Trump, Rising US Yields Knock Asia FX in November

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Top Headlines

Trump, Rising US Yields Knock Asia FX in November – Reuters

Emerging Asian currencies were set to post monthly losses in November after Republican Donald Trump’s surprise US election win inspired a rousing rally in the dollar.

Oil Soars on OPEC Hopes, Dollar Renews its Surge – Reuters

Combined with fresh concern about China’s banking system, a stress test for British banks and a raft of euro zone data, the OPEC meeting topped off a wild November for financial markets that has been dominated by Donald Trump’s victory in the US presidential election.

Dollar Heads for Biggest Monthly Advance Against Yen Since 2009 – Bloomberg

The dollar was on pace for its best month against the yen since 2009 as signs of US economic strength spurred bets that monetary tightening will accelerate.

For Japan, a Weak Yen May Be Overvalued – Wall Street Journal (subscription)

The relationship between currencies, trade and economic health isn’t as simple as it used to be.

Sterling Stuck Around $1.25 After Sentiment Slip – Reuters

Sterling steadied in the middle of a three percent range it has held for most of the past month, any further progress against a slightly weaker euro undermined by a weaker reading of British consumer sentiment.

Scary Movie Sequel Beckons for Eurozone Markets – Financial Times (subscription)

Move through euro-dollar parity requires significant negative political news in Europe.

After Brexit and Trump, It’s Italy’s Turn to Keep Traders Awake – Bloomberg

There’s an acrimonious campaign, a vote and then a cliff-hanger result. The routine is all too familiar for bond and currency traders.

Renminbi Strengthens Further Despite Gains by Dollar – Financial Times (subscription)

The renminbi on track for a fourth day of firming against the dollar after China’s central bank once again pushed the currency’s trading band (marginally) stronger.

China Adds Curbs on Pulling Money Out of the Country – Bloomberg

China added new restrictions on pulling yuan out of the country as authorities seek to prevent a flood of capital outflows from destabilizing the financial system.

How We Know China’s Central Bankers Are Worried About the Yuan – Fortune

You can almost hear the exhales from China’s central bankers.

Macquarie Bank Merges Markets Businesses – Profit & Loss

Macquarie Bank says it is merging two of its three capital markets facing businesses: Macquarie Securities Group and the Commodities and Financial Markets Group.

Iran’s Currency Plummets More Than Five Percent Against Dollar – Fox News

Iranian media are reporting that the country’s currency has plummeted more than five percent against the US dollar in less than 10 days.

In the Upside-Down World of Zimbabwe, $100 Trades for $102 – Wall Street Journal (subscription)

Scramble for dollars was compounded when the central bank started issuing a parallel currency.

Regulatory News

FCA Warns Firms to Heed Findings as It Ends FX Remediation Scheme – FX Week (subscription)

UK Financial Conduct Authority has concluded FX remediation programme, stating it has ‘improvements’.

NFA Proposes Higher Transparency Rules for Retail Execution – Profit & Loss

The National Futures Association has submitted a proposed rule to the US Commodity Futures Trading Commission that will raise transparency levels for retail FX customers when executing in markets.

Banks to Finally Turn a Profit from Derivatives Clearing, Finds Research – The Trade

Research from Tabb Group estimates FCMs could record around $4.5 billion in 2016 from derivatives clearing.

Financial Transaction Tax Talks Postponed – Automated Trader (subscription)

December Financial Transaction Tax discussions postponed until January 2017.

New FX Liquidity Rule on Banks Approved by Regulator – Yonhap News Agency

South Korea’s financial regulator approved a plan to introduce a tough regulation on local banks’ foreign exchange liquidity.

Singapore, Japan Sign Bilateral Local Currency Swap Agreement – Channel News Asia

The Monetary Authority of Singapore (MAS) and the Bank of Japan announced a bilateral local currency swap agreement between the two countries, MAS said in a news release.

Company News

Burns Departs Thomson Reuters – Profit & Loss

Jodi Burns is leaving her position as global head of regulation and post-trade, FX, at Thomson Reuters in New York.

XTX Markets Partners with Prime Services Broker – Profit & Loss

Invast Global, an Australian-based non-bank prime services brokerage, has announced a deal with XTX Markets that will allow its clients to access XTX’s liquidity via its multi-asset prime services facility, PurePrime.

Calypso to Develop Technology on R3 Platform – Profit & Loss

Calypso Technology has become the first firm to partner with R3 to develop capital markets applications on its Corda distributed ledger-based smart contract platform.

Portware Announces Upgrades to its EMS – Profit & Loss

Portware upgraded its execution management system (EMS), Portware Enterprise.

Market Savvy

Emerging Stocks Trim Monthly Rout as Currencies Slip Before OPEC – Bloomberg

Emerging-market stocks trimmed their worst monthly drop since January as technology companies rallied, while most currencies weakened before OPEC’s decision on an oil supply-curb deal.

Ruble and Russian Stocks Tank as Oil Slides – Market Watch

Russia’s ruble and an ETF pegged to Russian equities are on track for their largest declines in three weeks.

Pound Australian Dollar Exchange Rate to Hold Gains Say Forecasts – Exchange Rates

The pound vs Australian dollar exchange rate continued to perform strongly and is likely to hold these gains unless Tuesday night or Wednesday see yet another reversal in commodity news.