Top Headlines

Traders at BofA to Credit Suisse Named in Rand-Conspiracy Probe – Bloomberg

Dozens of currency traders at some of the world’s biggest banks, from Credit Suisse Group to Bank of America, have been named in a South African probe into an alleged scheme by the dealers to manipulate the value of the rand.

China Adjusts Yuan Midpoint Mechanism – Reuters

China tweaked its formula for setting daily reference midpoints for its yuan currency, three sources with direct knowledge of the matter said, in what was seen as authorities’ latest move to help curb speculation in the currency.

Australian Dollar at Risk as China is “Ticking Time Bomb” – Pound Sterling Live

A slowdown in China, especially if it is centred on the property market, would hit the Australian dollar very heavily.

Speculators Pare Back US Dollar Longs to Four-Month Low – Reuters

Speculators reduced bullish bets on the US dollar to their lowest in four months, cutting net longs for a sixth straight week, according to Commodity Futures Trading Commission data and calculations by Reuters.

Dollar Bulls Seek Fed Guidance While Riding Wave of Confusion – Bloomberg

After a confusing week for dollar bulls, a closer look at some of the technical underpinnings of the greenback paints an even more mystifying outlook for the Trump reflation trade.

Pound Finds Forward Gear Ahead of Lords Brexit Debate – Reuters

The pound rose against most major currencies, snapping a three-day fall versus the euro, at the start of another week likely to be dominated by questions about how Britain will leave the EU and the impact of Brexit on the economy.

Risk-On Mood, Signs from French Left Prod Euro Higher – Reuters

The euro recovered some ground against the dollar after weekend talks aimed at finding a leftist unity candidate for France’s presidential election showed little sign of progress.

Merkel Says Weak Euro Isn’t Her ‘Problem’ in Stand on Trump – Bloomberg

German Chancellor Angela Merkel said the euro has a “valuation problem” that’s beyond her control and questioned President Donald Trump’s suggestion that the German luxury cars in his New York neighborhood reflect an unfair trade advantage.

Yen Retreat Supports Nikkei 225 Index, Currency Concerns Still Important – Economic Calendar

The dollar was able to make headway helped support the Nikkei index, but underlying concerns surrounding US policies and currency direction maintained a mood of caution.

This Currency Reigns Supreme in Asian Emerging-Market Plays – Bloomberg

As the most sensitive emerging Asian currency, South Korea’s won provides the best proxy for investors looking to bet on how the region reacts to US President Donald Trump.

Regulatory News

Derivative Traders Face Global Split as EU Refuses to Delay Margin Rules Deadline – MLex FS Core (subscription)

The $544 trillion global derivatives market is at risk of splintering after EU regulators rejected calls to follow the US and other countries in delaying a deadline to enforce collateral requirements for transactions by six months.

Uniform EU Stress Test Backed By CCPs and Banks – Risk (subscription)

Second Esma test will apply three scenarios to 17 clearing houses, but concerns remain.

NFA Appoints Wooding – Profit & Loss

The board of directors of the National Futures Association (NFA) has approved the appointment of Carol Wooding as vice president, general counsel and secretary at its February 16, 2017 meeting in Chicago. 

How MiFID II May Change FX – Profit & Loss

It is possibly the worst financial regulation of all time, but at least people are now talking about the benefits of “full – only you” execution for certain trades.

IFRIC 22 on Foreign Currency Transactions Up for Review – CCH Daily

The review covers the technical criteria and whether IFRIC 22 is conducive to the European public good.

Time for FX Brokerages to Start Considering New Types of Payment Processors? – Finance Feeds

The regulators may turn on the existing ones.

Company News

Dollar, Lacklustre US Profits and Brexit Hold Back Dividends – Financial Times (subscription)

Despite an improving outlook for economic growth globally in 2017, Henderson, the UK fund management company, forecast another year of flat growth in 2017 because of the strong dollar, which means that dividends paid around the world are translated into dollars at a less favourable exchange rate.

Aitchison Exits Citi – Profit & Loss

Profit & Loss understands that Daniel Aitchison is leaving his role as head of FX and local markets for Citi in Japan.

Digitec Releases Modular D3 – Profit & Loss

Technology provider Digitec has released a new version of its D3 platform, which provides pricing and risk management solutions for FX and money market trading businesses.

Market Savvy

Asian Currencies Sag, Philippine Peso Hits 10-Year Low – Reuters

The Philippine peso tumbled to its lowest level in more than a decade, with its slide picking up further momentum after it breached psychological support at 50 per US dollar.

Turkish Lira, Mongolian Bonds Lead Emerging Market Gains – Reuters

Turkey’s lira hit the strongest level in more than six weeks against the dollar and Mongolian bonds soared after a $5.5 billion IMF-led bailout for the country, outperforming broader emerging markets.

Latam Currencies Slip on Global Profit-Taking – Reuters

Latin American stocks and currencies fell as profit-taking in global equities following a recent rally triggered risk aversion.