Trading
The ‘leverage range forward’ approach
A UK company exporting to the US looking to hedge long-term USD receivables may enter a ‘leverage range forward’ strategy to boost the hedge level, says Didier Meyer, FX options structurer and marketer at SG in Paris
Japan confirms March interventions
TOKYO -- The Bank of Japan, on behalf of the Ministry of Finance, spent nearly ¥1.2 trillion in March in a bid to ease the Japanese currency’s strength against the dollar and the euro.
Dollar consolidation brings FX manager joy
STAMFORD, CT -- A temporary halt in the US dollar’s downtrend helped 60% of currency managers on the Parker FX Index maintain positive returns in February. But returns were limited -- the index was up just 0.16% for the month.
Reuters mounts EBS challenge
LONDON -- Reuters is mounting a bid to unseat the Electronic Broking Service (EBS) as the premier broker in euro/dollar, a senior Reuters official told FX Week .
Market suspects yen intervention
TOKYO -- Speculation was rife in FX markets last week that the Bank of Japan was intervening to attempt to keep the yen above 120 per dollar ahead of the Japanese fiscal year-end today (March 31).
Tech glitch strikes CLS
NEW YORK -- The failed settlement of over 20,000 Australian dollar and Japanese yen trades on the Continuous Linked Settlement (CLS) service last week was caused by multiple technical faults, senior CLS officials told FX Week .
The fog of war
What should you do when near-term uncertainties cloud the FX outlook? Concentrate on the medium term and rely on the fundamentals, say Yianos Kontopoulos (right) and Marcel Kasumovich, FX strategists at Merrill Lynch in New York
Manila clamps down on ‘dollar hoarders’
MANILA -- Bangko Sentral ng Pilipinas, the Philippines central bank, last week imposed monetary and non-monetary sanctions on eight banks for violating FX laws.
Tech glitch strikes CLS
NEW YORK -- The failed settlement of over 20,000 Australian dollar and Japanese yen trades on the Continuous Linked Settlement (CLS) service last week was caused by multiple technical faults, senior CLS officials told FX Week .
The outperformance chooser option
Gavin Simms, head of FX strategies at Goldman Sachs in London, summarises an options solution for a euro-denominated corporate client looking to hedge sales in the US and Switzerland
Market suspects yen intervention
TOKYO -- Speculation was rife in FX markets last week that the Bank of Japan was intervening to attempt to keep the yen above 120 per dollar ahead of the Japanese fiscal year-end today (March 31).
The fog of war
What should you do when near-term uncertainties cloud the FX outlook? Concentrate on the medium term and rely on the fundamentals, say Yianos Kontopoulos (right) and Marcel Kasumovich, FX strategists at Merrill Lynch in New York
White-label trend takes root
LONDON -- The liquidity outsourcing industry is reaching a crucial stage in its development, according to bankers, vendors and analysts polled by FX Week .
Manila clamps down on ‘dollar hoarders’
MANILA -- Bangko Sentral ng Pilipinas, the Philippines central bank, last week imposed monetary and non-monetary sanctions on eight banks for violating FX laws.
White-label trend takes root
LONDON -- The liquidity outsourcing industry is reaching a crucial stage in its development, according to bankers, vendors and analysts polled by FX Week .
Aussie calls offer no worries hedge
Sara Sullivan, senior manager, FX options sales at ANZ Investment Bank in London, summarises an options solution for a corporate client concerned about a reversal of the AUD strength against the USD.
Further uncertainty grips market
LONDON -- FX markets breathed a sigh of relief last week as the war in Iraq got under way, but as one source of uncertainty was removed, another popped up.
War and the dollar
Near-term dollar direction will now depend on the length and ‘success’ of the war. But those factors are far from certain, says Jake Moore, FX strategist at Barclays Capital in Tokyo.
Dollar bloc upsurge boosts Australian forex turnover
SYDNEY -- Increasing interest in Australian dollar trading is boosting Australian banks’ forex turnover, senior market participants told FX Week .
ECB highlights dangers of over-concentrated market
FRANKFURT -- Market consolidation and a reliance on electronic trading could lead to an over-concentration of risk and liquidity among too few market participants, the European Central Bank has warned.