Trading
Sea-change in EUR/USD views
The lifetime high in euro/dollar last week – breaking through 1.30 briefly on Wednesday (November 10) – has prompted most contributors on the FX Week Currency Forecasts Index to revise their euro/dollar forecasts upwards.
Concerted intervention ruled out
FRANKFURT – Despite increasingly vigorous comments from European politicians arguing in favour of stemming the onward rise of the euro, concerted intervention from Europe and the US is extremely unlikely.
Non-US airlines profit from low-flying dollar
NEW YORK – The weak dollar is giving airlines outside the US some relief from the impact of high fuel costs, according to their latest financial results.
Banks review yuan reval forecasts
BEIJING – Some bank analysts have brought forward their expectations of regime change in the Chinese yuan, following the rate hike by the People's Bank of China late last month.
The American-style participating forward
Clients wishing to trade at a pre-specified strike rate during a certain window period, should consider the American-style participating forward, say Bank of America options specialists Jim Kamphoefner in San Francisco and Ravi Chopra in Singapore
FX – the odd man out
The currency market is decoupling from other markets. This is not sustainable, says David Woo, head of FX strategy at Barclays Capital in London
Spotlight on Japan's yen policy
With the focus on the US, little attention has been paid to Japan. Jake Moore, FX analyst at Barclays Capital in London, examines the MoF's likely actions now the US election is over
Window barrier for a Canadian manufacturer
Canadian manufacturers are looking for innovative hedging ideas in an increasingly bleak exporting environment. Richard Stang, an FX sales dealer at TD Bank Financial Group in Toronto, suggests one potential solution
Bush win prompts dollar sell-off
NEW YORK – The re-election of President George W. Bush last week prompted a dollar sell-off, sending the euro to an all-time high just below 1.30 by close of trading on Friday (November 5).
Saxo and ANZ pick dollar lows
The dollar sank to record lows last week – nearly touching its all-time low just above 1.29 against the euro on Friday (November 5) and an eight-year low of 1.1877 against the Swiss franc the day before.
The US election effect
How will the US election affect the FX markets? Alan Ruskin, New York-based research director, 4Cast, reveals the results of his company's recent survey
China rate hikes boost FX volatility
CHINA – Volatility in global FX has surged amid speculation that the first rate hike by the People's Bank of China (PBOC) in almost a decade could spark a sooner-than-expected yuan revaluation, according to analysts.
ABN Amro revises forecasts
ABN Amro is among the banks revising currency forecasts in response to an increasingly bearish outlook for the dollar.
Dollar bears' hopes realised
The dollar bears on the FX Week Currency Forecasts Index saw their wishes fulfilled last week, as euro/dollar finally broke through the upper limit of 1.26 denied it since mid-February. But the euro's rise caught some forecasters off-guard, as they had…
Prime brokerage best for individual investors
Individuals who want to trade FX may find a prime broker will promote confidentiality, cut out settlement difficulties and help resolve credit issues, says Peter Wakefield, MD of research and product development at Record Currency Management in the UK
Rupee trading set to double, say local traders
MUMBAI – Daily trading volume in the Indian rupee could double by the end of the year to $300 billion. Despite the potentially negative impact of the current high price of oil – India being a net crude oil importer – local market participants are…
US dollar's central role
The dollar is likely to have a large role to play in the adjustment of the US economy, whether it is suited to it or not, writes Alan Ruskin, research director at New York-based analysis firm 4Cast
Q3 hits earnings but Q4 sees pick-up
NEW YORK – All major US commercial banks have now reported their third-quarter results, confirming poor trading conditions have hit returns for FX.
Chinese currency to rise by 25% against dollar
LONDON – China's currency is up to one quarter below its true value and a significant adjustment on the forex market is inevitable.
Reuters to build Chinese FX platform
SHANGHAI – The China Foreign Exchange Trade System (CFETS), a subsidiary of the People's Bank of China, has signed up Reuters to develop a global foreign exchange trading system for it and its member banks.
Dollar to continue its slide next year
Michael Klawitter, senior currency strategist at WestLB Global Financial Markets in Düsseldorf, sees the euro continuing its appreciation against the dollar next year
Reuters outage spells pricing void
LONDON - The pitfalls of relying on electronic systems was made clear to FX traders last week, as a power outage at Reuters' technical centre left them without pricing in European currencies for seven hours. The outage, which began at 2.34pm in London (9…
US banks hit by flat trading
New York – Poor market conditions have led to a sharp fall-off in FX revenues for some US banks, but others managed to post increased returns in the third quarter.
Hedging Chinese renminbi revaluation
To boost returns on the event of Chinese renminbi revaluation, trading on the recently launched Bloomberg-JPMorgan Asian Currency Index (ADXY) is the best solution, says Erik Herzfeld, head of regional options trading at JP Morgan in Singapore, and…