Top Headlines

Sterling Steadies After Supreme Court Decision – Profit & Loss

The UK Supreme Court has decided, by a majority verdict, that the UK’s parliament must approve the government’s decision to trigger Article 50, which formally starts the process for Britain to exit the European Union.

US Dollar Falls to More Than Two-Month Low Amid Limited Policy Details – Wall Street Journal (subscription)

Donald Trump’s comments do little to shed light on pledges for tax cuts, infrastructure spending.

Asian Currencies to Weaken in Trump’s First 100 Days, Says HSBC – The Edge Markets

Based on historical trends, Asian currencies are likely to weaken against the US dollar in the first 100 days after US President Donald Trump’s inauguration, HSBC Global Research said.

Global Markets Turn Back on Euro as Economic Woes Reinforce Dollar as the Currency of Choice –Telegraph

Banks are using the euro less and less in international transactions, with financiers preferring to use dollars – indicating the euro’s declining importance in the global economy.

Japanese Struggle to Translate President Trump’s Intentions – Financial Times (subscription)

Some argue yen’s drift into ¥113 zone might represent a mis-step and a reason to load up on dollars

Rouble’s Rally Tests Investors’ Russian Appetite – Financial Times (subscription)

A stronger oil price and possibility of an easing in US sanctions has helped the rouble.

Code of Conduct Unlikely to Standardise Execution Policies – FX Week (subscription)

Customers face more responsibility for understanding dealing terms and more measures may be needed, sources say.

Nobel Laureute Economist: US Should Move to Digital Currency, Get Rid of Fiat – Crypto Coins News

Joseph Stiglitz, Nobel Prize-winning economist recently said that the US should phase out fiat currency and move toward digital currency, at the World Economic Forum’s Annual Meeting in Davos, Switzerland.

Angola’s Banks Grapple with Liquidity, Foreign Exchange Shortages – Reuters

Angola’s banks face a liquidity crunch due to a shortage of foreign currency, said the head of the nation’s banking association, but added that he is not aware of requests by lenders for a state-funded bailout.

Regulatory News

CFTC Extends Comment Period for Reg AT Rules – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has extended the comment period for the supplemental proposal for Regulation Automated Trading (Reg AT) to May 1, 2017.

Inside the Mind of Mnuchin: Too-Strong Dollar May Hurt Economy – Bloomberg

US Treasury Secretary nominee Steven Mnuchin said an “excessively strong dollar” could have a negative short-term effect on the economy.

Bundesbank Finds Euro Weakens on QE Signaling But Not Purchases – Bloomberg

The European Central Bank’s bond-buying program weakened the euro, but only when the measures were signaled or announced, according to the Bundesbank.

EU Courting of London Banks May Derail Five-Year Tobin Tax Push – Bloomberg

German and French efforts to lure UK-based banks unsettled by Brexit may stumble over an obstacle of their own making – a planned tax on financial transactions.

Reporting for Duty: The Growing Reporting Burden of MiFID II – Waters Technology (subscription)

MiFID II expands the scope of trade and transaction reporting requirements, leaving some firms struggling to comply.

SEC Expected to Come Out of Gate Slowly – Pensions & Investments (subscription)

The sizable learning curve of the likely next chairman of the Securities and Exchange Commission plus vacancies on the commission and in several key agency divisions should add up to an extended quiet period, veteran SEC watchers say.

The Long Arm of the (European) Law: MiFID II’s Impact on Asia-Pacific – Waters Technology (subscription)

Depending on their activities, MiFID II’s regulatory requirements could still impact firms in Asia.

Why the Bank of Canada is So Cloak-and-Dagger About the Loonie’s Strength – Canadian Business

The loonie has shown surprising strength, which is complicating Stephen Poloz’s job.

Egypt Considers Signing Currency Swap Deal with Russia – Sputnik News

The Egyptian government considers signing a currency swap agreement with Russia that will help relieve pressure on economy, local media reported, citing a senior official at Egypt’s Finance Ministry.

Company News

CLS Signs MOU with Chinese Think Tank – Profit & Loss

CLS Group has signed a memorandum of understanding (MOU) with the National Institution for Financial Development (NIFD) in China.

Hedge Funds Outperform Stocks, Bonds: Survey – Profit & Loss

Hedge funds outperformed equities and bonds on a risk-adjusted basis in 2016, according to the Alternative Investment Management Association (AIMA) and data provider Preqin.

Saxo Integrates AutoChartist to Trading Platform – Profit & Loss

Saxo Bank has announced a new collaboration with Autochartist to offer its clients access to Autochartist’s automated technical analysis and live trade signals via the SaxoTraderGo platform.

Nasdaq Successfully Completes Blockchain Test in Estonia – Reuters

Nasdaq has successfully completed a test using blockchain technology to run proxy voting on its Estonian exchange and is now assessing whether to implement the new system, the company said.

Bitcoin Options Firm LedgerX Crosses Key Launch Hurdle – Coin Desk

The wait is almost over for LedgerX, a New York-based bitcoin swaps startup with a board boasting a who’s who of financial sector bigwigs.

Market Savvy

Dollar Near Seven Week Low Supports Emerging Assets; Turkey Central Bank Awaited – Reuters

The Turkish lira was flat to the dollar before a key central bank meeting at which it is expected to raise interest rates by at least 50 basis points, while broader emerging assets firmed, with equities at 2½ month highs.

LatAm Currencies Strengthen as Trump Uncertainty Lingers – Reuters

Latin American currencies strengthened as traders sought further clarity on US President Donald Trump’s protectionist pledges.

C$ Gains as NAFTA Fears Abate; Oil Slips – Reuters

The Canadian dollar strengthened against a broadly weaker US dollar, as an advisor to US President Donald Trump said Canada has a “very special status” and is unlikely to be hard hit by any changes to the NAFTA trade accord.