Trading
August trading floors forecasters
August may be providing plenty of opportunities for traders, as sharp moves slice through the seasonally thin markets. But the price volatility is creating havoc for FX forecasters in the unpredictable environment, according to the FX Week Currency…
China eases restrictions on capital account
BEIJING – The Chinese government made further steps towards liberalising the capital account last Wednesday by allowing insurance companies to invest 80% of foreign exchange assets overseas.
Is yen decoupling from oil?
The yen's gains against the greenback last week suggest an apparent decoupling from oil says Neil Mellor, currency strategist at Bank of New York in London
Hedging when the market moves against you
A nine month sliding forward structure can help your company achieve attractive FX hedging rates when the market has moved substantially beyond your budget rates, says Adam Gilmour, head of FX options sales in Citigroup's emerging markets sales and…
Return of the voice broker
Cantor Fitzgerald revives voice broking market with spin-off firm. NEW YORK - Cantor Fitzgerald reversed a trend of consolidation in the broking market last week by spinning off a new firm to focus exclusively on voice broking.
Rate differentials bolster peso trading
MEXICO CITY – Speculation on the direction of US interest rates is bolstering already high levels of trading in US dollar/Mexican peso.
Yen accuracy slips in static month
Forecasting moves in the yen pairs has caused trouble for contributors to the FX Week Currency Forecasts Index over the past month.
Euro/sterling kicks off
The summer football transfer season is providing unexpected support for euro/sterling, writes Pete Luxton, global markets adviser at Informa Global Markets in London
Russian peg change to drive rouble trading
MOSCOW – A touted move from a dollar peg to a dollar-euro basket will be the key driver for trading in the rouble in coming months.
Forward structure for an exotics-shy corporate
High price volatility is making EUR/AUD exposure challenging to manage. Sara Sullivan, ANZ’s senior FX options sales manager in London, proposes a solution for a European multinational that receives payments from an Australian subsidiary
HSBC’s profits up by a third
LONDON – HSBC’s FX profits so far this year are up by more than a third compared with last year, with a massive $902 million earned from FX dealing in the first half.
Currency transfers for multiple entities
Straight-through processing FX for intra-company transfers used to be impossible. Royal Bank of Scotland’s Stamos Fokianos explains how this can now be done via RBS FiX
Sri Lanka rupee set to fall further
Domestic pressures and the rising oil price are likely to lead to further devaluation of the Sri Lankan rupee, say David Mann, senior international economist and Gill James, chief economist for the Middle East and South Asia at Standard Chartered in…
Sharp moves hit 3m forecasts
The past three months have been one of the most difficult for forecasting quarterly currency moves since the FX Week Currency Forecasts Index launched at the start of this year.
Bloomberg and Cognotec partner on streaming rates
LONDON – Bloomberg is bringing streaming FX rates to users of its Bloomberg Professional terminals, courtesy of a joint venture with FX vendor Cognotec, the two firms will announce today (August 2).
Dollar vol could be back
LONDON – The global currency markets could be in for a bout of unseasonal volatility and trading activity if the US dollar breaks through its recent range against the euro, traders said last week.
US equity markets to lead dollar path
US equity market performance will become critical for the dollar, say Neil Mellor and Simon Derrick, currency strategists at Bank of New York in London
Billiton transfers forex to Europe
MELBOURNE – Australian banks in the UK could see added flow going through their FX dealing desks later this year, when the world's largest mining company transfers its remaining forex trading from Melbourne to Europe.
IGM calls Swissie's 3m rise
The Swiss franc appreciated more than 5% over the past three months, as disappointing eurozone data made it a better comparative bet than euro against the sinking dollar. The Swiss National Bank's surprise June 16 interest rate hike, and much better than…
Making amends for seasonal trends
Lower volatility and range-bound markets call for capital preservation with enhanced yields during the summer, says Jeffrey Lins, director of quantitative analysis at Saxo Bank in Copenhagen
Is sterling heading for a fall?
Falling UK corporate profitability and a new cable high spurs memories of 1992 and Black Monday, says Hans Redeker, global head of FX strategy at BNP Paribas in London
Yuan convertibility moves a step closer
BEIJING – China took another step closer to yuan convertibility last week with an announcement that it is further liberalising non-trade related currency transactions. From August, more multi-national firms throughout the People’s Republic will be able…
Selling options to resolve carry trade dilemma
Clients are putting off dollar/yen carry trades until the yen appreciates. But by selling options on cross-currency swaps, clients could earn money while waiting for the Japanese unit to reach a level more suitable for a carry trade, says Phileas Wong,…
US banks still seeing record earnings
NEW YORK – Record earnings from foreign exchange continued into the first half, according to US banks’ financial results published last week. Citigroup, State Street and Bank of America all reported new highs in their FX or trading results, as currency…