Top Headlines

Swiss Franc Shock of 2015 Came as No Surprise for Some, BIS Paper Finds – Wall Street Journal (subscription)

Doubts in financial markets had already crept in about the Swiss National Bank’s commitment to the franc ceiling even before the SNB unexpectedly jettisoned the policy in January 2015, according to a paper published by the Bank for International Settlements.

Dollar Tumbles to Lowest Since September After Yellen’s Comments – Bloomberg

The dollar fell against all its Group-of-10 peers after comments from Federal Reserve Chair Janet Yellen on inflation spurred investors to lower their expectations on the pace of US rate increases.

Sterling Strengthens on Bets for BoE Tightening – Reuters

Sterling crept back towards $1.30 against a weaker dollar, building on the previous day’s gains after marginally better than expected labour market data kept bets for a tightening of Bank of England policy on the table.

Nomura Warns Against Betting Too Hard on Further Euro Strength – Financial Times (subscription)

The euro may be “reigning supreme” at the moment, but not everyone is convinced the rally can continue.

Dollar Dips After Yellen, Loonie Near 13-Month High on BOC Rate Hike – Reuters

The dollar dipped against its peers after Federal Reserve Chair Janet Yellen did not sound as hawkish as many had anticipated, while the Canadian dollar stood near a 13-month high after its country’s central bank hiked interest rates for the first time since 2010.

Aussie, Kiwi Jet Higher, US Dollar Steadies – Reuters

The Australian and New Zealand dollars were the biggest beneficiaries of a second day of gains for stock markets, comments by US Federal Reserve chair Janet Yellen bolstering a global rally that dates back seven years.

Cheapest Currency in Southeast Asia Gives Malaysia an Edge in Export Race – Bloomberg

When the global trade rebound came this year, Malaysia held one advantage over its peers: the cheapest currency in Southeast Asia.

Trading with the Cranes – Profit & Loss (subscription)

And other memorable events from 40 years in the FX industry.

Regulatory News

Revolving Door Spins Ex-Carlyle Deal-Maker Into Key Fed Role – Bloomberg

Now, the lawyer who once sought to topple regulatory obstacles is set to become Wall Street’s chief watchdog, President Donald Trump’s pick as the Federal Reserve’s vice chairman for supervision.

Trump’s Pick to Head US Bank Regulator Withdraws – Reuters

James Clinger, picked by President Donald Trump in June to head the Federal Deposit Insurance Corporation, announced on Wednesday he was withdrawing his name from consideration.

White House to Nominate Russ Behnam as CFTC Commissioner – Wall Street Journal (subscription)

The White House is expected to nominate Russ Behnam, a Senate Democratic aide, to be a commissioner on the Commodity Futures Trading Commission as early as this week, according to people familiar with the matter.

Yellen Open to Change in Some Bank Rules, But Not All – Wall Street Journal (subscription)

Expectations for bank boards are being re-evaluated, Fed chief tells House hearing.

Bitcoin Just Got a Vote of Confidence from Switzerland’s Legendary Banking System – CNBC

Switzerland’s financial markets regulator has approved the first Swiss private bank for bitcoin asset management, potentially paving the way for other global banks to offer digital currency products.

Company News

Cobalt Partners with BestX – Profit & Loss

Execution analytics provider BestX is partnering with Cobalt, the FX post-trade processing network based on distributed ledger technology.

Noble Hires Former CME Counsel – Profit & Loss

Noble Bank International (Noble) has hired Jason Silverstein as its general counsel.

P&L Talk Series with Colt – Profit & Loss (subscription)

Terence Chabe, business development manager, Colt PrizmNet, and John Sullivan, head of Capital Markets USA, at Colt Technology Services talk to Profit & Loss about the challenges posed by Mifid II compliance.

One of the Biggest Global Currency Exchanges is More Excited About Ethereum Than Bitcoin – Quartz

NEX is actively discussing building transaction platforms for cryptocurrencies, although Spencer said in a conference call that he and his executives haven’t made a final decision on the matter.

Indian Public Sector Firms Adopt FXGO – Profit & Loss

Bloomberg is reporting growing penetration of the Indian market, with corporations such as Gas Authority of India (GAIL), Rural Electrification Corporation (REC) and ONGC Videsh (OVL) adopting its e-FX platform, FXGO.

Market Savvy

Asian FX Rise as Yellen’s Unhurried Tightening Stance Dents Dollar – Reuters

Asian currencies were higher as the dollar took a knock after Federal Reserve Chair Janet Yellen signalled further rate increases in the United States will be gradual at best.

Krona Strengthens as Swedish Inflation Beats Forecasts Again – Financial Times (subscription)

The Swedish krona jumped to its strongest level in more than two months after new inflation figures beat forecasts for a second straight month, lending further support to the central bank’s recent moves to edge away from monetary stimulus.

Brazilian Assets Rally on Lula Conviction, BRL Erases Losses for the Year – Financial Times (subscription)

The advance was enough to push the real back into positive territory for the year.