Top Headlines

FXPA Announces 25th Member: INTL FCStone – FXPA

The Foreign Exchange Professionals Association is pleased to announce the addition of INTL FCStone as the newest Supporting Member of the FX trade group, bringing the total number of institutional members of FXPA to 25.

Carney to Stay at BOE Until June 2019 to Help Address Brexit – Bloomberg

Bank of England Governor Mark Carney will extend his time in office by a year to 2019 to guide the economy through Britain’s split from the European Union.

Pound Is October’s Worst Performer as Brexit Angst Haunts Market – Bloomberg

The pound is the world’s worst-performing currency this month, trailing behind about 150 peers, as the first signs of how Brexit will look emerged in October.

Sterling to Fall to $1.15 After EU Divorce Proceedings Begin – Reuters

Sterling is likely to drop around five percent against the dollar soon after Britain starts its formal divorce proceedings from the European Union next year, but it is not expected to weaken to parity with the euro, a Reuters poll found.

Citigroup Says CFTC is Probing Banks’ Rate-Swap Businesses – Bloomberg

Citigroup disclosed a new government probe involving the industry’s trading and clearing of interest-rate swaps five months after paying $425 million to resolve claims that it attempted to rig derivatives markets.

US Dollar Likely to Drift Higher in the Year Ahead – Reuters

The US dollar is likely to drift higher into next year as the Federal Reserve forges a lone but gradual path toward higher interest rates, according to foreign exchange strategists polled by Reuters.

Pound to Dollar Exchange Rate May Retest Flash Crash Lows, GBP/USD Ticks Higher – Exchange Rates

Confidence in the British Pound and the US Dollar is likely to be fraught ahead of the latest Bank of England and Federal Reserve policy meetings, with the tone of policymakers likely to come under scrutiny.

Mixed Early News from FX Platforms – Profit & Loss

The first trio of FX platforms to report FX volumes for October indicate little change from September’s numbers although they were clearly helped by increased activity surrounding the Cable flash crash on October 7.

Switzerland Back to Battling Might of Currency Markets – Bloomberg

While policy makers haven’t confirmed it, they’re defending a de facto franc limit more than 10 percent stronger than the one they scrapped 21 months ago, according to Bank of America and the wealth-management unit of UBS Group.

Yuan Heads for First Back-to-Back Gain in Six Weeks After Data – Bloomberg

The yuan headed for the first back-to-back gain in six weeks after two manufacturing gauges topped the most optimistic economist estimates and a central bank official stepped up verbal defense of the currency.

Yuan to Revisit Mid-2008 Lows Over Next Year if Fed Hike Spurs Dollar – Reuters

China’s yuan will weaken to its lowest level since the financial crisis in the next 12 months as rising chances of a December US interest rate hike boost the dollar, a Reuters poll showed.

China, Japan Defy Textbook Theories as Falling Currencies Fail to Lift Exports – Economic Times

As already seen in Japan in recent years, what textbooks say should happen when a country’s currency falls – its exports gain – isn’t.

Regulatory News

Coeuré and Carstens Prime Candidates to Head Bank for International Settlements – Wall Street Journal (subscription)

A top official of the European Central Bank and the head of Mexico’s central bank are leading candidates to be the next head of the Bank for International Settlements, a person familiar with the matter said.

Europe’s Top Exchanges Approved by CFTC – FOW (subscription)

Europe’s top exchanges have been recognised by the main US futures regulator amid improving relations between regulatory agencies in the US and Europe.

How the EU Might Bungle a Brexit Benefit With an FTT – Financial News (subscription)

When the UK voted to leave the European Union in June, many believed the EU might actually benefit in some ways, particularly in relation to business shifting from an uncertain UK.

Company News

LCH Plans to Allow Use of Excess Collateral for Calls – FOW (subscription)

LCH, the London Stock Exchange’s clearing house, has proposed to change its rules to allow futures clients to use any excess collateral held by LCH as a buffer for subsequent margin calls.

Nasdaq Clearing Cuts Buy-Side Fees – The Trade

Nasdaq Clearing has reduced its Nordic buy-side clearing and collateral fees.

Credit Suisse Director Says That Blockchain is the Ultimate Cost-Cutter – eFinancial Careers

Financial services organisations have been slow to implement blockchain technology, but Credit Suisse has kicked off a number of projects to cut costs and address structural challenges and the all-important operational efficiencies.

Market Savvy

Dollar Edges Up as Fed, US Jobs Data Awaited – Reuters

The dollar edged higher as the final days of the contentious US presidential campaign overshadowed other major market events, as investors weighed the latest concerns about an FBI investigation into Hillary Clinton’s use of a private email server.

Aussie Bounces on Upbeat RBA, China – Reuters

The Australian and New Zealand dollars both gained strongly on the back of a handful of upbeat Asian economic surveys as investors picked through the messages from the week’s first major central bank meetings.

SA’s Rand Cheered by NPA Decision on Gordhan – IOL

The rand advanced to the strongest in almost six weeks, leading global gains against the dollar on speculation South Africa may avert a debt downgrade this year after prosecutors dropped fraud charges against Finance Minister Pravin Gordhan.