The Norwegian krone is unlikely to become a safe-haven currency and overturn its risky asset status because it lacks sufficient liquidity and remains too closely correlated to other commodity currencies, according to analysts from SEB and Royal Bank of Canada.

The cost for Europe’s weaker countries leaving the euro could amount to up to 50% of GDP in the first year alone, according to a report published this week by UBS.

Investors could hedge the tail-risk of a deepening euro crisis by buying euro options against Eastern European cross rates, which are cheap relative to EURUSD volatility, say currency strategists such as George Saravelos at Deutsche Bank.

Offshore market meets convertibility rule; Global rebalancing bullish for Asian currencies

Inflation at 16-year high; Wealth gap widens

Lloyds Bank has joined CLS, the cash-settlement system for FX markets, as a full settlement member after becoming a shareholder earlier this year, CLS said in a statement.

Sterling may be the most susceptible currency to a global economic slowdown because of the twin impact of severe fiscal austerity measures at home and reliance on European export markets that are likely to falter due to an expected deterioration in global growth, says Morgan Stanley in a report published September 1.

The Swiss National Bank could maintain its 1.20 currency floor till 2014 with little risk of spurring inflation, such has been the deflationary impact of its appreciation over the past year, according to Credit Suisse.

EURCHF volatilities dropped the most on record after the Swiss National Bank (SNB) set a minimum exchange rate for the euro against the Swiss franc of 1.2000, and said it would provide “unlimited support” to maintain an exchange rate above that level.

Thomson Reuters, the inter-dealer trading platform, said average daily FX trading volumes rose 9% from the previous month. The volumes traded incorporate all three of Thomson's FX trading platforms: Thomson Reuters Dealing, Matching and Reuters trading for FX.

The Bank of Japan is unlikely to replicate the Swiss National Bank and impose a currency floor to weaken the value of its currency, because it isn’t regarded as a viable policy tool by Japanese authorities, according to a report from Barclays Capital.

EBS, the leading FX inter-dealer broker owned by ICAP, said FX trading volumes in August rose 2.3% to $904.4 billion, from the previous month, the company said in a statement

The latest Commitment of Traders report issued on Friday by the CFTC saw non-commercial IMM AUD long positions overtake JPY and a reversal of last week’s optimism in GBP.

Currency indexes outperformed their equity counterparts last month, although both asset classes suffered losses in an uncharacteristically turbulent August, according to data from an independent index provider.

EURCHF volatilities spiked again last week as the recent appreciation of the euro versus the Swiss franc went into reverse, while the SNB seemed reluctant to add more money market liquidity to bolster the cross rate.

Sterling may be the most susceptible currency to a global economic slowdown because of the twin impact of severe fiscal austerity measures at home and reliance on European export markets that are likely to falter due to an expected deterioration in global growth, says Morgan Stanley in a report published yesterday.

FXecosystem, the network solutions company that builds global connectivity in the FX market, has hired Catherine Hardiman as its new chief executive officer, the firm says in a statement.

The Swiss National Bank may need to impose further money-market liquidity measures to reinforce its goal of weakening the domestic currency, otherwise it could face losing much of the benefit of recent depreciation, say analysts.

The Royal Bank of Scotland has hired James Pearson as head of FX spot trading. Pearson will be based in London and will report to Tim Carrington, global head of FX, the bank said in a statement.

The USD is likely to strengthen against most currencies as investors who have hedged in the FX market reduce their foreign currency positions after losses in global equity markets.

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High-frequency trading firms and banks could improve their trading performance by up to 30% and increase reliability of their systems in co-location data facilities by using so-called ‘submersion cooled’ technology, according an interview with the co-founder of manufacturer Hardcore Computers by High-Frequency Trading Review (HFTR).

Bank of America Merrill Lynch’s global head of structured rates and currencies trading, Neh Thaker, has left the firm, according to two people familiar with the matter.

High-frequency trading firms and banks could improve their trading performance by up to 30% and increase reliability of their systems in co-location data facilities by using so-called ‘submersion cooled’ technology, according an interview with the co-founder of manufacturer Hardcore Computers by High-Frequency Trading Review (HFTR).

Local and global cash management banks are forging stronger partnerships as they aim to offer clients the widest geographic coverage they can in a low interest rate environment. Euromoney speaks with Paul Camp at Deutsche Bank and Tolga Egemen at Garanti Bank on how these partnerships aim to achieve and provide these services, with attention to detail in a seamless fashion.

The latest Commitment of Traders report issued on Friday by the CFTC has signaled a jump in dollar bearishness.

The Royal Bank of Scotland has hired Jon Underwood as part of the GBM FX options trading team in Stamford, Connecticut. Underwood will focus on trading Latin American options and will report to Ian White, head of FX options North America.

The decreasing likelihood of currency intervention by the Bank of Japan, coupled with the gloomy outlook for US economy, should see the USD/JPY continue to grind lower, say analysts.

Some 94% of buy-side and sell-side firms now use liquidity aggregation in their FX trading systems, compared with 65% last year, according to a survey conducted by StreamBase Systems, a Lexington, Massachusetts-based technology firm that builds systems for real-time data streaming.

The Royal Bank of Scotland has hired Ed Mount as head of FX technology-based trading, which will form part of RBS’s Global Banking and Markets division in London, the bank said in statement.