Trading
Greenback sell-off fails to materialise
Bank of Montreal's (BMo) prediction for a big sell-off of the US dollar in 2006 has failed to materialise, said Jeff Cooper, BMo's vice-president of forex.
FX volume to exceed $3 trillion by 2007: TowerGroup research
NEEDHAM, MASSACHUSETTS – Global FX daily average volumes will reach $3.6 trillion by 2007, according to research released last week.
Flextrade to launch block trading platform
NEW YORK – Trading technology vendor Flextrade plans to launch the first block FX trading platform for the sell-side and buy-side next month, FX Week has learned.
Decoupling is key to Asian strength
Stephen Jen, head of currency research for Morgan Stanley, and Charles St-Arnaud, acting Asian currency strategist in London, say Asian currencies will strengthen once Asia decouples from the US
Missing links in Korea and Taiwan
Mirza Baig and James Malcolm, FX researchers at Deutsche Bank in Singapore, examine the relationship between the Korean won’s surplus and changes in the Taiwanese dollar
Diverging data muddies forecasts
Danske Bank’s chief strategist Teis Knuthsen, said the technical and fundamental models the bank integrates to forecast FX has recently turned up opposing data.
Black clouds over the greenback
David Woo, head of global FX strategy at Barclays Capital in London, looks at the threats to the US dollar from Chinese trade and a weak housing market
FXCM’s sentiment index pays off
Online trading firm FXCM has emerged in the top five for the 12-month year-to-date index by paying more credence to sentiment, volatilities and converging interest rates.
Bank of America adds to ETS
Bank of America is enhancing its suite of e-trading capabilities to include live options execution, improved pricing and risk management among other new features.
IB&T stays bullish on greenback
Investors Bank & Trust (IB&T) continues to go against consensus view by maintaining a bullish stance on the dollar. Market expectations for a decline in the dollar have been fuelled by further weak data from the US.
e-Mid opens to Turkey
ISTANBUL – Interbank deposit market e-Mid is to open to Turkish banks, in a bid to drive revenues and access more liquidity from this rapidly developing market.
Politics and the pound
There are parallels between Tony Blair’s current situation and the period around Margaret Thatcher’s demise when the pound crashed out of ERM, write Peter Luxton, global markets adviser, and Stuart Bennett, head of European economics at Informa Global…
First OTC rouble basket deal
LONDON – Interdealer broker GFI has completed the first interbank over-the-counter rouble basket trade. The six-month trade has a notional value of $100 million, with an at-the-money forward strike price of 29.70. The weighted ratio was 60% dollar, 40%…
A capital adventure
Michael Spencer tells FX Week about how he turned Icap from a four-man business into a £3 billion FTSE 100-listed powerhouse in 20 years, and about his plans for EBS
Maintain a long Swiss franc exposure
Todd Elmer, currency strategist at Citigroup in New York, predicts an upturn in Swiss franc fortunes, and advises directional trades on EUR/CHF
Westpac benefits from dollar resilience
Westpac is joint top of the one-month rankings because it ‘held the line on the dollar in the summer months’.
Reset strike bonus forwards for a Korean win
David Mann, senior FX strategist, and Michael Image, senior FX structurer at Standard Chartered in Hong Kong, suggest reset strike bonus forwards over plain forwards to hedge Korean won downside risks
Strategists in demand
GLOBAL – Forex strategists are en vogue this month, with a number of hires at major banks in the US and Europe.
An eye for changing drivers aids Calyon success
Calyon has held on to top-five rankings in the 12-month and 12-month historical index since mid-July. Mitul Kotecha, global head of foreign exchange research at the French bank in London, pointed to three factors underpinning its success.
Reuters’ system failure disrupts FX trading
ASIA – Reuters suffered a temporary systems failure in its currency matching system Reuters Dealing 3000 Matching Host, causing disruption to trading in Asian hours last Friday. The outage acted as a firm reminder of the competitive landscape for…
Reuters’ system failure disrupts FX trading
ASIA – Reuters suffered a temporary systems failure in its currency matching system Reuters Dealing 3000 Matching Host, causing disruption to trading in Asian hours last Friday. The outage acted as a firm reminder of the competitive landscape for…
Hedging sterling/dollar is best option
Despite GBP/USD rising over 10% so far this year, Ian Stannard, senior currency strategist at BNP Paribas in London, says hedging still makes sense
Make or break for FX diplomacy
James Malcolm and Mirza Baig, FX stategists for Deutsche Bank in Singapore, look at the prospects for Chinese FX policy in light of a new US Treasury Secretary
Standard Chartered adds fair-value model for yen
TOKYO – Standard Chartered last week introduced a fair-value model for the yen to take into account the growing interest in the Japanese currency.