Top Headlines

US Regulator Gives Grace Period for Swaps Collateral Rule – Reuters

The US derivatives regulator gave swaps dealers a six-month grace period to comply with a variation margin rule that becomes effective March 1, saying most companies are unprepared for the change.

CFTC Hits FXCM with Another Fine – Profit & Loss

FXCM has agreed a settlement for $650,000 with the US Commodity Futures Trading Commission (CFTC), relating to allegations that the firm was under-capitalised following the volatility caused by the Swiss National Bank’s (SNB) decision to abandon its peg to the euro.

Dollar Stumbles After Trump Advisor Quits, Eyes on Yellen – Reuters

The dollar stumbled against major currencies overnight after US President Donald Trump’s national security advisor Michael Flynn quit under scrutiny over whether he discussed the possibility of lifting US sanctions on Russia before Trump took office.

Templeton Sees Dollar Near 125 Yen Amid `Political Boredom’ – Bloomberg

The dollar is set to strengthen toward 125 yen and approach parity with the euro in what is likely to be a year of “political boredom” compared with the shocks of 2016, according to Franklin Templeton Investments.

Pound Falls Below $1.25 on Inflation Miss – Financial Times (subscription)

The pound took a turn for the worse after UK inflation was lower than expected in January, with consumer prices rising just 1.8 per cent on an annual basis compared with expectations of a 1.9 per cent gain.

Japan, US Agreed FX Talks Best Left for Finance Leaders: Abe – Reuters

Japanese Prime Minister Shinzo Abe said he agreed with US President Donald Trump during a weekend bilateral summit that currency issues should be left for finance leaders of each country to discuss.

US Eyes New Tactic to Press China – Wall Street Journal (subscription)

The White House is exploring a new tactic to discourage China from undervaluing its currency to boost exports, part of an evolving Trump administration strategy to challenge the practices of the US’s largest trading partner while stepping back from direct confrontation.

Deutsche Bank Under Scrutiny in Russia Over Tax Practices – Bloomberg

The bank is suspected of using foreign-exchange swaps to lower the base for calculating income tax in Russia, a person with knowledge of the matter said.

The Mexican Peso: A Currency in Turmoil – Wall Street Journal (subscription)

The Mexican peso’s recent tumult is upending the way many global investors hedge their bets on emerging markets and raising the risks associated with investing in the developing world.

77% of Financial Execs Expect Blockchain for Post-Trade Use Within Five Years – Pensions & Investments (subscription)

48% of executives at banks, financial services firms, traders and government agencies said blockchain technology will be adopted for post-trade use in the next three to five years.

Regulatory News

Mnuchin G-20 Debut Clouded as US Unspools World Currency Pact – Bloomberg

Trump has accused trade surplus nations of unfair FX moves.

GOP Lawmakers Urge Trump to Scrap More of Dodd-Frank – Wall Street Journal (subscription)

Letter signed by 10 members of House Financial Services Committee.

China Forex Regulator Surveying Shanghai Firms About Potential Impact of Higher US Tariffs: Sources – Reuters

China’s foreign exchange regulator began surveying firms in Shanghai in early February about the impact on cross-border trade of possible protectionist measures by the United States, two sources said.

Company News

Citi’s FX Head to Retire – Profit & Loss

Citi confirms that James Bindler, global head of G10 FX at the bank, is retiring.

BGC FX Revenues Decline in 2016, But Fenics a Bright Spot – Profit & Loss

BGC Partners has released fourth quarter and full year results for 2016, which show that revenues were down in both its fully electronic FX and financial services businesses compared to the previous year.

Market Savvy

C$ Posts One-Week High as Trump Downplays Changes to Trade Ties – Reuters

The Canadian dollar strengthened to a one-week high against its US counterpart as US President Donald Trump downplayed potential changes to trade ties between the United States and Canada.

Asian Currencies Rise as Flynn Resignation Dents Dollar – Reuters

Asian currencies rose as the resignation of US President Donald Trump’s national security adviser dented the dollar, with the South Korean won getting an additional lift as local exporters sold the greenback.

US Dollar Closes Lower on Taipei Forex – Focus Taiwan

The US dollar fell against the Taiwan dollar, shedding NT$0.021 to close at NT$31.030 as foreign funds continued to flow into the country, dealers said.