Top Headlines

Sterling Climbs Towards $1.32 After UK Data Beat Predictions – Financial Times (subscription)

The UK pound added to its gains after a round of data on Britain’s industrial and construction sectors exceeded economists’ forecasts.

Dollar Edges Lower as Euro, Sterling Firm in Asia Trading – Financial Times (subscription)

The dollar edged lower as the euro, sterling and major currencies across Asia Pacific mostly firmed.

Euro Bounces to One-Week Highs on Hawkish Comments – Reuters

The euro hopped to a one-week high as investors added positions on hawkish overnight comments by a policymaker that reaffirmed bets the euro zone economy’s outlook remains robust.

ISDA Weighs in on Brexit Impact – Profit & Loss

Brexit is unlikely to have any impact on the contractual certainty of derivatives trades, but could affect some trade lifecycle actions, according to International Derivatives and Securities Associations (ISDA) CEO, Scott O’Malia.

Brexit Poses Threat to London’s Role as Global Markets Hub – Financial Times (subscription)

More than a year on from the Brexit vote, the future of the City of London as one of the world’s biggest financial trading hubs is no clearer.

Hedge Funds Stick to Their Misfiring FX Guns: McGeever – Reuters

Struggling to make money amid ultra-low market volatility, misfiring hedge funds are sticking to their guns with their currency and bond bets on a weaker dollar, stronger UK pound and rising US interest rates.

Old Grudges Blow Up in the Turkey-US Feud – Bloomberg

With its arrest warrants and visa freezes, the Turkey-US standoff looks more like a flashpoint between enemies than a difference of views among friends.

Prime-of-Prime: A Risky Business? – Profit & Loss

In a recent survey conducted by Profit & Loss 57.25% of respondents said that they think the trend towards more firms using prime-of-primes (PoPs) rather than traditional FX prime brokers (FXPBs) could increase the impact of a shock event.

Regulatory News

CFTC Swaps Dealer Threshold Criticized by Its Newest Republican – Bloomberg

The US Commodity Futures Trading Commission’s newest Republican is jumping right into a contentious debate over a registration requirement for swaps dealers.

London-Based Banks Face ECB Brexit Power Grab – Risk (subscription)

Market participants fear the European Central Bank’s single supervisory mechanism (SSM) is using Brexit as an opportunity to consolidate the supervision of swaps trading in the European Union, potentially fragmenting balance sheet management.

Australian Regulators Welcome New Benchmark Methodology – Profit & Loss

The Australian Securities and Investment Commission (ASIC) and Reserve Bank of Australia (RBA) have jointly welcomed the publication of new guidelines for the setting of the local interest rate benchmark, the Bank Bill Swap Rate (BBSW).

Clock Ticks Down on EU’s Mifid Reform – Financial Times (subscription)

Even experts are unsure how new European rules governing financial services will work.

Here Are the Contenders for the Most Powerful Finance Job in Europe – CNBC

The new finance minister will dictate the economic direction of Europe’s largest economy and have a large influence over the euro zone.

Company News

INTL FCStone Subsidiary Offers Real-Time Indicative FX Rates – Profit & Loss

INTL FCStone’s Global Payments Division, a London-based subsidiary, will now offer indicative foreign exchange rates, viewable in real-time for more than 140 currencies through its proprietary global payments network.

Banks Discount Legacy Swaps Ahead of Ring-Fencing Deadline – Risk (subscription)

With the UK’s ring-fencing rules drawing closer, in-scope banks are ramping up their efforts to unwind or novate derivatives trades that could increase their costs in the future, opening up a window of opportunity for market participants to take advantage of attractive discounts on trades.

Bourses Become More Than Stock Exchanges – Financial Times (subscription)

Diversification into clearing and other trading tools has helped widen income streams.

We’re Definitely Not Playing Catch-Up: CACIB’s Shuster – FX Week (subscription)

Credit Agricole’s global head of foreign exchange says investment is paying off and it plans to roll out algos in 2018.

Market Savvy

Upbeat Yuan Supports Asia FX, Korean Won Robust After Holiday Break – Reuters

Most Asian currencies turned firmer with the Korean won coming back well-refreshed from a week’s holiday and China’s resurgent yuan bolstering its regional peers.

Renminbi Firmer as PBoC Governor Calls for Renewed Reforms – Financial Times (subscription)

The renminbi strengthened past the Rmb6.6 per dollar mark as China’s outgoing central bank governor called for a renewed drive to open the country’s capital account.

South Africa’s Rand Recovers After Hitting Six-Month Low – Reuters

South Africa’s rand firmed against the dollar, recovering from a six-month low hit in the previous session as emerging market currencies suffered a broad sell-off.