Japan continued to step into the market to weaken the yen after its record intervention on October 31, figures from the Bank of Japan suggest.

The euro bounced back from lows of $1.3485 against the dollar, ending the London morning close at $1.3600, as Italy was able to sell €5 billion of one-year Treasury bills in Thursday’s crucial bond auction.

Eurodollar options vols rose Wednesday amid a vicious sell off in Italian BTP government bonds which saw the bond curve invert and 10-year yields spiked more than 70 basis points to 7.48%.

LCH Clearnet, Europe’s largest clearing house, raised the margin required to trade Italian government securities on Wednesday, a move that could prompt a fresh escalation in the eurozone debt crisis and herald an attempt to fund a bail-out for cash-strapped Rome.

The euro finally succumbed to selling pressure on Wednesday as the Italian bond market went into meltdown, with technical analysts predicting more downside for the single currency.

Emerging market currency indexes bounced back to positive returns in October after a turbulent September, although returns have lagged behind their equity counterparts, according to data from an independent index provider.

Emerging market currency indexes bounced back to positive returns in October after a turbulent September, although returns have lagged behind their equity counterparts, according to data from an independent index provider.

The job prospects of Italian prime minister Silvio Berlusconi are dominating price action in the euro, but his departure is unlikely to trigger a sustained rally in the single currency.

FX trading volumes on EBS and Reuters fell in October as the high levels of volatility seen over the summer receded.

Credit Suisse has hired David Tait, who left his position as global head of FX proprietary trading at UBS in October, as global head of FX trading, based in London, according to three people familiar with the situation. This is a newly created position, the people said.

A surprise fall in Swiss consumer price inflation on Monday raised more speculation that the Swiss National Bank was to raise the floor in EURCHF to bolster its economy.

Leveraged funds’ net EUR short position moderated last week, falling to -60,060 contracts on November 1 from -76.512 on October 25, revealed the latest Commitment of Traders report.

Acropolis now: Athens threatens to derail the euro

Speculation heightened on Friday that the Swiss National Bank was set to up the ante in its fight on deflation and raise the floor it imposed in the euro against the Swiss franc to CHF1.25.

FX option clearing plan stalls; Option expiry concerns might deter smaller participants

Italian bond yields surged to 6.4% on Thursday, a euro-area high and at levels many believe put Italy on an unsustainable debt-repayment path.

Euro swap cost prohibitive; New buyers move in

Good Q3 results in volatile markets; Goldman revenues slump

European currencies, including the pound and safe haven of the Swiss franc, will lose ground against the US dollar and Japanese yen, as investors minimize exposure to Europe as the euro crisis intensifies, says Citi.

Japanese authorities are unlikely to intervene again in the next few days to weaken the yen, analysts claim, but Monday’s action indicates further large-scale intervention may not be far off.

The best returns during the next 12 months will be generated using technical analysis strategies, according to a survey at Bloomberg’s FX summit.

The contagion of a euro debt crisis will not be restricted to Europe’s weaker states.

Switzerland appears to be giving Japan an object lesson in how to intervene on the currency markets.

The Australian dollar looks vulnerable after the country’s central bank cut interest rates and highlighted the risks associated with the eurozone crisis, but many investors are still prepared to bet on further gains for the commodity-linked currency.

Nomura, the most improved FX bank by market share in this year’s Euromoney FX survey, has hired Nigel Khakoo as its new global head of G10 FX Options replacing Bernd Broeker, who left the firm in August, sources tell EuromoneyFXNews.

The euro may well retest this year’s low of $1.31 against the dollar, as lingering uncertainty over an impending Greek referendum on the country’s bail-out package weighs on the single currency.

Further rounds of Japanese intervention may follow, given the swift retracement of the USDJPY rally after the Ministry of Finance intervened on Monday.

The euro’s gains will be limited as markets await details on key areas of the eurozone debt crisis plan. The inevitable implementation risks of a long-term solution, coupled with bleak European growth prospects and a likely ECB rate cut will weigh on the single currency.

Guillaume Huteau, head of local markets FX options trading for EMEA and Latin America, has left Credit Suisse after 17 years at the bank, according to two people familiar with the situation.

Bank of America Merrill Lynch has hired Peter Klein as global head of FX prime brokerage.