Top Headlines

Sterling Inches Lower Before Budget Statement – Reuters

Sterling dipped by a quarter of a percent against the dollar and was marginally weaker against the euro ahead of a government budget statement expected to deliver only marginal additional support for an economy facing more Brexit-based volatility next year.

Flighty Pound Rises Above Brexit Cloud – Financial Times (subscription)

A second straight day of sudden moves in the pound underlined why investors and traders are wary about betting on a clear trend for the currency until there is further clarity over the shape Brexit will take.

Sterling Slips in Volatile Price Action – Reuters

Sterling fell back to around $1.24 with illiquid trading conditions helping the pound reverse around half of a one percent rise the previous day on the view that Brexit will be slower – and softer – than had been feared.

Sterling Bull Back in Game as Political Risks Rise Elsewhere – Bloomberg

Strategists have rushed to slash their pound forecasts since the UK voted to leave the European Union, but one fund manager is bucking the anti-sterling trend.

Trumped-Up Dollar Steadies Ahead of Thanksgiving – Reuters

The dollar steadied near a recent 13½-year peak, taking a breather ahead of the US Thanksgiving holiday after surging on expectations that a Donald Trump administration will boost growth and push up US interest rates.

Wall Street Hits Record Highs, Dollar Gains vs. Yen – Reuters

US and European shares rose with Wall Street’s three main stock indexes hitting record highs for a second straight day, on expectations that markets would benefit from US President-elect Donald Trump’s policies.

Why It’s ‘Now or Never’ for Euro-Dollar Parity – Bloomberg

With the victory of President-elect Donald Trump rejuvenating the so-called divergence trade, calls for the euro to sink to parity versus the US dollar are swelling.

Rand Climbs After Government Cuts Spending Plans – Financial Times (subscription)

The rand is rallying for the second day in a row after South Africa’s energy ministry unexpectedly deferred spending plans ahead of a series of key credit ratings decisions in the coming weeks.

Demand for US Dollars Causes Chinese Black Market FX Trades to Surge in Popularity – Live Bitcoin News

China’s foreign exchange black market is booming.

Regulatory News

Too-Big-to-Fail Banking Finds Regulatory Loophole in Scandinavia – Bloomberg

The financial watchdogs of Finland and Denmark want the European Union to step in and address a gap in regulations that the two countries say has the potential to destabilize their markets as they lose control of the region’s biggest bank.

Lira’s Record Plunge Puts Pressure on Turkish Central Bank – Financial Times (subscription)

With the Turkish currency at its lowest on record against the dollar, monetary policy may have to make an abrupt turn towards tightening this month in a bid to protect the lira, according to analysts.

Czech Central Bank Chief Says ECB Actions May Not Affect FX Cap – Reuters

Extending the European Central Bank’s bond-buying programme may not affect the Czech central bank’s decision on when to remove its cap on the value of the crown, if inflation is headed back to or slightly above target, Czech Governor Jiri Rusnok said.

Company News

Morgan Stanley Joins Goldman Sachs in R3 departure – The Trade

Morgan Stanley has reportedly followed Goldman Sachs and Santander in leaving the R3 blockchain venture.

Sterling’s Fall is Over, Says Bullish UBS as It Backs UK Investments – The Telegraph

Sterling could be back on the up, according to wealth managers at UBS who believe the pound is unlikely to fall any further, and could even bounce all the way back to $1.55 in the years ahead.

Euro Could Hit Parity with Dollar Ahead of French Elections – Financial Times (subscription)

The euro is likely to hit one for one against the dollar ahead of France’s presidential elections next spring, according to investment bank Société Générale, which expects the single currency to weaken on the back of heightened political threats and more central bank stimulus measures in the eurozone.

Market Savvy

US Rate Hike Views Enfeeble Asia FX; Ringgit Nears 14-Month Low – Reuters

Most emerging Asian currencies eased as the dollar hovered around a 13½-year peak and as expectations grew that the Federal Reserve may raise interest rates further next year after an expected hike in December.

Increased Risk Appetite Boosts NZD, GBP Weighed by Brexit Outlook – Exchange Rates

Demand on the foreign exchange markets for the British pound rates has remained volatile ahead of the Autumn Statement, while the New Zealand Dollar has struggled to capitalise on solid card spending figures.

C$ Seen Vulnerable Post-OPEC as Bond Spreads Widen – Reuters

The Canadian dollar weakened against its US counterpart, with one strategist warning a preoccupation with oil ahead of a key OPEC meeting was obscuring loonie vulnerability to wider yield spreads between the two countries’ bonds.