Top Headlines

Second Barclays Trader Loses Unfair Dismissal Case – Profit & Loss

Mark Clark has become the second former Barclays FX trader to lose a claim for unfair dismissal in a UK employment tribunal.

Why the FX Industry Must Bite the Bullet Now – Profit & Loss

Even following the most recent spate of conduct-related issues, a re-birth of the FX industry is not as hard as it sounds.

Pound Slides to Lowest Level Since October on May’s Brexit Comment – Financial Times (subscription)

Prime minister dismisses idea that UK could keep ‘bits of’ EU membership.

Dollar Firms on Softer Yen, Lacks Energy Elsewhere – Reuters

The dollar crept ahead in Asia after signs of wage pressure in the December US jobs report proved enough to lift Treasury yields, but bulls remained wary of a sudden setback following last week’s wave of profit-taking.

‘Huuuge’ Dollar Rally Predicted by Citigroup If Trump’s Plan Triumphs – Bloomberg

Financial markets may be witness to a massive rally led by the dollar if Donald Trump pulls off the biggest fiscal stimulus push since the 1980s.

China Forex, Rates Stabilize After Volatile Week; Strains Linger – Reuters

The Chinese yuan stabilized in offshore markets and its borrowing costs retreated from record highs, though investors anticipated Beijing would take further steps to stop its currency from depreciating too quickly.

Bitcoin Extends Loss After China’s Central Bank Warns Investors – Bloomberg

Bitcoin extended Friday’s tumble amid concern China will tighten rules on the digital currency to curb capital outflows.

Thomson Reuters Bucks Trend with Double Decline – Profit & Loss

Thomson Reuters says its FX platforms handled $82 billion per day of spot volume in December.

LCH Handles Record Volumes in 2016 – Profit & Loss

LCH is seeing the benefit of the push towards central clearing of derivatives, the clearinghouse announcing its SwapClear service cleared record volumes of interest rate derivatives in 2016.

Speculators Again Raise Net Short Contracts on Mexican Peso – Reuters

Currency speculators raised the number of net short bets on the Mexican peso, again increasing the number of contract bets that the peso will fall after a small decrease.

Former HSBC Associate Director Predicts More Doom for Asian FX Jobs – e-Financial Careers

Asian FX jobs are still in the firing line, even as Singapore and Hong Kong grab a greater share of global FX turnover.

Regulatory News

Rep Huizenga Named Capital Markets Chair, Speaking at SEFCON in NYC Jan 18 – Profit & Loss

House Financial Services Committee Chairman Jeb Hensarling (R-TX) announced the committee’s leadership team for the 115th Congress and has appointed Congressman Bill Huizenga (R-MI) as chair of the Capital Markets, Securities and Investment Subcommittee.

BoE Told to Firm Up Oversight of Clearing and Other Support – Financial Times (subscription)

The Bank of England has been warned by its internal watchdog that it needs to strengthen its supervision of the vital plumbing behind the financial system such as clearing houses, payment services and exchanges.

As Trump Eyes Dodd-Frank, Chicago’s Trading Interests Gear Up for a Battle – Chicago Business

For all the Trump team talk about gutting President Barack Obama’s landmark financial law, Chicago’s trading community is wagering that at least part of it will stick: swaps reform.

Fed Governor Jerome Powell Calls for Volcker Rule Review – Wall Street Journal (subscription)

Central banker says the rule can create tremendous expense and burden with only marginal benefit.

Biggest Banks Each Set to Be Hit with $200m Trading Rule Costs – Financial Times (subscription)

New Basel regulations due to take effect in 2019 will create need for 2,000 staff.

Russia Restores Japanese Yen to FX Reserves, Cuts Back on Euro – Reuters

Russia’s central bank reinstated the Japanese yen in its international reserves in the second quarter of 2016, while cutting back on the share of euros, the bank said.

China Reserves Hover Above $3 Trillion on Government Support – Bloomberg

China’s foreign currency holdings remained above $3 trillion in December even as the yuan capped its steepest annual decline in more than two decades.

French AMF Bans FX and Binary Advertisement, Retains CFDs with Conditions – Finance Magnates

The French financial regulator, Autorité des marchés financiers (AMF) is mandating some changes to retail brokers operating in the country.

Company News

TP ICAP Sees Trump Trading Surge – The Trade

TP ICAP expected to report a 12% growth in revenues in 2016 compared to the year prior.

Icap Founder Michael Spencer’s Biggest Bet Yet – Financial News (subscription)

Building out Nex Group could be his biggest challenge yet.

FXecosystem Opens in HK1 – Profit & Loss

Connectivity provider FXecosystem has announced further expansion in Asia, with a point of presence (POP) in the Equinix Hong Kong data centre, HK1.

Lack of Blockchain Talent Hindering Implementation for 40% of Firms – The Trade

Survey finds just 6% of firms plan to support training to deal with lack of blockchain talent.

Market Savvy

Lira Suffers Worst Daily Hit Since July After Moody’s Warning – Financial Times (subscription)

There is no end in sight for the Turkish lira’s woes, with the currency slumping to another fresh record low against the dollar in an already rough start of the year.

Asia FX Slips After Solid US Jobs Bolster Fed Rate Hike Bets – Reuters

Emerging Asian currencies fell after data showing a rebound in US wage growth buttressed expectations for more Federal Reserve interest rate hikes in 2017.

Rupee Weakens Against US Dollar on Asian Cues, Lower GDP Estimates – Live Mint

The Indian rupee weakened against the US dollar, tracking the losses in the Asian currencies markets and also on the pessimism on domestic markets following lower economic growth projections last Friday.

Five-Day Forecast for GBP/NZD Exchange Rate: Potential for Strength Despite Poor Start to New Week – Pound Sterling Live

The current GBP/NZD price chart is showing a compelling bias to further upside despite a poor start to the new week.