Trading
Market rounds on dollar as US doubts gather
NEW YORK -- The dollar sagged to a four-year low against the euro last week, and fell across the board.
The leveraged reverse knock-in forward
With the recent strengthening of the Canadian dollar against the US dollar, a Canadian exporter with US receivables would be wise to consider a reverse knock-in forward, says Richard Stang, vice-president in FX sales at TD Securities in Toronto
Falling dollar, limited external adjustment
Issues surrounding capital flows and surpluses could lead to some countries reconsidering their currency pegs, says Steven Englander (right), chief currency strategist, Americas, at Barclays Capital in New York
BoA links major and emerging FX forwards in risk strategy drive
LONDON -- Bank of America (BoA) has merged its forwards and emerging markets forwards businesses in London, and hired three forwards traders globally as part of a continued drive to move to a strategic risk management model, a senior official told FX…
Indian market opens up
MUMBAI -- Reform of India’s FX rules could create the next large emerging market, signalling a lucrative new area for banks to exploit.
Plimsoll steps into currency overlay
NEW JERSEY -- Summit, New Jersey-based fund manager Plimsoll Capital is moving into currency overlay, and expects to secure its first clients this quarter, a senior official told FX Week .
IMF outlines reserve currencies criteria
WASHINGTON -- The currency composition of a central bank’s reserves is not an easy decision to make, according to a collection of case studies compiled by the International Monetary Fund (IMF).
Cycles, structures and the dollar
It is difficult to ascertain what drives the capital markets at any one time. Market participants often seem to confuse cyclical and structural factors, and this is especially true of the dollar now, says Marc Chandler, chief currency strategist at HSBC…
Riding with the euro
A European client buying US dollars should consider a three-year swap to use the current euro strength to their advantage, says Pritpal Gill, head of structuring at Lehman Brothers in London
Sars threatens C$ boom
TORONTO -- Booming forex business for Canadian banks could be under threat from the spread of severe acute respiratory syndrome (Sars) to Toronto, senior market participants told FX Week .
Euro powers on as investors desert US
LONDON -- The euro nudged above the $1.10 level against the dollar last week, as the market’s renewed focus on economic fundamentals hurt the greenback.
Market focus shifts to fundamentals
LONDON -- The US dollar slipped across the board last week, as the forex market’s gaze turned from war to economics.
Loonie zooms
Canadian dollar strength is set to continue, say Lauren Germain and David Mozina, of Bank of America’s FX strategy group in New York. And the market is reacting accordingly
Citi rides out tough Q1
NEW YORK -- Citigroup shrugged off concerns about reduced FX client activity in the first quarter of 2003, reporting largely flat forex trading revenues last week.
A firm view on the rand
Unexpected data revealing South Africa’s current account surplus has led Merrill Lynch to cite a firm view on the rand. Jos Gerson, chief economist for South Africa in Cape Town, explains key factors that must be taken into account in coming to a solution
War threat to Q1 FX profits
NEW YORK – The impact of the war in Iraq on FX will become clear this week, when the US commercial banks publish trading revenues for the first three months of the year.
Singapore dollar hit by SARS woes
SINGAPORE -- Speculation mounted last week that the Monetary Authority of Singapore (MAS) had intervened to protect the Sing dollar’s narrow trading range, as fears over the SARS virus escalated.
When stocks rocket
Markets are expecting a post war rally in equities. Jesper Dannesboe, chief FX strategist at Dresdner Kleinwort Wasserstein in London, looks at the implications for FX
ABN, Deutsche top forecast rankings
LONDON -- ABN Amro was the most accurate currency forecaster based on a one-month prediction made on March 7, while Deutsche Bank took top spot for 3m forecasts submitted three months ago in FX Week ’s table of forecasters (see below).
More prime brokers take to web
LONDON -- Automation of the prime brokerage industry is well underway, with a host of new services set to hit the market in the coming months.
Dare to compete
The Canadian dollar has a chance to shine, but will domestic exporters seize the opportunity? asks Craig Larimer (right), managing director, international research group, Banc One Capital Markets in Chicago