Top Headlines
SEFCON VII Headlines CFTC, Congressional Speakers – Profit & Loss
As the US prepares for the inauguration of Donald Trump as President on Friday, tomorrow at SEFCON VII industry leaders will take a look at the incoming Trump Administration: Join your swaps industry peers at SEFCON VII to hear directly from many of 2017’s newsmakers, representing a unique roster of speakers from across the regulatory, legislative, banking and buy side sectors.
Theresa May to Lay Out Clean Break from EU – Financial Times (subscription)
Theresa May will test the nerves of currency markets when she declares that Britain is making a clean break from the EU and will not seek a deal that leaves the country “half in and half out”.
UK Said to Seek to Calm Investors After May’s Brexit Speech – Bloomberg
The UK government is drawing up plans to try to reassure investors amid expectations that Prime Minister Theresa May’s long-awaited blueprint for Brexit will cause more market turmoil, according to two people familiar with the situation.
Sterling Jumps as UK Inflation Rises to Highest Since ’14 – Financial Times (subscription)
The UK pound rallied against the dollar after latest figures showed Britain’s inflation rate climbed more than expected last month.
Dollar Hits Six-Week Low as Trump Backlash Builds – Reuters
A New Year sell-off of the US dollar deepened as investors turned more gloomy on the immediate outlook, spurred by President-elect Donald Trump’s comments that the strength of the US currency against China’s yuan “is killing us”.
China’s Yuan Firms, Academics Urge Beijing to Loosen Grip – Reuters
China’s yuan firmed slightly against the dollar, buoyed by its firmer offshore counterpart and as corporates eased off heavy dollar purchases this week.
Turkish PM Says Central Bank Will Not Hesitate to Do What is Necessary – Reuters
The Turkish central bank will not hesitate to take whatever steps are necessary after the lira’s sharp falls, Prime Minister Binali Yildirim told reporters after a meeting of top economy officials and President Tayyip Erdogan on Monday night.
Brazil Central Bank Resumes Rollover of Foreign-Exchange Swaps – Bloomberg
Brazil’s central bank is to resume its offerings of swap contracts intended to support the currency, citing current market conditions.
ECB and UK Urged to Share Regulation of Euro Clearing Market – Financial Times (subscription)
Lobby group says joint coverage of the market would prevent any damaging splits.
High-Speed Traders Are Taking Over Bitcoin – Bloomberg
The reality is that professionals armed with cutting-edge technology now drive as much as 80 percent of bitcoin trading, mimicking strategies honed by some of the biggest players on Wall Street.
UAE ‘Virtual Currency’ Restrictions Cast Uncertain Shadow on Bitcoin – Coin Desk
While the world waits to see how the People’s Bank of China moves to regulate bitcoin and digital currencies, another central bank is quietly putting its own rules in place.
Regulatory News
The currency’s moves – which follow in a week where the pound has slumped to a three-month low – reflect investors concerns that a UK interest rate hike may be on the cards should consumer prices continue to surge.
European Banks Downsizing Role in Client Clearing – The Trade
A handful of major European banks are significantly reducing their exposures to client clearing of derivatives, as regulatory pressures force banks to rethink the business.
South Korea Hopes Currency Swap with China to Be Extended – Reuters
South Korea said it hopes to extend a bilateral currency swap deal with China before it expires in October, even with the political uncertainty in the background over Seoul’s decision to deploy a US anti-missile system.
Korea to Not Ask Japan to Resume Negotiations for Currency Swap Deal – Korea Herald
South Korea has no plan to ask Japan to resume negotiations for a currency swap which Tokyo suspended for diplomatic reasons, a senior finance ministry official said.
Egypt Fixes Customs Dollar Exchange Rate to Help Importers – Reuters
Egypt will fix its customs dollar exchange rate and adjust it on a monthly basis to help importers better cope with pricing of their products after the central bank floated its currency in November.
Company News
JP Morgan to Offer Independent TCA Through BestX – Profit & Loss
Profit & Loss understands that BestX, the start-up technology company that provides independent trading analytics, has signed JP Morgan as its first major FX sell-side client.
LSE Dismisses Report on Moving Clearing to Germany – Financial Times (subscription)
UK exchange operator hits out at study commissioned by merger partner Deutsche Börse.
Gillie Joins SocGen – Profit & Loss
Tom Gillie has joined Société Générale in London.
FastMatch Taps Beacroft to Boost Asia Sales – Profit & Loss
FastMatch is hiring Trent Beacroft as managing director of sales in Singapore, effective February 1.
Market Savvy
Asia FX Rise, Focus Turns to UK PM’s Brexit Speech – Reuters
Most Asian currencies rose in a move that traders said was likely driven by position squaring ahead of a series of potentially market-moving events over the next several days.
Russian Rouble Gains on Weaker Dollar, Tax Payments – Reuters
The Russian rouble was stronger, helped by a weaker dollar and end-of-month tax payments.
Aussie Dollar Heading for the Rough – Financial Times (subscription)
There is a real risk that the currency will be caught up in a US-China trade war.