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Friday, October 7

7th Oct - GBP's flash crash, mediocre US jobs report





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EUROPE
Four lessons from the Eurozone crisis – and why future remains uncertainEuropp
The economics and politics of the Euro Crisis have been largely predictable * Monetary union has amplified the political stakes * The underlying problems of EMU never went away * Monetary union without fiscal and regulatory coordination is untenable

Why Europe wants a hard Brexit to hurt The Guardian
British ministers are being overly optimistic about the chances of a decent trade deal if they reject the single market


UNITED STATES
Trump versus ClintonDanske Bank
The economic and financial implications of the 2016 US presidential election

  SEPTEMBER JOBS REPORT
US jobs preview: Solid report expected with December rate hike looming – TF
Jobs Report: Everything You Need to Know – WSJ
September Jobs Report – The Numbers – WSJ
156,000 Jobs, 5.0% Unemployment Rate – Bill Mc Bride
Payrolls in U.S. Rise 156,000 as Americans Stream Into Workforce – BB
U.S. job growth slows, clouds case for Fed rate hike – Reuters
Payrolls Rise 156K, Unemployment Rate Rises To 5.0% - ZH
Data Disappoints, but Still Strong Enough to Keep Dec Alive – Marc Chandler
The September Jobs Report in 10 Charts – WSJ


OTHER
China monthly: An eventful October awaitsNordea

  GBP FLASH CRASH
Cable Just Flash-Crashed 800 Pips - Most Since Brexit – ZH
Algos, Barriers, Rumors: Theories On What Caused The Flash Crash – ZH
Fat fingered algos – FT
GBP goes EURCHF - what's going on – Polemic’s Pains
‘Flash Crash’ Hits Sterling – WSJ
GBPUSD flash crash will have consequences for policy – TF
Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed – BB
Sterling 'flash crashes' to 31-year low before recovering – Reuters
Pound’s Two-Minute Mystery Crash Puts Spotlight on Robot Traders – BB
GBP: last pound? – Nordea
BOE Says It’s Looking Into Cause of Overnight Sterling Plunge – BB
Crisis hit Pound to hit parity with Euro € – CityUnslicker
Wall Street Responds To The Historic "Pounding" – ZH
FX Flash – Freefall in sterling – ABN AMRO
Mark Gilbert: Currency Vigilantes Pound on Post-Brexit Sterling – View / BB
Pound's Crash Looks Less Flash Next to the Last Week's Declines – BB
Matt Levine: Flash Crashes and Insider Trading – View / BB


REGULARS
Danske DailyDanske Bank

Eye-OpenerNordea
All eyes on US employment data. ECB minutes spur debate on changes in December. Jobless claims support the dollar.

Morning MarketsTF
A flash-crash trauma for sterling overnight adds to the UK currency's woes as we look towards a big NFP print Friday that could move us closer to confirming a year-end Fed move on interest rates.

Euro wrap-upDaiwa
 
Daily Market CommentMarc Chandler
Sterling Stabilizes After Harrowing Drop, Now Jobs

Daily Market CommentMacro Man
Great expectations

Daily Press SummaryOpen Europe

Brussels PlaybookPolitico

US OpenZH
Global Stocks, US Futures Fall Pressured By Pound "Flash Crash" Ahead Of Payrolls

FrontrunningZH

FX UpdateTF
An enormous flow-driven drop in sterling overnight was exacerbated by thin liquidity and was mostly erased but the volatility was so great that BoE rate cut odds have to be fading fast. Meanwhile the USD view is at the tipping point ahead of US payrolls and earnings data today.

From the FloorTF
While markets are still reeling from the overnight algorithm-driven plunge in cable the real focus of today's trade is the US nonfarm payrolls print and its impact on both the dollar and the rate hike narrative.


FINNISH
AamukatsausNordea
EKP säilytti kyyhkymäisen linjansa * Neljä Fed-johtajaa äänessä työllisyysraportin julkistuksen jälkeen * Punta heikkeni markkinoiden arvuutellessa BoE:n Carneyn tulevaisuutta


Muutama ajatus Deutsche Bankista Peter Nyberg