Top Headlines 

Euro Slides to Six-Week Low as Catalonia Vote Weighs – Financial Times (subscription)

The euro dipped to a six-week low in Asia trading after Sunday’s historic independence vote in Catalonia continued to drag down the currency.

Soaring US Yields Pushes Dollar Up for Second Day – Reuters

The dollar climbed for a second consecutive day as a strong reading for US manufacturing activity pushed bond yields higher, prompting investors to trim some of their extreme short bets against the greenback.

Dollar on the March, Rates Views ‘Much Too Conservative’: Goldman – Financial Times (subscription)

The dollar continues to push higher, with the dollar index tracking its moves against a basket of six other major currencies up by 0.45 per cent on the first trading day of the fourth quarter.

Sterling Slips on Weak UK Construction Numbers – Reuters

Britain’s pound slipped after numbers showed activity in the construction sector unexpectedly slowed to a 14-month low in September, suffering the sharpest fall since just after last year’s Brexit vote on concerns over the economic outlook.

Platforms Volumes Show Sizable September Boost – Profit & Loss

The first four platform providers to publish FX average daily volume (ADV) for September have all reported significant month-on-month (MoM) and year-on-year (YoY) increases.

Are FX Traders Being Unfairly Treated? – Profit & Loss (subscription)

Authorities seem content to fine banks – and accept the traders’ dismissals – but not question the cultural issues that clearly pervaded the industry.

Struggling Hedge Funds Take Bigger FX Gambles – Reuters

Struggling to make money in a world of ultra-low volatility, hedge funds are taking bigger – and riskier – gambles in foreign exchange markets.

FCA Criticised for ‘Serious Error’ in Libor Cases – Financial Times (subscription)

The Complaints Commissioner has partially upheld cases against the UK’s financial watchdog brought by two former UBS traders caught up in the Libor-rigging scandal.

Despite Brexit, Pound Remains a Reserve Currency – But for How Long? – Wall Street Journal (subscription)

Sterling’s status as a global reserve currency is little-changed a year after Brexit, a vote that prompted predictions of the pound losing favor among central banks.

Haven Currencies Are Not Always a Safe Bet – Financial Times (subscription)

Carry trade behaviour often a better explanation for currency moves.

Japan’s New Opposition Should Be Good for the Yen, Goldman Says – Bloomberg

While little is yet known about Japan’s new national opposition party, any gains in polls for the group led by Tokyo Governor Yuriko Koike should be good for the yen, according to Goldman Sachs Group.

Turkey’s Tourism Recovery Hasn’t Saved Its Currency Yet – Bloomberg

Foreign currency inflows from tourism hit decade low in March.

Regulatory News 

Extended Resolution Swap Stays Divide European Lawmakers – Risk (subscription)

SRB defends EC moratorium proposal, but Parliament and Council are turning against it. 

BoE Sets Out New Bail-In Rules for International Bank Failures – Financial Times (subscription)

The Bank of England has published new rules to avoid the chaos of a Lehman Brothers-style collapse by setting out how much of a special internal debt the biggest international banks must hold to be used as a bail-in by regulators in a crisis.

Esma Delay Brings Confusion to Transparency and Position Limits – Risk (subscription)

Local authorities will apply key elements of Mifid II temporarily, owing to Esma backlog.

Another MiFID II Impact: Best Execution of Derivatives – Pensions & Investments (subscription)

Add derivatives transaction cost analysis – measurement of best execution – to the list of services that could grow with the advent of MiFID II in January.

SEC Says Hackers Accessed Two People’s Personal Information – Wall Street Journal (subscription)

Hackers who broke into a US regulatory database that stores market-moving corporate information also accessed personal details about two people, including their names, dates of birth and Social Security numbers.

Cryptocurrency Flash Crash Draws Scrutiny from Watchdog – Bloomberg

A popular digital-coin exchange is drawing scrutiny from US regulators over a June flash crash that erased most of the value in the second-largest cryptocurrency before traders had time to blink their eyes.

Company News 

NEX Optimisation to Boost Spending as Parent Expects Financial Hit – Profit & Loss

NEX Group (Nex) has provided a trading update for investors, in which it has flagged increased spending at its Optimisation division under which umbrella the firm’s post-trade businesses operate.

Spiteri Exits NEX – Off to 360T? – Profit & Loss

Market sources tell Profit & Loss that Lisa Spiteri, regional manager, e-FX distribution for APAC, India, Japan and Korea for NEX Markets, has left the firm.

RBA FX Division Gets New Head – Profit & Loss

Dr Bradley Jones has been appointed to the position of head of International Department at the Reserve Bank of Australia.

Goldman Sachs Explores a New World: Trading Bitcoin – Wall Street Journal (subscription)

Move would make it the first big Wall Street firm to deal directly in the growing yet controversial cryptocurrency market.

Market Savvy

C$ Retreats Against Firmer Greenback as Oil Prices Slide – Reuters

The Canadian dollar weakened against its US counterpart after a drop in the price of oil, one of Canada’s major exports, and a broad rise for the greenback.

Emerging Stocks at One Week High, Dollar Pressures Currencies – Reuters

Emerging equities rose to a one-week high, following gains in developed markets after strong US activity data, but a firmer dollar kept currencies such as the lira and rand under pressure.

The RBA Just Knocked the Australian Dollar Back Below US78c – Business Insider

The Australian dollar is at its lowest level since July after the October RBA rates decision.