Top Headlines
Dollar Weakens vs Yen, Franc on North Korea Nuclear Tests – Reuters
The dollar fell against the Japanese yen and the Swiss franc as concerns about geopolitical risks following North Korea’s latest nuclear test over the weekend prompted a rush to traditional currency hedges.
- Gold Rises to 11-Month High, Dollar Weakens as North Korea Test Rattles Investors – Financial Times (subscription)
- Dollar Recovers from Losses After Jobs Report to End Flat – Wall Street Journal (subscription)
Sterling Slips Against Euro as Political Risks Weigh – Reuters
Sterling slipped half a percent against the euro, with the single currency rallying broadly as worries over North Korea drove a move away from riskier assets, and as domestic political uncertainty kept the battered pound under pressure.
Currency Traders on Edge as ECB Meeting Looms – Financial Times (subscription)
Financial markets keen to hear what central bank officials think about euro rally.
Euro-Sterling Parity? Not if the ECB and BoE Can Help It – Reuters
As parity between the euro and sterling inches closer, the European Central Bank and Bank of England face a date with destiny that neither of them wants.
Scholar Suggests Free-Floating Yuan as Economic Conditions Stabilise: Paper – Reuters
China should allow its currency to float freely as soon as possible with stable economic conditions allowing a window of opportunity to pursue exchange rate reforms, an influential government researcher told state media.
Sell the Swiss Franc if You Think the World Is a Better Place – Wall Street Journal (subscription)
Swiss franc proved slow to react to the brighter picture for the eurozone economy.
Russian Central Bank Launches New Rouble Liquidity Tool for Banks – Reuters
The Russian Central Bank said it had launched a new mechanism for providing struggling banks with extra rouble liquidity.
Mobius Foresees Cryptocurrency Crackdown Sparking a Rush to Gold – Bloomberg
Digital currencies are starting to get “out of control”.
Profit & Loss Stockholm is Next Week – Profit & Loss
After a hugely successful run of conferences in Copenhagen, Profit & Loss Scandinavia is spreading its wings with the first conference in Stockholm. The all day event takes place on September 14 at the Hotel at Six.
Regulatory News
Democratic US Commodity Futures Trading Commission member Sharon Bowen plans to step down September 29, leaving Chairman Christopher Giancarlo with a Republican majority for the first time.
Q&A: Asia Caught in the Basel Crossfire, Says Andrew Sheng – Risk (subscription)
Veteran regulator says international standards may be the wrong medicine for emerging markets.
Basel Committee Draws Up Fintech Checklist for Banks – Financial News (subscription)
The banking regulator reflects on a fast-changing sector and how financial institutions and their supervisors should respond.
Regulators Are Still Mostly Ignoring Millennials – American Banker
Millennials are leading a financial services revolution as changemakers, consumers and innovators.
Company News
BNP Paribas Partners with BestX – Profit & Loss
BNP Paribas has become the latest bank to formally partner with execution analysis specialists BestX, with the initial focus of the partnership being on the provision of post-trade transaction cost analysis (TCA) on algorithmic FX transactions, which will enable clients to gauge the quality of their execution versus a number of benchmarks.
Kahn Joins Fenics FX – Profit & Loss
Michael Kahn has joined Fencis FX as a managing director in the firm’s New York office.
FXSpotStream Volumes Rise in August – Profit & Loss
After three platforms reported mixed results last week, FXSpotStream has delivered a strong performance for the month.
Analysts Tell LSE to Buy ‘Hidden Jewel’ Euroclear – Financial News (subscription)
Post-trade giant would help UK exchange compete with Deutsche Börse in custody and settlement, after their merger collapsed earlier this year.
Market Savvy
South Korea Stocks, Won Slide After North Korea Nuclear Test – Financial Times (subscription)
South Korean stocks fell and the country’s currency retreated after North Korea said it had tested a hydrogen bomb capable of being mounted on a ballistic missile.
Stocks Fall, Havens Gain as Korea Tensions Flare: Markets Wrap – Bloomberg
Stocks fell and gold and the yen climbed as geopolitical tensions flared up again, with US President Donald Trump weighing new economic sanctions that could target China after a nuclear test Sunday by North Korea.
Bitcoin pulled back after China’s decision to halt a key cyber currency fundraising mechanism that had recently been gaining in popularity.