Top Headlines

Forex Markets Hand Debate to Clinton – Financial Times (subscription)

Movements in the currency markets suggested Hillary Clinton emerged victorious in the US presidential debate over Donald Trump, with notable moves in the Mexican peso, Canadian dollar and Japanese yen.

Trump Says China is ‘the Best Ever’ at Devaluing its Currency. That’s No Longer True – Washington Post

Donald Trump took less than 10 seconds in Monday’s presidential debate to attack China.

CBOE/ Bats: Volatile Acquirer – Financial Times (subscription)

The Chicago Board Options Exchange badly wants a systems upgrade.

CLS to Launch Netting Service Using Blockchain Technology – Profit & Loss

CLS Group is planning to release a payment netting service, CLS Netting, for buy and sell-side institutions’ FX trades that are settled outside of its settlement service.

IMF: Swiss Central Bank Should Focus on Negative Interest Rates – Reuters

Switzerland’s central bank should adjust its policy to favor negative interest rates rather than currency interventions as it seeks to weaken the Swiss franc’s appeal, the International Monetary Fund said.

Draghi ‘Not Assessed’ London’s Euro Clearing Role After Brexit Vote – Financial Times (subscription)

Mario Draghi has not yet taken a view on the issue of moving vital eurozone clearing activities from the City of London to the continent in the wake of the Brexit vote.

ECB and China Extend Currency-Swap Agreement – Wall Street Journal (subscription)

The European Central Bank and the People’s Bank of China have agreed to extend a currency-swap arrangement put in place three years ago as part of a string of moves aimed at encouraging global use of the renminbi.

China’s Yuan Faces Long March to Challenge Dollar After SDR – Bloomberg

The yuan’s journey toward challenging the dollar as a global reserve currency is only just beginning.

Regulatory News

Rising Global Trade May Bring Bigger Currency Swings, Poloz Says – Bloomberg

Central banks may need to create larger swings in currencies and interest rates to keep inflation on track as globalization reduces the role of local forces, Bank of Canada Governor Stephen Poloz said.

Priips Set to Shake Up FX Transaction Cost Analysis – FX Week (subscription)

European regulators poised to place new burdens on asset managers regarding FX.

Russia Close to Debuting China Market Link, Bourse Chief Says – Bloomberg

Bank of Russia started yuan clearing centre on Friday.

EM Central Banks Up FX Intervention to Preserve Stability – FX Week (subscription)

Maintaining financial stability has become an increasingly important reason for EM central banks when they operate in the FX markets, research from the BIS shows.

FCA Cautions Against Trading With Virtual Currency OneCoin – Professional Adviser

The Financial Conduct Authority has warned consumers to be wary of trading with the virtual currency OneCoin, which claims to offer the chance to make money through the trading and ‘mining’ of virtual currencies.

Company News

Saxo Bank to Deploy Game Changing Order Execution Model for FX and CFDs – Finance Magnates

Saxo Bank has announced that it is launching a brand new order execution model for its clients that are trading foreign exchange and contracts for difference (CFDs).

Renminbi Share of Swift Payments Edges Downward as Dollar Gains – Financial Times (subscription)

China’s currency held its position – more or less – as the sixth-most used currency in international transactions, suffering only a slight loss compared to other currencies which fell back as the US dollar’s dominance grew.

Bitcoin Finds Berth at Sberbank’s Moscow Office Despite Ban Talk – Bloomberg

While Russian authorities are still trying to define the legal status of bitcoin, the virtual currency has found use in Moscow in the lobby of the country’s biggest bank.

Market Savvy

Yen Drops as Traders Give First Round to Clinton; Peso Rebounds – Bloomberg

The yen fell from a one-month high and Mexico’s peso surged as demand for havens declined as the first US presidential debate between Hillary Clinton and Donald Trump.

US Dollar Edges Lower in Asian Trade While Philippine Currency Sinks to Lowest Point in Seven Years – China Post

The US dollar slipped Monday as traders shift focus from central bank policy to the US presidential election, while the Philippine peso tumbled to a seven-year low on worries over President Rodrigo Duterte’s policies.

Ruble Volatility Slides to Two-Year Low on Carry Trade Appeal – Bloomberg

Price swings in Russia’s currency abated to the least in two years as carry traders hung onto the second-best returns in the developing world.

The Kiwi Dollar is Consolidating: A Value Opportunity or a Falling Knife? – Seeking Alpha

The NZD has been weakening against major currencies.