Trading
Dollar weakness to continue into 2004
Dollar weakness can be expected for many months to come and could continue even longer than first anticipated, says Michael Rosenberg, global head of FX research at Deutsche Bank in New York
‘Extendible forward plus strategy’ for corporates with sterling exposures
Barclays Capital’s senior FX structurer, Ben McMillan, suggests an ‘extendible forward plus’ strategy to enable a corporate with a stream of sterling receipts to lock in an enhanced minimum cable rate but participate in any further moves to the upside
MoF/BoJ re-enter FX market
The continuing weak economy and the growth differential between the US and Japan will become more pronounced over the course of this month, allowing the dollar/yen to regain the 115 level, say FX strategists Lauren Germain (right) and Uwe Parpart at Bank…
Philippines SEC drafts FX reporting guidelines
PHILIPPINES -- The Philippines’ Securities and Exchange Commission (SEC) last week announced draft guidelines on the preparation of foreign currency-denominated financial statements for corporations in the country.
CLS impact ‘neutral’ for RTGS systems
LONDON -- The introduction of the continuous-linked settlement service (CLS) for FX has had little effect on flows and liquidity on real-time gross settlement systems (RTGS), according to the latest Bank of England (BoE) quarterly bulletin.
Portals see record FX volumes
LONDON -- Heightened volatility last Tuesday (September 30) created one of the busiest days in years for FX trading, senior officials told FX Week . Electronic portals proved their worth, with many managing record spot volumes.
The post-G7 environment
The latest G7 communiqué seems dramatic compared with recent years, but it is logical and consistent over the longer term, says Simon Derrick (right), head of currency research at the Bank of New York in London
Total return analysis: currencies vs bonds
Establishing the risk and return characteristics of holding a currency position sometimes necessitates presenting a more formal economic interpretation of an FX transaction, says Robert Balan, head of financial market strategies at Saxo Bank in Copenhagen
China stands firm on peg
BEIJING -- China will continue to stand firm in the face of increasing international pressure to relax the yuan’s peg to the US dollar, analysts in the Asia-Pacific told FX Week .
Italians step up FX use
ROME -- Italian corporates have increased their derivatives use over the past 12 months as companies have honed their risk management skills to battle against currency volatility.
Appraising a decade of EBS
Forex market reflects on 10 years of the electronic broking duopoly LONDON -- On the tenth anniversary of the launch of EBS onto traders’ screens, the FX market has altered almost unrecognisably.
Banks failing SMEs on hedging
LONDON -- More than half of UK businesses with exposure to currency transactions totalling £20 million per year are failing to hedge their exposure, according to research produced by currency services firm Travelex in the UK. The lack of protection is…
UBS triumphs in currency derivatives
ZURICH -- UBS triumphed again in this year’s currency derivatives categories in FX Week ’s sister publication Risk magazine’s global derivatives rankings.
Asian currencies set to outperform
Asia is heading for a period of sustained growth. And with high US budget and current account deficits, the region is likely to replace the US for leading global economic growth, says Hans Redeker, global head of currency strategy at BNP Paribas in London
NZ dollar to strengthen
WELLINGTON -- The New Zealand dollar is set to strengthen against the greenback to at least 60 US cents by the end of the year, according to market participants in the Asia-Pacific.
The hedge that lets you ride the wave
David Faller, Chicago-based head of FX options at BMO Financial Group in Chicago, and Evan Steed, FX options trader in Toronto, suggest a cost-effective hedging strategy to enable a Canadian exporter to fully hedge 12 months of equal US dollar…