Top Headlines

Uneasy Calm Grips Markets Suddenly Silent Before US Vote – Bloomberg

Muted moves just sent a cross-asset gauge of price swings in equities, rates, currency and commodities to the lowest since 2014.

Pound Swoons Before Mark Carney Testimony and then Recovers – Financial Times (subscription)

Slide and rebound in sterling points to fragile market sentiment.

Some Banks May Adjust UK Activities Over ‘Next Year’ – Financial Times (subscription)

Mark Carney has said that some globally systemic banks based in the UK are in a position to “adjust some activities” that currently take place in the UK “over the next year” in response to concerns that the UK’s exit from the EU will jeopardise their current operating models.

Hammond’s QE Comments Trigger Fresh Decline in British Pound Against Euro, Dollar and G10 Majors – Pound Sterling Live

Pound sterling remains highly vulnerable to political sentiment and the words of the UK Chancellor appears to have been the undoing of a recent relief rally in the UK currency.

Don’t Blame US or Asian Traders for the Pound’s Collapse – Wall Street Journal (subscription)

There’s no evidence traders outside of Europe are more pessimistic on sterling, which has dropped most in European hours.

ECB and Bundesbank Differ Over HTFs – Financial Times (subscription)

The European Central Bank and the Germany’s monetary authority are at odds over the best way to prevent high-speed trading from amplifying market volatility.

Cobalt Partners with SETL for Blockchain Platform – Profit & Loss

Cobalt DL, which plans to launch distributed ledger-based FX post-trade platform in 2017, has announced a partnership with SETL to deploy its Open CSD distributed ledger within the platform.

Yuan’s Six-Year Low Makes Markets Yawn – Wall Street Journal (subscription)

Investors haven’t responded to the Chinese currency’s protracted slide the way they did to last year’s sharp drop.

Taiwan Futures Exchange Adds Euro and Yen – FX Week (subscription)

With the two new futures contracts, Taifex broadens FX offering to include its first two G10 pairs.

Asia’s Strongest Currency Adds to Challenges Facing Thailand – Bloomberg

Faced with a year-long mourning period for King Bhumibol Adulyadej that’s set to curb spending, Thailand’s economy also confronts a new challenge: a resurgent currency that may hurt exports just as the industry is showing some signs of recovery.

Wall Street’s Trading Desks Need a New Fitness Routine – Business Insider

Trading desks need to slim down and better focus their limited resources on key clients.

The Return of Dollar Shortages – Project Syndicate

Parallel currency markets, mostly for dollars, are back.

Regulatory News

New Approach, New Times: FCA Boss Starts to Make His Mark – Financial News (subscription)

City bosses will enjoy a rare treat this week: the chance to tell their regulator what to do.

Smaller Firms Might be Exempt from EMIR Clearing Mandate – FOW (subscription)

Firms with less than €8 billion OTC trades could be made exempt from clearing.

Company News

Technology Reducing the Cost of Forex Trading – Australian Financial Review

A survey by the payments and foreign exchange company, AFEX, shows that one-third of Australian small- and medium-sized enterprises planned to either start using or upgrade automated international payment platforms over the next year.

CLMV Leaders Push Border Trade in Local Currencies – Bangkok Post

Business leaders in Thailand and Cambodia, Laos, Myanmar and Vietnam (CLMV) are urging their governments to use local currencies for trading along borders instead of the US dollar to facilitate business and cut costs.

Market Savvy

CAD Pares Sharp Gains as Poloz Clarifies 18-Month Remark – Reuters

The Canadian dollar strengthened against its US counterpart but pared sharp gains made after its official close the previous day after the centralbank clarified remarks made by Bank of Canada Governor Stephen Poloz and as oil fell.

Rise in USD/CNY Reflects USD Strength – Investing

The trade-weighted USD has strengthened close to 5% over the past month, whereas the move in USD/CNY is only around 1.6%.

Asia Currencies Struggle to Benefit from Dollar’s Retreat; Yuan Up – Reuters

Most emerging Asian currencies gained on Wednesday as the dollar retreated from a near nine-month peak, while regional units struggled to sustain the momentum due to growing expectations of a US Federal Reserve interest rate hike in December.

Ahead of Key Aussie Session Finds the USD/AUD Exchange Rate Lower – Exchange Rates

Investors firmed on the Australian dollar ahead of Wednesday’s key Australian session, despite strong upside factors in the US dollar.