Top Headlines

Pound Sterling Becomes Best Performing Major Currency in the World After Donald Trump Win – Independent

Sterling has climbed against all of major currencies and broke the $1.26 barrier against the dollar.

Pound Sterling Value Rise: How Has It Gone from the Worst to Best Performing Major Currency? – Independent

Traders might be looking at the prospect of destabilising victories for populists in European elections and are upgrading their view of the relative prospects for sterling in that light.

Dollar Rises to Nine-Month High as Trump Seen Spurring Inflation – Bloomberg

The dollar advanced for a fourth day on bets that higher spending under Donald Trump’s administration will boost economic growth and inflation, convincing the Federal Reserve to raise US interest rates.

Asian Currencies Fall as Trump Influences Investors – Wall Street Journal (subscription)

Yen, rupiah and yuan drop while bond yields rise.

CME Group CEO to Retire – Profit & Loss

CME Group’ s CEO, Phupinder Gill, has informed the company’s board of directors that he is retiring from the organisation and board, effective, December 31, 2016.

Performance Bonds for Bankers? – Profit & Loss

A new post by Liberty Street Economics, which operates under the auspices of the Federal Reserve Bank of New York, argues the case for performance bonds for bankers to help combat misconduct.

Losing Euro-Denominated Clearing Would Cost London 83,000 Jobs – Financial Times (subscription)

Job losses threaten to have ‘a significant domino effect on jobs and revenue’.

CME Said to Consider Dublin Clearing Options Amid Brexit Fallout – Bloomberg

CME Group is examining options in Dublin to ensure its clearinghouse keeps access to European Union customers after the UK leaves the bloc, according to people familiar with the discussions, as financial giants try to figure out how to protect links with the region.

On Reflection: Gil Mandelzis on Life at the Top of EBS BrokerTec – Profit & Loss

Gil Mandelzis talks about his time as CEO of EBS BrokerTec and the challenges facing the industry.

Carry Trades in Developing-Nation Currencies Tumble – Straits Times

Bets on higher-yielding currencies from Indonesia to Brazil are unwinding at the fastest pace since 2011 as soaring US Treasury yields undermine the case for riskier government debt.

King Dollar’s Role as the Global Reserve Currency Called into Question After Trump’s Win – CNBC

The Chinese renminbi might look like a direct winner from potential uncertainty surrounding a Donald Trump presidency, but analysts warn the country’s trade surplus and lack of government transparency could offset the currency’s popularity as a global currency reserve.

Chinese State Media Calls Currency Move ‘Bold’ but ‘Far from Enough’ – Indian Express

India’s new policy to scrap high value notes is considered a “risky, but a bold and decisive step”, it said.

Indians Endure Currency Pain with Touch of Schadenfreude – Financial Times (subscription)

Many see withdrawal of banknotes as a price to be paid for eliminating black money.

FX and the Herd Mentality – Profit & Loss

Undesirable retail trading behaviours reflect a broader trend taking place in the foreign exchange market.

Big Banks Lead Way in FX Blockchain Patent Filings – Pensions & Investments (subscription)

Patent applications are surfacing for blockchain technology in foreign exchange, but that doesn’t mean the technology known for bitcoin transactions will soon be applied to the world’s largest over-the-counter market.

Regulatory News

Full Repeal of Dodd-Frank Isn’t Main Focus of Trump Transition – Wall Street Journal (subscription)

President-elect’s team is targeting individual provisions of law.

Massive Retail FX Revival in America on the Way as Donald Trump’s Transition Team Begins Abolishing the Dodd-Frank Act – Finance Feeds

As the Republican Party’s transition team begins to invoke its policies, one item on the agenda is the abolition of the Dodd-Frank Act which caused many retail FX firms to exit the US market.

Trump May Tap Republican Commissioner to Lead Swaps Regulator – Bloomberg

J. Christopher Giancarlo, a Republican member of the Commodity Futures Trading Commission who has close ties to the derivatives industry, is a leading candidate to head the regulator in the Trump administration, according to people familiar with the matter.

German Watchdog Warns Against Financial Deregulation After Trump Win – Reuters

Germany’s financial watchdog warned against a loosening of post-financial crisis bank regulations.

New Committee Tackles Exchange Rate – Myanmar Times

A committee chaired by officials from the finance ministry and the Central Bank of Myanmar has been created to deal with exchange rate volatility.

Company News

The GBP/USD Exchange Rate Best May Extend as SEB Says Buy Sterling – Exchange Rates

Donald Trump’s victory failed to see the predicted US dollar flash crash that FX markets had presumed, with the GBP to USD exchange rate soaring to a five-week best conversion.

EUR-USD Exchange Rate Tipped to Fall to 1.08 Says BNP Paribas – Exchange Rates

BNP Paribas believes that their year-end exchange rate forecasts of 1.08 in the EUR/USD and 108 in the USD/JPY will arrive much earlier.

Playtech Delves into B2B Services, Buys CFH Group for $120m – Finance Magnates

The deal has already been approved by the FCA with the change of control process of CFH Group.

Market Savvy

Higher US Yields Deepen Asia Outflow Worries; Ringgit Hit – Reuters

Emerging Asian currencies and bonds extended losses, with Malaysia’s ringgit near 10-month lows on growing fears that higher US Treasury yields on US president-elect Donald Trump’s policy stance may spur more regional capital outflows.

Emerging Market Bond, Currency Markets Face ‘Meltdown’ After Trump’s Win – CNBC

US President-elect Donald Trump appears to have burst the bond bubble, putting emerging markets from Mexico to Indonesia at the sharp end of a sell-off.

KL Markets Brace Themselves for Bumpy Ride Amid Ringgit Woes – Straits Times

Malaysian financial markets are bracing themselves for the prospect of further pressure on the ringgit after the central bank’s shock decision to severely curtail trading in the currency, which has fallen to its weakest levels in more than a decade.