Top Headlines

Pound Sterling Hits New 31-Year-Low Ahead of Theresa May’s Brexit Speech – Independent

The currency slumped to more than a three-decade low, excluding the flash crash on 7 October. 

Sterling Options Signal More Turmoil as May Speech, Ruling Loom – Bloomberg

A measure of anticipated swings for the pound climbed to the highest in three months before UK Prime Minister Theresa May’s speech on Brexit plans Tuesday and a court ruling this month on whether the British leader or Parliament carries the power to invoke the exit.

Pound to Euro Exchange Rate to Fall to Par Say Deutsche Bank – Pound Sterling Live

Pound sterling was on offer at the start of the new week as the hard-Brexit story continues to be digested by foreign exchange markets.

What We Learned from the Sterling Flash Crash – Profit & Loss

The BIS report paints a picture of a quite different FX market to the one advertised in the brochures.

Trump Era, Brexit May Spur Year of Greater Currency Volatility – Bloomberg

Investors could end up paying higher premiums for hedging Brexit negotiations, euro area elections among risk events.

Trump’s Silence on Yen is ‘Amazing,’ Former Japan FX Head Says – Bloomberg

Donald Trump has repeatedly made waves with emphatic tweets and striking statements, but Japan’s former currency chief is more surprised about what the president-elect isn’t talking about: the yen.

Yuan Top Forecaster Sees No End to Losses as China Economy Slows – Bloomberg

Pressure on China’s yuan to depreciate will persist as the economy slows, according to the currency’s top forecaster.

China’s Currency Manipulation Could Become a Global Problem in 2017 – Business Insider

China is manipulating the yuan but with a twist.

Turkey Tightens Funding Taps to Support Lira – Reuters

Turkey’s central bank effectively closed off two of its lira funding taps, bankers said, in an apparent attempt to force banks to borrow at a higher rate and stabilise the currency after sharp falls.

Strong Dollar Steps in to Bolster Some Economies – Wall Street Journal (subscription)

US currency’s surge aids efforts to raise growth and spark inflation, goals that have proven difficult to achieve despite years of stimulus policies.

FX Trading in 2017: Plenty of Surprises to Come – Profit & Loss

Last year the FX market was highly event driven, with periods of sustained low volatility occasionally punctuated by large but episodic market moves.

Regulatory News

Dodd-Frank Act: Is Change Coming? – Profit & Loss

Bill Shields, chief compliance officer at GFI Swaps Exchange, talks to Profit & Loss about how swaps regulations could change in 2017.

Trump’s View on China’s Yuan Doesn’t ‘Fit With Reality’ – CNBC

Former Fed chief Ben Bernanke said that President-elect Donald Trump calling China a currency manipulator doesn’t “fit with reality” and warned about the dangers of a trade war.

‘Demand, Supply Imbalance Among Reason for Ringgit’s Decline’ – Malaysia Kini

Demand and supply imbalances in the domestic foreign exchange market intensified the pressure on the ringgit’s decline, said Bank Negara governor Muhammad Ibrahim.

SEC Warns Nigerians Against Investing in Bitcoins, Other Digital Currencies – Premium Times

Nigerians have been warned against investing in digital currencies such as Bitcoin, Swisscoin and OneCoin.

Israel Tax Authority Deems Bitcoin a Taxable Asset – Crypto Coins News

The Israeli Tax Authority has issued an official draft circular to clarify the tax guidelines that apply to bitcoin adopters.

Company News

Integral’s Case Against EBS BrokerTec CTO to Continue – Profit & Loss

The US Ninth Circuit Court of Appeals has overturned some of the decisions made by the US District Court regarding claims that EBS BrokerTec CTO, Viral Tolat, misappropriated trade secrets from his former employer, Integral Development Corp.

Named: The Best and Worst Funds of 2016 – Financial Times (subscription)

A BlackRock fund that aims to reduce currency risk for clients investing with sterling was named as the worst-performing fund globally last year.

El-Erian Says Buy Emerging-Market Currencies That Fell Too Much – Bloomberg

Mohamed El-Erian, Allianz SE’s chief economic adviser, said investors willing to withstand short-term price swings would do well to bet on a rebound of currencies outside the world’s largest economies.

Market Savvy

Asia FX Slip on Caution Before Fed Speakers, Trump Inauguration – Reuters

Asian currencies fell as investors awaited comments from Federal Reserve officials this week and Republican Donald Trump’s inauguration for clues on the outlook for US policies and the dollar.

Aussie Dollar Resilient in Afternoon Trade – The Australian

The Australian dollar was unchanged at mid-afternoon from its level against its US counterpart, but is proving to be among the most resilient major currencies so far in 2017 in the face of global jitters – most recently, those around the UK’s planned exit from the European Union.

Ringgit Rout – Bangkok Post

A perfect storm is forming around the Malaysian ringgit, as its value remains at risk from a protracted economic slump aggravated by a domestic political scandal and the prospect of rising US interest rates.