Top Headlines

Euro Falls as Merkel Faces German Coalition Test After Win – Bloomberg

The euro dropped as Angela Merkel’s victory as German Chancellor was marred by a worse-than-expected result that leaves her facing tough coalition talks.

Euro Sell-Off in Wake of German Poll Seen as Shortlived – Financial Times (subscription)

Traders’ sense of political risk expected to linger as Merkel forms a shakier coalition.

Dollar Declines as Strong European Data Boosts Euro – Wall Street Journal (subscription)

Eurozone purchasing manager index rose in September, putting attention on prospects for tighter monetary policy in the bloc.

Hedge Fund Bets on US Dollar Weakness Hit Highest Level in Nearly a Year – Financial Times (subscription)

Hedge funds turned negative on the US dollar in the days before the Federal Reserve met, trades that would have been offside if held a day longer when the dollar rallied.

Sterling Rebounds as Traders Eye Brussels Talks for Brexit Detail – Reuters

Sterling rebounded, having slid on Friday after a speech by Prime Minister Theresa May failed to offer the kind of detail investors had been looking for to remove political uncertainty that has kept the currency under pressure.

Rodgers to Testify in Support of Johnson – FX Week (subscription)

Deutsche Bank’s former global head of FX believes Johnson followed industry practice when executing the large order.

Last Look and the Removal of “Likely” – Profit & Loss (subscription)

The debate around the wording of P17 has actually been healthy for the proprietors of the Code.

Unbundled Services: Credit and Liquidity – Old Problems, New Solutions – Profit & Loss (subscription)

One of the things that makes FX a truly unique market is both its scale and the diversity of the market participants that operate within it.

The Global Code: Back to the Future – Profit & Loss (subscription)

The success of the Global Code of Conduct published in May 2017 will only be truly observable when individuals and institutions alike feel the responsibility for observing the Code running instinctively through their everyday work.

Storming or Storm-Bound? Here’s an Emerging-Market Reality Check – Bloomberg

EM currency and bond indexes have reached three-year highs.

Bitcoin is Like Tulipmania, Says ECB Vice-President – Financial Times (subscription)

Vítor Constâncio dismisses cryptocurrency as an instrument of speculation.

Regulatory News

ECB Backed to Fix Floundering Euro Swaps Reform – Risk (subscription)

Swiss, UK and US progress leaves euro swaps market playing catch-up in rates reform.

Global Fund Houses Hold Crunch Talks with FCA to Clarify Mifid – Financial Times (subscription)

New EU rules clash with US law and threaten to disrupt industry’s biggest companies.

Regulator Wants Financial Industry to Self-Report Wrongdoing – The New York Times

After years as a sleepy federal backwater, the Commodity Futures Trading Commission became one of Wall Street’s most aggressive watchdogs during the Barack Obama administration.

Yellen and Cohn Said to Be on Shortlist to Lead Federal Reserve – The New York Times

The White House has created a list of about a half-dozen candidates to be the next leader of the Federal Reserve.

Mnuchin’s Incomplete Treasury Staff Could Be a Risk in Crisis – Bloomberg

The Treasury Department still lacks permanent officials in half of its highest-ranking political jobs more than eight months into Donald Trump’s presidency.

Former US Futures Commission Chair Says Regulation Solves Bitcoin Volatility – Coin Telegraph

The recent weeks of Bitcoin volatility, with Bitcoin price hitting an all-time high of $5,000, only to plummet back below $3,000, and then stabilize near $4,000, are a signal of what Bitcoin really needs – regulation.

Company News

Cürex Unveils Time Stamp Functionality – Profit & Loss

Cürex Group has unveiled plans to introduce additional time stamp functionality to its pre-trade analytics platform.

Gillespie Joins Cobalt – Profit & Loss

Kevin Gillespie has joined Cobalt in a sales and business development role.

Investec Bank Joins TraderTools’ ULN – Profit & Loss

TraderTools has announced that Investec Bank has joined its Unique Liquidity Network (ULN).

Market Savvy

New Zealand Dollar Slips After Unclear Election Result – Financial Times (subscription)

The New Zealand dollar was down 0.6 per cent after the weekend’s general election failed to deliver a clear mandate to any party.

Asian Currencies Tread Water, Fret Over Fed Rate Outlook, North Korea – Economic Times 

Most Asian currencies were little changed as investors weighed the odds of another US interest rate hike this year and remained cautious over tensions with North Korea.