Top Headlines

Trump Policy Vacuum Sends Dollar Skidding Lower – Reuters

The dollar sank to a five-week low below 114 yen and was on course for its worst week since November, hit by a loss of confidence in the US reflation trade which has dominated markets since Donald Trump’s election.

What Wall Street Wants from Trump – Financial Times (subscription)

Bankers are bullish but a populist president may not want to prioritise relief for big banks.

CFTC’s Massad and Giancarlo, Congressman Huizenga, Among Speakers at SEFCON VII – Profit & Loss

Just days from Inauguration, SEFCON VII takes a look at the incoming Trump Administration, bringing together a unique roster of speakers from across the regulatory, legislative, banking and buy side sectors.

Sterling Falls to Weakest Level in Three Months – Financial Times (subscription)

Sterling fell to the weakest level in three months as comments by Bank of England governor Mark Carney on the risks of Brexit subsiding failed to soothe market jitters over the outlook for the UK economy.

Mexico’s Peso Hits Record Low on Trump Talk of Wall, Auto Tax – Reuters

The Mexican peso weakened to a historic low of 22.04 per dollar and the country’s stock index fell, after US President-elect Donald Trump warned US auto companies would face a high tax for products made south of the border.

Offshore Renminbi Enjoys Extended Show of Strength – Financial Times (subscription)

Chinese currency’s outperformance versus onshore rate could help slow mainland outflows.

A Free-Floating Yuan Is Looking a Bit More Likely – Bloomberg

As China’s yuan swings back into the global spotlight, it might seem like an odd time for authorities in Beijing to loosen their grip on the tightly-managed currency.

Banks Seek to Standardise Cross-Currency Settlement Dates – Risk (subscription)

Talks under way to exchange principal amounts on International Monetary Market (IMM) dates to allow for greater netting.

Wall Street Poised to Post Best Finish to Trading Year Since ’09 – Bloomberg

Wall Street firms are expected to post the biggest fourth-quarter trading haul since the financial crisis as the US election triggered a frenzy of global markets activity from government bonds to currencies.

The Future of OTC Market Structure – Profit & Loss

Scott Fitzpatrick, CEO of Tradition SEF, talks to Profit & Loss about the ways in which the swaps market structure has – and hasn’t – evolved since the introduction of Swap Execution Facilities (SEFs).

How to Deter Misconduct in FX? – Profit & Loss

Simply attach a copy of this document as an addendum to the Global Code of Conduct.

Regulatory News

Draghi Calls for ECB Oversight of UK Clearing After Brexit – Bloomberg

Mario Draghi said the European Central Bank should maintain oversight of UK’s vital clearing business even after Britain leaves the European Union, touching on an issue that became a battleground after the June referendum.

US Regulator Warns on Tough UK and EU Derivatives Battle – Financial Times (subscription)

The UK’s looming departure from the European Union will pose a challenge for London’s derivatives trading and infrastructure according to Timothy Massad, the outgoing head of the US Commodity Futures Trading Commission.

Fed’s Dudley Says More Rules Alone Won’t Cure Bank Culture Problems – Wall Street Journal (subscription)

New York Fed president says bankers need personal accountability and to call out bad conduct.

US Plan to Ease Wall Street Rules May Not Be Worth Cost for Banks: Fitch – Reuters

Leading US banks may find that a Republican plan to ease restrictions on Wall Street is not worth the additional cost of capital, a report from Fitch Ratings said.

Company News

NEX Data, Tradition Agree Global Data Partnership – Profit & Loss

NEX Data (Nex Data), a NEX Group business that provides global pricing data and information solutions, and Tradition, one of the largest interdealer brokers in over-the-counter commodity and financial products, announce today that they have agreed a distribution partnership.

BNY Mellon Hires Two? – Profit & Loss

BNY Mellon has apparently made two senior hires to its FX business.

360T Hires Linker – Profit & Loss

360T Group has appointed Jack Linker as the head of bank and hedge fund sales for the Americas.

The Three Worst Currencies of 2017 Show That Politics, Not Economics, Are Driving Markets – Bloomberg

Societe Generale’s Juckes sees politics weighing on peso, pound, and lira.

Oanda Appoints New CEO – Profit & Loss

Oanda’s board of directors has appointed Vatsa Narasimha, formerly its CFO, as the new CEO of the firm.

Market Savvy

Lira Slide Pauses as Dollar Falls – Financial Times (subscription)

The currency’s record-breaking slide reversed slightly on as a weaker dollar provided a boost for emerging market currencies.

Krona Eyes 9.50 After Inflation Beat and Riksbank Minutes – Financial Times (subscription)

The Swedish krona is within touching distance of passing 9.50 per euro for the first time in four months, as new data showed signs the country’s stubbornly low inflation rate could finally be accelerating.

Currencies Firm, Investors Eye Polish Parliament Row – Reuters

The zloty rebounded from an early fall against the euro as a general retreat in the US dollar buoyed Central European currencies, though investors remain worried about the blockade of Poland’s parliament by opposition lawmakers.