Trading
Unusual suspects boosted by the return of rate differentials
LONDON -- Interest rate differentials are making a comeback as a driving force in foreign exchange, as currencies backed by high interest rates continue to strengthen.
New market, new risks
LONDON -- The structure of the FX market is developing at a rapid pace, said Paul Fisher, head of the Bank of England’s FX division. That brings new opportunities -- but also new risks, Fisher told delegates at FX Week’s inaugural congress held in London…
eB2C relationships prosper
LONDON -- Bank-to-client relationships remain vital despite the march of electronic trading in forex, heard delegates at the inaugural FX Week Congress last week.
CURRENCY SPOTLIGHT - Sterling strong for now
Sterling should remain supported by favourable fundamental and structural factors, but it is vulnerable to fluctuations in investor risk appetite, says Prebon Yamane’s Lena Komileva
Cross-products find their feet
LONDON -- Cross-product trading is no longer just a "mantra" chanted by sell-side bankers, said Matt Desselberger, managing director, corporate structured products group at Deutsche Bank in London.
Online FX: a revolution in the making
Corporates and institutions have embraced the idea. Now, the market will judge which platform best serves their needs, says Stephen Smit, managing director, Global Link, Europe
Dollar finds its wings
The eurozone’s short-term advantage over the dollar has peaked. Citigroup, winner of FX Week ’s Best Bank in Research & Strategy Award, remains bullish on the US unit, says Robert Sinche, global head of FX research at Citigroup in New York
Top five dealers close ranks
Shrinking market rewards top players in biggest ever forex survey
Aussie funds shun overlay
SYDNEY -- Australian superannuation funds’ use of currency overlay has declined, according to a report made public last week.
Congress bites
CME launches online futures tool
Real makes shaky steps to recovery
SAO PAULO -- The Brazilian real has steadied in the aftermath of the recent presidential elections, but Brazil’s debt problems are still threatening the currency.
Reuters adds Singapore dollar trading to D-3000
SINGAPORE -- Information and technology firm Reuters last week launched Singapore dollar forwards trading on its Dealing 3000 platform.
Reuters adds Singapore dollar trading to D-3000
SINGAPORE -- Information and technology firm Reuters last week launched Singapore dollar forwards trading on its Dealing 3000 platform.
Rate cut turns market anti-dollar
NEW YORK -- The US dollar hit three-month lows against several major currencies last week, triggering a welcome return of volatility to the markets after months of range trading.
That sinking feeling
Policy flexibility and high productivity have supported the dollar, but they aren’t enough to turn the tide of weak growth and negative technical signals, says Francesca Fornasari.
Germany: the eurozone laggard
There are several positive influences on the euro, but the German economy is holding the currency back, says Nick Bennenbroek, international economist at Brown Brothers Harriman in New York
BIS: e-FX may impact liquidity, volatility
BASLE -- Market participants fear the rise of electronic trading may adversely impact liquidity and volatility in the FX markets, according to the Bank for International Settlements (BIS).
Short-term divergence
Traders seeking to exploit medium-term misalignments in FX rates should take a close look at euro/Norwegian krone and dollar/Swiss franc trends, says Aziz McMahon, FX strategist at ABN Amro in London
Reliant on foreign inflows
Stock markets may be falling, but foreign investors are still buying US equities, says Michael Woolfolk, currency strategist and head of North America research at Bank of New York
Citigroup defies downturn
Top player’s revenues up again as gap widens between the best and the rest
Sterling: the big-picture view
The UK economy is looking increasingly like Cinderella among the ugly sisters of Japan, Europe and the US, says David Bloom, currency strategist at HSBCin London
Barclays bolsters global line-up with 10th new recruit this year
LONDON -- The wholesale expansion of Barclays Capital's forex group continued last week with the hire of a new global head of foreign exchange structuring.
Euro, yen: G3 laggards
As domestic demand in the Eurozone and Japan slumps, the dollar has shrugged off news of a current account deficit, says Richard Grace, senior currency strategist at WestLB
Real hammered as election woes bite
SAO PAULO -- The Brazilian real dropped near to its lowest-ever level last week as political uncertainty continued following the presidential election on October 6.