Top Headlines 

Tullett Completes $1.6 Billion Deal for Icap Brokers – Bloomberg

Tullett Prebon has completed the 1.28-billion-pound ($1.6 billion) purchase of the voice-broker business of its former rival Icap, creating a dominant firm in the business of matching trades between banks.

Euro Leaps in Thin Markets – Profit & Loss

Dealers are scratching their heads over a sharp move higher in EUR/USD in early Asian trading after the pair moved 130 points in one minute, before reversing.

HSBC Broker Banned by Hong Kong Regulator – Profit & Loss

A former broker at HSBC Broking has been banned for life by Hong Kong’s Securities and Futures Commission after he illegally used clients’ accounts for trading in futures markets, including FX contracts.

Dollar Falls as Investors Rebalance – Wall Street Journal (subscription)

Adjusting portfolios as year ends for accounting and hedging purposes.

Euro Soars While Dollar Falls Back – Business World

The euro jumped to its highest in three weeks in thin Asian trade, but was on track for a losing year on expectations that US President-elect Donald Trump’s policies will boost inflation and prompt the US Federal Reserve to hike interest rates more frequently.

China’s Yuan Suffers Biggest One-Year Loss Since 1994 – Reuters

China’s yuan strengthened against the dollar, but was on track for its biggest annual loss since 1994, which would make it the worst performing major Asian currency this year.

After a Roller-Coaster Ride in 2016, Here’s What Sterling Could Do in 2017 – CNBC

It has been a roller-coaster ride for sterling in 2016 as the currency plunged to levels not seen in more than a generation on the back of the UK’s vote to leave the European Union but analysts expect the currency to strengthen from current lows as Brexit negotiations start to take shape.

Brazil’s Currency, Stocks Post Best Year Since 2009 – Reuters

Brazil’s real currency and stocks closed 2016 with the best yearly performance in seven years, boosted by hopes that centre-right President Michel Temer would curb public spending following the ousting of his leftist predecessor Dilma Rousseff.

Will Aussie Dollar Tank When US Rates Overtake Australia’s in 2017? – Sydney Morning Herald

The last time this happened, the Aussie dollar plunged as low as US48¢.

The Year of Exotic Economic Policies: Global Overview for 2016 – The Market Mogul

All in all, probably the most interesting and eventful year since the 2007/2008 global crisis.

Regulatory News

Trump’s Pick for Budget Chief Liked Gold, Had Dim View of Dollar – Bloomberg

President-elect Donald Trump’s pick for budget chief, Mick Mulvaney, has been an active investor in gold and gold-mining stocks, often seen as a hedge against collapsing currency.

China Economy Improving, Rate Hike a Possibility – Reuters

Interest rates in China are already on an upward trend as the economy improves, People’s Bank of China adviser Sheng Songcheng told Reuters in an interview.

Analysts Expect Nigeria’s Federal Government to Review Access to FX in 2017 – Nigeria Today

Federal Government through the Central Bank of Nigeria needs to review and restructure the way manufacturing companies and genuine importers access foreign exchange to drive business activities in the nation’s seaport in 2017, analysts say.

Company News

Large Companies to Gain FX Trading Access on Moscow Exchange – Reuters

Large companies will gain access to currency and money markets on the Moscow Exchange for the first time from early 2017, Russia’s central bank said.

Bitcoin Bounces Back Despite Negative Publicity – Financial Times (subscription)

Even many of the currency’s backers warn that another sharp correction is likely to follow.

Market Savvy

Most Asia FX Set for 2016 Losses; Yuan Depreciates Most Since 1994 – Reuters

Asian currencies rose on the last trading day of 2016, but most were set to post annual losses as the US dollar climbed on expectations of higher interest rates next year.

GBP/AUD Exchange Rate Slips Below 1.70 as Commodity-Correlated Currencies Remain Strong – Exchange Rates

The British pound to Australian dollar exchange rate fell to its worst level in almost two weeks as risk-sentiment continued to benefit the AUD.

C$ Firms Against Softer Greenback in Quiet Year-End Trading – Reuters

The Canadian dollar strengthened against its US counterpart, as the greenback slipped in tandem with US Treasury yields in quiet holiday trading.