Top Headlines

Sterling Nurses Losses Near One-Week Lows on Brexit Concerns – Reuters

Sterling held near a one-week low as a weekend bout of negative news around Brexit negotiations weighed on the British currency although a central bank meeting later this week kept investors wary of adding bearish positions.

Robust Pound Faces Big Test from BoE – Financial Times (subscription)

Sterling has rallied 4.5 per cent this year against the US dollar.

Dollar Pauses After US Jobs Report Gives It a Boost – Reuters

The US dollar paused after rebounding at the end of last week, when a strong jobs report suggested the currency’s weakness might have gone too far, too fast.

Bitcoin Drops Below $8,000 for the Second Time in Three Days – Business Insider

After a reasonably stable weekend of trading bitcoin’s slump resumed, falling to a low of $7,668 per coin overnight.

Bitcoin’s Crashing? That Won’t Stop Arbitrage Traders from Raking in Millions – Wall Street Journal (subscription)

One of the oldest tactics on Wall Street is going viral in the world of digital currencies.

Hedge Funds Bet Bitcoin’s Pain Isn’t Over on Cboe Futures Market – Bloomberg

Leveraged funds, which include hedge funds, held 2,974 short positions in Cboe Global Markets’ bitcoin futures, a fivefold jump from the prior week.

Trading Venues Buzzing on Strong Start to Year – Financial Times (subscription)

The busiest January on global markets in many years is raising hopes among exchanges and market venues that 2018 will spark a long-awaited rebound in trading revenues.

No Plan B If City’s Post-Brexit Strategy Doesn’t Fly – Politico

London’s financial sector will lobby hard across the Continent for its preferred option of EU market access via a free-trade deal.

Mifid Monster Manages to Confuse and Mislead Investors – Financial Times (subscription)

Legislation reflects EU’s suspicion and misunderstanding about free markets.

Digging a Little Deeper – Profit & Loss (subscription)

For those of you who missed it, there were some noteworthy nuggets of data contained within JP Morgan’s recent e-trends survey.

Regulatory News

EU Spots Weaknesses at Major Clearing Houses ICE and BME – Financial News

Europe’s financial regulator has identified potential weaknesses at two of the region’s big clearing houses, drawing fresh attention to companies now widely considered to be systemically important to the safety of global markets.

Derivatives Trade Group ISDA May Challenge New Capital Rules – Reuters

An industry group representing the privately traded derivatives markets may challenge new rules requiring that more capital be used to back the trades, arguing that the requirements place them at a disadvantage to trading futures contracts.

Yellen Admits Disappointment Over Her Exit in Rare Interview – Bloomberg

Federal Reserve Chair Janet Yellen professed her disappointment over not being tapped for a second term by President Donald Trump, as she also predicted the central bank would keep on its path of gradual interest-rate increases.

The Bitcoin Crash Is a Blessing in Disguise for the US Financial System – Business Insider

US financial regulators may have just caught a major break when it comes to overseeing the roughshod cryptocurrency market.

Company News

Nex, CME Report January Trading Boost – Profit & Loss

The average daily volume (ADV) for spot FX trading on Nex Markets was $104.9 billion in January, while CME Group handled around $109 billion including FX options.

SGX Sees Record Volume in USD/CNH Futures – Profit & Loss

Singapore Exchange (SGX) set a new volume and open interest records for its USD/CNH futures contract in January.

May Announces Launch of R5-SHCH Connect – Profit & Loss

Theresa May announced the launch of R5-SHCH Connect, a new service which links banks in China with London’s FX market.

UBS Warns Employees on Possible Tighter Crypto Trading Rules – Bloomberg

UBS Group may require staff to seek approval before trading cryptocurrencies in their personal accounts, bringing its policy on whipsawing virtual money into line with its rules on dealing other securities.

Market Savvy

As Treasury Yields Surge, Funds Stick to Asian Currency Bets – Bloomberg

Asian currencies are getting support from an unexpected development – the weakening relationship between the two-year Treasury yield and the dollar.

C$ Suffers Biggest Drop in One Year as Stocks Slump – Reuters

The Canadian dollar suffered it sharpest drop in one year against its US counterpart after a pickup in US wage growth boosted the greenback, while multi-year highs for bond yields pressured global stock markets.