Top Headlines

Pound Dips Below $1.24 as Mark Carney Confirms He Will Leave BoE in June 2019 – Telegraph

As Mark Carney faces a grilling from the Treasury Committee, the pound has extended its fall and has dipped below $1.24.

Carney Says Blaming Low Rates for Inequality is a Deflection – Bloomberg

Mark Carney said arguments by politicians that loose monetary policies in the UK and elsewhere have widened inequality miss the mark.

GBP/EUR in Massive 1% Fall on Reports of Government Strategy Chaos – Pound Sterling Live

Pound sterling is under the hammer with foreign exchange traders turning attention away from the Trump trade and back to their 2016 favourite – the Brexit trade.

Sterling Hammered Again as Dollar Rally Halts – Reuters

Sterling sank by more than one percent against the euro, handing back much of three solid days of gains as investors turned their eyes back to burgeoning political risks from its moves to leave the European Union.

Dollar Softens as ‘Trumpflation Trade’ Fades – Financial Times (subscription)

The “Trumpflation trade” is fading, softening the dollar and leaving US government bond yields to nudge down from multi-month highs as equity markets stabilise.

Renminbi Trading Band Set at Weakest Level Since 2008 – Financial Times (subscription)

China’s central bank isn’t letting off the accelerator with its latest fix for the renminbi’s trading band against the dollar, which takes it back to a level of weakness not seen since 2008.

Mexico Says Has Tools to Fight Financial Volatility – Reuters

Mexico has an array of tools to face down financial volatility in the wake of the US presidential election, Finance Minister Jose Antonio Meade said, after Donald Trump’s victory sent the peso currency into a tailspin.

The Euro-Dollar Parity Bet Is Back – Bloomberg

Donald Trump’s electoral upset has breathed new life into the bet that diverging economic paths will drive the euro toward parity with the dollar for the first time since 2002.

Traders Salivate as Volatility Returns – Wall Street Journal (subscription)

Trump’s election has turned markets topsy-turvy, a boon for Wall Street and day traders alike who hope to profit from the increased trading volume.

Regulatory News

SEC’s White Says She Will Step Aside When Obama Leaves Office – Bloomberg

Mary Jo White has stepped to the front of the line of financial regulators moving aside for Donald Trump’s administration.

SEC Weighs Cyber Risks to Proposed ‘Flash Crash’ Database – The Hill

The SEC is weighing cybersecurity concerns as it decides whether to approve plans for a new program intended to address flash crashes in the market.

Audit of US Stress Test Ready, May Aid Dodd-Frank Overhaul Fight – Reuters

An independent study of the financial costs and benefits of Wall Street ‘stress tests’ could be released as soon as Tuesday and may strengthen calls to reform US banking rules, said sources familiar with the report.

Trump May Save Banks Billions by Disrupting Global Rules – Bloomberg

The election of Donald Trump may allow banks to dodge the full impact of global regulators’ post-2008 crisis crackdown.

ESMA Proposes Pension Funds Central Clearing to Begin in 2019 – The Trade

ESMA has proposed a further two-year delay from central clearing for pension funds, which were set to begin complying from June 2017.

Company News

Saxo Adds Cross Collateralisation to PB Solution – Profit & Loss

Saxo Bank is boosting its FX prime brokerage solution with the addition of a cross-collateralisation facility between PrimeXM sites in New York, London and Tokyo where it provides FX direct market access.

Market Savvy

Battered Yen Faces New Ball Game, More Losses After Trump Win – Reuters

The Japanese yen, jolted in a 750-plus point range against the dollar in the week since Donald Trump’s presidential win, could fall back towards a February low of 115 yen on prospects of rapid US interest rate increases.

Volatility Raises Fear of Currency Exodus – New Straits Times

Investors fear another currency exodus from emerging markets as foreign exchange volatility is not over for Malaysia and its Asian neighbours in the near term.

CAD Hits New Eight-Month Low, Canada’s Yields Surge – Reuters

The Canadian dollar hit a new eight-month low against its firmer US counterpart before paring some losses, and Canada’s bond yields surged as investors bet that US President-elect Donald Trump will pursue policies that raise inflation.