Trading
Asia continues to rally against dollar
HONG KONG -- Asian currencies are undervalued and will continue to strengthen next year against a weak dollar, according to market participants.
The American double-accrual forward
With expected further euro appreciation, EUR/USD forwards are trading at a premium. Here, Anna Leung, head of corporate treasury marketing at HSBC, shows a way to get access to future hedging at a lower cost
Dollar recovery set to continue
Dollar recovery is likely to continue this week as short-covering and profit-taking extend further, according to Mitul Kotecha, global head of FX research at Calyon, London
Conservative approach to further dollar weakness
A one-year 'leveraged ratchet forward' may help hedgers looking for a conservative strategy who are expecting a lower EUR/USD next year, say Eric Ohayon, European head of FX structuring, and Chris Weiss, FX structurer, at Bank of America in London
Dollar weakening underestimated
A view that the Japanese authorities would intervene to protect the level of the dollar led much of the market to underestimate the extent to which the greenback would weaken against the unit, according to Ray Attrill, director of research at 4Cast. The…
Dollar/won move boosts options market activity
HONG KONG -- Volumes in the forex options markets have surged off the back of the rapid move in the dollar/won over recent weeks, say analysts.
BTM lead in Japanese forex slipping
TOKYO -- Bank of Tokyo-Mitsubishi (BTM) remains the top Japanese foreign exchange house in the country, with revenues for the first half of the Japanese fiscal year ending September 30 totalling ¥36.1 billion.
Soft knock-in knock-out forward
The soft knock-in knock-out forward presents a new way to look at knock-ins and knock-outs, taking away the negative impact of untimely barrier events says Enrico Ferrante, senior structurer at Calyon in Paris
Swissie sways FX sentiment
While the euro/dollar pair has continued to grab the headlines over the past month for its unpredictability, it is the Swiss franc/greenback pairing that has caused forecasters the most difficulties.
CLS adds four more currencies
HONG KONG -- CLS is to bring four new currency pairs onto its platform: the New Zealand dollar, the South African rand, the Hong Kong dollar and the Korean won.
Dollar to plummet further in 2005
Continued dollar weakness in 2005 will fuel European and Japanese currency strength and damage export demand, according to Tony Norfield, ABN Amro's global head of FX strategy in London
Intervention will not halt dollar weakness
SEOUL – The dollar's dive against Asian currencies to record lows is unlikely to be halted by large-scale intervention, according to analysts.
Will Asia dump the dollar?
The possibility of a dollar collapse must be taken seriously. The US's benign neglect is increasingly untenable, says Tim Clayton, analyst at market analysis firm Investica in London
Euro role grows, says ECB
The euro is increasingly being used as an international currency and its place in the global markets is becoming ever more important, a European Central Bank (ECB) official told delegates at the FX Week congress in London last week.
Congress clips
The continuous-linked settlement (CLS) service for settling foreign exchange trades announced the launch date for the next group of currencies to join the service.
Size of dollar fall surprises
With a swing of more than 9% in the euro/dollar pair in the month to November 22, banks underestimated the size of the dollar's fall across the board. But BNP Paribas, which ranked top for the one-month forecasts this week, picked up on the dollar's…
Dynamic hedging strategies in Turkish lira
Emerging markets options offer the benefit of extreme differences in implied volatility and interest rate differentials. Here, James Davison, FX derivatives marketer at ABN Amro in London, outlines how corporate clients can see the benefits investors…
Trends are the way forward
Jessica James, director of the risk advisory group at Citigroup in London, extolled the virtues of trend and carry strategies for FX trading at the FX Week Congress in London last week.
CME expects prop trading growth
The changing shape of the FX market and of the world economy will lead to significant changes in the way foreign exchange is traded.
Who wins from yuan revaluation?
With a potential yuan revaluation looming, Adam Cole, senior currency strategist at Royal Bank of Canada in London, analyses the impact on the G10 FX markets.
Slow start for India's retail FX market
MUMBAI – Nine months after retail investors were given the de facto go-ahead to start forex trading overseas, volumes have been subdued, say analysts.
Dollar to fall after G20 summit?
The G20 summit on Saturday could presage another drop in the dollar against the euro, according to forecasters on the FX Week Currency Forecasts Index, speaking last week.
Protecting against losses while making gains
Given the rapid, one-way move in the Canadian dollar (CAD), many hedgers who are short CAD are looking for innovative hedging ideas. John McAuliffe, manager, US FX options sales at the Bank of Montreal in Chicago, suggests some options