Top Headlines

Transatlantic Cables May Keep FX Routed Through London Post-Brexit – Reuters

High-speed sub-Atlantic cables may force banks to keep their armoury of currency trading hardware in London for some time, even if the dealers themselves go elsewhere when Britain leaves the European Union.

Platform Volumes Rise in November – Profit & Loss

The first group of FX platforms to report volume data indicate a good November for the industry with the US elections driving sufficient volume to more compensate for the traditionally quiet period around the US Thanksgiving holiday.

Yen Edges Out Mexican Peso as November’s Worst-Performing Currency – Financial Times (subscription)

The Japanese yen surpassed the Mexican peso as the biggest loser against the US dollar in November, highlighting the shift in investor sentiment in the weeks after Donald Trump won the US presidential election.

OPEC Effect Helps Sterling to Best Month vs Euro Since 2009 – Reuters

Sterling surged back to an 11-week high against the euro in late trade in London, racking up its best month since January 2009 as a deal to cut OPEC oil output weakened the single currency against the dollar.

MS Forecast: Euro to Pound Exchange Rate to Fall to 0.77 in 2017 – Exchange Rates

Foreign exchange analysts at Morgan Stanley expect the euro to pound rate to fall in 2017.

Dollar Surges to Nine-Month High Against Yen on OPEC Deal – Reuters

The US dollar hit its highest level against the yen in nine months and also surged against the euro and Swiss franc after a rally in oil prices pushed US Treasury yields higher, while strong private payrolls data bolstered expectations for a hawkish Federal Reserve next year.

China Capital Flight Crackdown Shifts to International Renminbi – Financial Times (subscription)

China’s central bank will restrict cross-border renminbi transfers, according to a document obtained by the Financial Times, in a move that will help stem capital outflows but hinder Beijing’s efforts to internationalise its currency.

StanChart Cuts Hit FX – Profit & Loss

The recent cuts announced at Standard Chartered are beginning to hit its FX department, with at least three senior staff thought to be leaving the bank.

A Game-Changing Month for Markets: The Numbers – Financial Times (subscription)

Trump’s promise of tax cuts and fiscal spending rocks bonds, stocks and currencies.

Asian Currencies Likely to Depreciate for Fifth Consecutive Year in 2017 on Rising Global Headwinds, Says ANZ – Econo Times

Asian currencies are expected to depreciate for the fifth straight year, going into 2017, following mounting global headwinds; also sharp appreciation in the greenback will pose serious threats to major Asian currencies.

S&P Sees High Interest Rates, Volatile Forex as Risks to Growth – The Philippine Star

S&P Global Ratings said higher interest rates and volatile foreign exchange rates are the top credit risks for Asia Pacific countries including the Philippines next year.

Can Bitcoin Play the Part of Savior for Currency Woes? – Nasdaq

While flight to safety investing has traditionally been directed towards investments with low risk-return profile, it is interesting to see how the events around the world have turned people to bitcoin, which is typically synonymous with high risk-reward.

Regulatory News 

Financial System More Vulnerable after Trump Victory, Says BoE – Financial Times (subscription)

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging because of global risks. 

Bank Capital Deal Takes Shape Despite Impasse Says Basel Head – Reuters

An outline deal on how much capital banks must hold to avoid a repeat of the financial crisis has taken shape, a top regulator said, despite the failure of negotiators at a two-day meeting to reach agreement on global standards.

Cyprus Tells Retail Brokers to End Bonus Schemes – Reuters

Cyprus’s financial regulator CySEC issued a warning to the mass of retail currency brokers registered on the island over their use of bonus schemes to encourage trading in risky products and related poor treatment of clients.

Company News

O’Donoghue to Land at Morgan Stanley – Profit & Loss

Martin O’Donoghue, who recently left his position as head of spot FX at Credit Suisse, is set to join Morgan Stanley in London, according to market sources.

Winn Exits EBS – Profit & Loss

Market sources tell Profit & Loss that Simon Winn has left EBS Brokertec where he was head of sales for Asia-Pacific.

BGC Promotes Three? – Profit & Loss

Sources familiar with the matter say that BGC Partners has promoted three executives in London and New York.

CME Europe Renews ‘Forex Liquidity Creation Program’ – Leap Rate

CME Europe has informed members that it will be extending its FX liquidity creation program commencing on December 1st.

SBI, SmartTrade Extend Deal – Profit & Loss

SmartTrade Technologies and Japanese firm SBI Liquidity Market haves extended their relationship with SBI adding SmartTrade’s pricing and distribution models to LiquidityFX, SmartTrade’s platform which is already deployed by SBI.

Market Savvy

Brexit Negotiations See GBP/INR Exchange Rate Crash – Exchange Rates

The British pound vs rupee rate losses stem from fears of EU spite in Brexit talks.

C$ Edges Higher Against Firmer Greenback as Oil Surges – Reuters

The Canadian dollar edged higher against its firmer US counterpart oil prices jumped on a deal by major producers to cut output and data showed the domestic economy grew at the fastest pace in more than two years.

Relief Rally for GBP/AUD as Aussie Sentiment Dented by Iron Ore Prices – Exchange Rates

GBP/AUD rises on exchange rate markets after Aussie dollar dented by building approvals.