spencer says a Donald Trump presidency will boost US spending while dismantling what he calls counterproductive regulations, moves that will “undoubtedly” be good for business.
A Stronger Dollar: The Corporate Impact – Financial Times (subscription)
After spending most of the year marking time, the dollar is surging – catching companies off their guard.
Dollar Halts Charge as Bashed Bonds Steady – Reuters
Battered bonds and emerging market currencies enjoyed some respite as the dollar took a breather from a post-US election charge that has taken it to a 13-and-a half year high.
Mixed Session for Asian Equities, Currencies Still Weaker – Financial Times (subscription)
It’s a mixed but relatively subdued day for Asian equity markets, while government bonds are creeping higher and the US dollar is pausing after hitting its strongest level in 13 years.
LatAm Currencies Seesaw on Trump Policy Uncertainty – Reuters
Latin American currencies seesawed as concerns over a potential global trade shock under US President-elect Donald Trump gave way to uncertainty over the policies he will pursue.