PBoC Sets Renminbi Fix Above 6.95 for First time in Over Eight Years – Financial Times (subscription)
The People’s Bank of China set the trading band for the renminbi against the dollar weaker again as the US currency continued to strengthen in the wake of the Federal Reserve’s rate rise.
- China Yuan Weakness Prompts Support Measures – CNBC
- It’s Turning Into a Really Bad Week for China’s Markets – Bloomberg
China Cedes Status as Largest US Creditor to Japan – Financial Times (subscription)
Tokyo top US Treasuries holder as Beijing depletes forex reserves to support renminbi.
China’s Currency Manipulation, Caught in Two Cool Charts – Wall Street Journal (subscription)
It currently costs more to borrow yuan overnight in Hong Kong than it does to borrow it for a year.
Steady as She Goes: BoE Leaves Rates Unchanged – Profit & Loss
The Bank of England’s (BoE) Monetary Policy Committee voted unanimously to maintain Bank Rate at 0.25%.
Sterling Sees Worst Day in Two Months as Dollar Rallies – Reuters
Sterling sank to an almost three-week low against the dollar, hammered along with other major currencies by a broad move higher for the greenback driven by raised expectations for US interest rate hikes next year.
Euro Clearing May Move from London But Only After Brexit: Source – Reuters
The European Union is considering legislative measures to move London’s euro- denominated clearing business to the euro zone, but the changes would apply only after Britain leaves the bloc, an EU official told Reuters.
Dollar Surges as US Prepares for Higher Rates – Wall Street Journal (subscription)
A dollar surge that began after the US election has accelerated with this week’s Federal Reserve interest-rate increase, pointing to a possible reckoning in coming months for economies around the globe.
Mexico Peso Firms After Aggressive Rate Hike – Reuters
Mexico’s peso strengthened after the country’s central bank hiked its benchmark interest rate more than expected in a bid to ease pressure on the currency and slow inflation following the US election victory of Donald Trump.
- Some Say Mexico’s Central Bank Has Done Too Much, Others Too Little – Financial Times (subscription)
A Cheaper Currency Does Not Always Boost Economic Growth – The Economist
The strong dollar can mean trouble for emerging markets.
FX Options a Tempting Solution – But Problems Persist – Euromoney
Although the market for FX options has become more competitive, limitations around liquidity, costs and the availability of pricing data continue to deter many corporates.
The Real Shock in Global Markets in 2016 – Financial Times (subscription)
Markets have broadly navigated shocks and potential fears with less damage than feared.
Where Should I Invest in 2017? – Financial Times (subscription)
Our experts give their investment outlook on Trump, Brexit, emerging markets and more.
Banks Urge Co-Ordinated Asian Reaction to CFTC Swaps Rule – Risk (subscription)
Banks call for Asian regulators to unite against US supervisory overreach.
New Committee to Lead Swaps Identifier Effort – Reuters
A new industry committee responsible for derivatives product identifiers has launched the first in a series of consultations as it eyes an April 2017 launch for testing an automated ISIN creation service for over-the-counter swaps.
Swiss Central Bank Welcomes Federal Reserve Rate Rise – Financial Times (subscription)
Dollar strength set to ease currency pressure and help normalise monetary policy.
Bitcoin is Being Monitored by an Increasingly Wary US Government – Newsweek
Newsweek has learned hundreds of experts inside the nation’s defense and intelligence agencies are now investigating how virtual currencies could undermine America’s long-standing ability to disrupt the financial networks of its foes.
Europe Recognises ICE Clear US as Latest Equivalent CCP – FOW (subscription)
European has recognised ICE Clear US as an equivalent third-country central counterparty under the European Market Infrastructure Regulation, enabling the US clearing house to avoid extra charges.
Businesses Urged to Get Plans for Currency Risk in 2017 – Small Business
In light of major the political events of 2016, businesses are urged to not remain complacent when it comes to mitigating currency risk.
Saxo Sells Uruguayan Subsidiary – Profit & Loss
Saxo Bank has agreed to sell its Uruguayan subsidiary, Saxo Capital Markets Agente de Valores, to DIF Broker, a long-term white label client of the firm.
EM Currencies Regain Composure After Post-Fed Falls – Financial Times (subscription)
Emerging markets currencies may finally be finding a floor after a rough couple of days spent thrashing in the wake of the US Federal Reserve’s decision to raise interest rates.
Ringgit at 14-Month Low as Fed’s Confidence Dents Asia FX – Reuters
The Malaysian ringgit slumped to a 14½ month low and many of its counterparts in Asia were on the back foot after the US Federal Reserve surprised markets this week by signalling a faster pace of rate rises next year.
Rand Continues to Weaken Against Major Currencies – SABC
The South African rand continues to weaken against a basket of major currencies as emerging markets react to the latest move by the US Federal Reserve to hike rates by 25 basis points, the second time in ten years from 0.5% to 0.75%.
Nigeria’s Naira Seen Broadly Stable, Ghana’s Cedi to Firm – Reuters
Nigeria’s naira and some other African currencies are expected to stay broadly stable over the coming week as the tempo of business slows ahead of Christmas festivities but Ghana’s cedi could strengthen, helped by flows from commodity sales.