Top Headlines

Dollar Near 10-Week Highs; Turkish Lira Tumbles – Reuters

The dollar steadied close to its highest level in ten weeks, with strong US wages data at the end of last week giving investors confidence that the Federal Reserve will hike rates in December and again after that.

Dollar Lower or Steady at Best Over the Coming Year: Reuters Poll – Reuters

Most major currencies will hold on to their gains made in 2017 against the dollar over the coming year, according to a Reuters poll of currency strategists who were not entirely convinced of the US administration’s ability to pass through tax cuts.

Sterling Has Worst Week in a Year as Political Worries Grow – Reuters

Britain’s pound fell to four-weeks lows, amid growing uncertainty over Prime Minister Theresa May’s control of the leadership and strong US labour market data that boosted the dollar.

Speculators Boosted Bullish Sterling Bets Ahead of May’s Botched Speech – Financial Times (subscription)

Hedge funds and other speculators carved out the biggest bullish bet on the pound in more than three years last week, just before Theresa May fumbled her much anticipated Tory conference address, newly released data show.

Turkish Lira Slumps on US Visa Row – Profit & Loss

The Turkish lira dropped some 5% at the Asian open after the US suspended all non-immigrant visa services in its Turkish consulates and Turkey responded as relations deteriorated.

Lira Plunge a Reminder That Fed Isn’t Only Emerging Market Risk – Bloomberg

Emerging-market investors were handed a timely reminder that political risk is never very far away.

Regulators Must Keep Up with Fast Markets: BoE’s Salmon – Profit & Loss

In a speech on Friday, Chris Salmon, executive director, Markets, at the Bank of England, discussed the changing market microstructure, in particular the advent of “fast markets” and stressed it was “incumbent” upon authorities to keep up.

Deutsche Börse Intensifies Efforts to Pull Euro Clearing from UK – Financial Times (subscription)

Deutsche Börse is intensifying its efforts to wrestle the prized euro derivatives clearing market away from London ahead of Brexit by drawing up a plan to share profits from the business with its members.

Not a Nirvana – Profit & Loss

The Mark Johnson trial in New York continues to make some seriously poor assumptions made about how the FX market operates.

Regulatory News

US Treasury Calls for Stronger Regulation of Clearing Houses – Financial Times (subscription)

The Trump administration has broken with its own drive towards financial deregulation by calling for heightened regulation of clearing houses as it said the UK’s planned exit from the EU raises the urgency of establishing a clear global regime.

Treasury Mulls, But Comes Out Against SEC, CFTC Merger – The Hill

The Treasury Department discussed a potential merger of the Securities and Exchange Commission and the Commodity Futures Trading Commission ahead of a report floating several rollbacks of capital markets regulations.

CFTC Commissioner: RegAT is D-E-A-D – Profit & Loss

The changing mood amongst US regulators towards the regulation of automated trading was reflected in a speech by CFTC commissioner Brian Quintenz late last week, when the newly-confirmed regulator said the controversial RegAT rule was “D-E-A-D”.

Carney to Extend Tenure as Financial Stability Board Chairman – Financial Times (subscription)

Mark Carney, the governor of the Bank of England, will stay on as chairman of the G20′s financial rule-making body for another year, lending some continuity to the leadership of the Financial Stability Board.

White House Wants a Fed Chief Willing to Revisit Financial Rules – Bloomberg

The White House team leading the search for the next generation of Federal Reserve leaders is seeking contenders willing to roll back financial regulations, but also with experience in monetary policy and the consensus-building skills to run a large organization, according to three officials familiar with the process.

CFTC Need Not Walk the Talk on Swap Data Harmonisation – Risk (subscription)

Global compatibility of data fields may be an unnecessary burden to put on an already-stretched industry.

Company News

RBS Head Says Banks Need Brexit Transition Details by Early 2018 – Bloomberg

Royal Bank of Scotland Group Chairman Howard Davies said details of a post-Brexit transitional deal with the European Union need to be outlined in the next five months to stop more financial-services jobs from leaving London.

BNPP Launches Triparty Collateral Platform – Reuters

BNP Paribas Securities Services has launched a triparty collateral management platform, becoming the first new entrant in the US$6trn market for almost two decades.

CME Sets Sights on Asia Pacific with New Sydney Office – The Trade

CME Group has opened a new office in Sydney as it grows business in Asia Pacific.

Forget Bitcoin. Have You Heard of IMFcoin? – Wall Street Journal (subscription)

IMF would like its special drawing rights to have a digital future, and has spent the past year thinking of a broader role for it.

Market Savvy

China’s Yuan Inches Up in Thin Trade After Week-Long Holiday – Reuters

China’s yuan inched up against the US dollar on the first day of trading after a week-long National Day holiday amid thin liquidity and as traders awaited cues on the currency ahead of a key national leadership meeting next week.

NZ Dollar Dips to Four-Month Low as Opposition Gains Ground – Financial Times (subscription)

The New Zealand dollar sank as much as 0.6 per cent after a final vote tally from the country’s September election put the centre-left bloc in a stronger position heading into coalition negotiations.