Top Headlines

Trump to Order Review of Dodd-Frank, Halt Obama Fiduciary Rule – Bloomberg

President Donald Trump will order a sweeping review of the Dodd-Frank Act rules enacted in response to the 2008 financial crisis, a White House official said, signing an executive action Friday designed to significantly scale back the regulatory system put in place in 2010.

Dollar Heads for Fourth Weekly Fall Ahead of Payrolls – Reuters

The dollar inched fractionally higher, as it limped toward US jobs data facing its fourth straight weekly fall in what has already been its worst start to a year in three decades.

Why February Will Be a Key Month for Dollar Bulls – Financial Times (subscription)

After retreat in January, several key events could reignite a dollar rally.

Why Forecasting the Dollar’s Reaction to a Trump Border Tax is a Difficult Job – Wall Street Journal (subscription)

The impact of trade on currencies remains weak and difficult to gauge.

Sterling Sinks for Second Day After Services Dip – Reuters

Sterling fell another 0.4 percent after a fall in a closely-watched services sector indicator reawakened concerns over the impact of last year’s Brexit vote on a previously resilient economy.

‘Five Reasons to Stay Short the Pound’ from Deutsche Bank – Financial Times (subscription)

Deutsche Bank does not like sterling much – a stance that has been pretty painful so far in 2017.

China Reiterates Opposition to ‘Currency War’ – Financial Times (subscription)

Days after Donald Trump said China was taking the US “for dummies” by devaluing its currency, Chinese officials have once again rejected the notion that the country is engaged in a race to the bottom.

Japan to Push Back if Trump Meddles with BOJ Independence: Sources – Reuters

Japan will push back firmly on any attempts by US President Donald Trump’s administration to meddle with its independence on setting currency and monetary policies, say sources familiar with the deliberations in Tokyo.

Global Markets Need “Due Attention” Post-US Election: BoJ December Minutes – Financial Times (subscription)

Members of the Bank of Japan have flagged that “due attention” needs to be paid to developments in global financial markets in the wake of the US presidential election, minutes from its December meeting show.

Draghi: Governments Should Stick by Rules to Prevent Fiscal Transfers – Financial Times (subscription)

European Central Bank president Mario Draghi has called on the bloc’s member states to rebuild trust between each other by sticking to the rules of economic and monetary union in a bid to prevent “transfers” from stronger to weaker nations.

Navarro’s Snipe Over Euro Manipulation Is an Accusation Too Far – Financial Times (subscription)

If there is one person who can affect the US trade deficit it is Donald Trump.

Who Will Trump Blast Next Over Their Currencies? – Bloomberg

With all the Trump administration’s jawboning about countries devaluing their currencies to gain an unfair trade advantage, financial markets are left wondering: who’s next?

India’s Rupee Stays Calm Amid Frothy Forex Markets – Wall Street Journal (subscription)

Amid febrile global currency markets that seem to twist with every new tweet from President Donald Trump, the Indian rupee has emerged as a rare spot of stability.

Concern Over Copy Trading Grows at Social FX Platforms – Euromoney

The growing popularity of social FX trading has some platform providers worried that inexperienced traders are taking excessive risks through strategies they don’t fully understand.

Regulatory News

CFTC Offers Extension for Margin Rule Compliance – Profit & Loss

The US Commodity Futures Trading Commission (CFTC) has issued a no-action letter, providing relief for swap dealers from having to comply with margin rules due to go into effect on February 4.

European Lehman Moment Wouldn’t Cause a Lehman Moment, ECB Says – Bloomberg

Europe’s biggest banks can be shut down in line with the bloc’s new bank failure rules without losses snowballing and causing wider mayhem, according to a European Central Bank study.

Russia to Embark on $2bn Currency Purchases to Dampen Rouble – Financial Times (subscription)

Russia is to spend more than Rbs113bn ($1.9bn) in the next month in an effort to weaken the rouble, marking a reversal from the 2014 currency shock that forced it to intervene heavily to stop the rouble falling too far.

Czech Central Bank Holds Rates, Stands Firm on Currency – Financial Times (subscription)

If you missed it among the Bank of England excitement, the Czech central bank has also stayed on hold and held firm on its policy of limiting strength in the koruna.

Company News

Banks Seek to Pry Open CCP Black Boxes – Risk (subscription)

Clarity on model inputs may have averted Brexit chaos, FCMs claim. 

Frankfurt Lobby Group Sees 10,000 UK Bankers Moving on Brexit – Bloomberg

Frankfurt expects as many 10,000 workers from Britain’s financial services industry to relocate to Germany’s banking capital because of Brexit, with the exodus likely to start within weeks, according to lobby group Frankfurt Main Finance. 

Digital Vega Rolls Out Intelligent Execution – Profit & Loss

FX options trading technology provider Digital Vega has launched Intelligent Execution, an engine that provides, the company claims, “a unique new FX option execution and workflow management solution”.

CME Targets Data for Growth – Markets Media

Expanding its market data business and continuing to rein in costs are the CME Group’s top two themes for 2017, according to Chairman and CEO Terry Duffy.

Market Savvy

Mexico, Brazil Currencies Firm as Fed Stands Pat – Reuters

Mexico’s peso hit a more than six-week high and Brazil’s real strengthened after the US Federal Reserve refrained from offering clear signals of a March interest rate increase.

C$ Gains as Currency Avoids Trump’s Ire – Reuters

The Canadian dollar made gains against its US counterpart as investors cheered the loonie’s absence from a list of currencies attracting the ire of US President Donald Trump.

Aussie’s Record Start to Get More Fuel from China Trade Bonanza – Bloomberg

The Aussie dollar is doubling down on its best-ever start to a year as a record trade surplus points to extra government income that may reduce the fiscal drag that has plagued the world’s 12th-biggest economy.