The yuan experienced its strongest monthly rally for almost forty years in January, and analysts are expecting further gains to come, even as its strength begins to hurt local businesses.
The dollar briefly clawed back some of its recent falls after the Federal Reserve said inflation was likely to rise this year, but with expected monetary tightening priced in, traders are waiting to see if upcoming data will give the greenback more than a brief respite.
The European Central Bank may be forced to fight back if US leaders continue to prod currency markets to dent the strength of the dollar, one of the central bank’s most senior policymakers has warned.
- America Winning ‘Cold Currency War’ to Weaken Dollar, Pimco Says – Bloomberg
- Don’t Be Fooled by These Three Dollar Myths – Bloomberg
Sterling strengthened, recovering from losses earlier in the week, as concerns over Prime Minister Theresa May’s leadership eased and expectations grew that the Bank of England to take a more hawkish tone in its meeting next week.
US futures exchanges are pushing back against a proposal that would require them to disclose whether clearing members were consulted before listing new products.
- Rise of Bitcoin Futures Prompts Regulator to Revisit Hands-Off Approach – Wall Street Journal (subscription)
- Goldman Sachs Felt Rushed by Quick Rollout of Bitcoin Futures – Bloomberg
Banks across the EU are to be tested to make sure they can withstand potential doomsday Brexit consequences, including a severe recession that would leave the bloc’s economy 8.3 per cent smaller than it otherwise would have been.
Morgan Stanley President Colm Kelleher said the bank would boost its offices in three European Union cities as it seeks to relocate London-based roles after Brexit.
The first three platforms to report FX trading volumes indicate January was a strong start to the year all round, with Cboe’s HotspotFX and Gain’s GTX platforms both recording new record highs for average daily volume (ADV).
The impact of transaction cost analysis (TCA) on the FX buy side remains hard to quantify, despite the relative maturity of the technology.
I don’t see why FX market participants shouldn’t pay a small amount more brokerage given the level of investment by several platform providers over the last year or two.
Federal Reserve Chairwoman Janet Yellen concluded her final policy meeting by holding interest rates steady and leaving it to her successor to decide whether to lift them more quickly to prevent the economy from overheating.
The UK’s voice of the City in the European parliament, Conservative politician Kay Swinburne, has said that legislators are already planning to overhaul a massive new piece of regulation which came into force earlier this month.
Some banks outside of the European Union are looking into updating their derivatives contracts to meet standards similar to those set out in the bloc’s new benchmark regime, after a prod from the International Organization of Securities Commissions (Iosco).
Jay Clayton says more cases coming if conduct doesn’t change.
- Regulators Should Keep Their Hands Off Bitcoin and Blockchain – MarketWatch
- South Korea Says No Plans to Ban Cryptocurrency Exchanges, Uncovers $600 Million Illegal Trades – Reuters
- Indian Finance Minister Vows Cryptocurrency Crackdown – Financial Times (subscription)
New York isn’t going to let Bank of Tokyo-Mitsubishi slip out of its regulatory oversight without fighting back.
FCA wins identity legal battle with former colleague of trader Bruno Iksil.
Multiple industry sources tell Profit & Loss that Lucid Markets has sent out a communication to all clients stating it is closing its business effective immediately.
MarketFactory has added Moscow Exchange (Moex) to its API connectivity solution.
Trade Informatics (TI), a provider of quantitative analytics and systematic trading solutions to institutional asset managers has announced it will provide BMO Capital Markets (BMO) with transaction cost analysis (TCA) tools to help execute algorithmic trades with improved execution quality.
Bank of New York Mellon is moving its global headquarters for the second time in less than four years.
Japanese Coincheck made false explanations to customers about its security system before suffering one of the world’s biggest cyber heists, the head of a major cryptocurrency industry group said.
Global regulatory clampdown hits cryptocurrencies.
- Worries Grow That the Price of Bitcoin Is Being Propped Up – The New York Times
- Why Crypto Traders Are So Worried About Tether – Bloomberg
For investors, the question of central bank credibility and the consequences for the currency is a red-hot issue.