Opinion
Eurozone undermined by political concerns
Hans Redeker, global head of FX strategy at BNP Paribas in London, points to a return to awareness of political risk in the EU
Multi-hurdle barrier options
Remy Marino, head of structuring, interest rates, currencies and commodities at Calyon in New York, discusses how investors or hedgers can optimise the cost of their barrier strategies by utilising a multi-hurdle barrier option
Dollar recovery under strain
After recent strength the greenback looks vulnerable, according to London-based Lena Komileva, G7 Market Economist at Tullett Prebon
‘One size fits all’ is not appropriate
Sabrina Jacobs, FX strategist, capital markets, at Dresdner Kleinwort Wasserstein, says Asian currencies need to be looked at on an individual basis
‘FX markets are unreadable’
Foreign exchange markets are notoriously difficult to predict, so corporates shouldn’t bother, argues Simon Miles (right), currency strategist at Corporate FX. Instead they should focus on deciding how to hedge the risk so they can determine its real…
Euro returns to fair value
Stephen Jen, global head of currency research at Morgan Stanley in London, argues that the fall in the euro is more a reflection of the fact that the single unit was overvalued than a reaction to the ‘no’ votes in France and Holland.
Benefiting from yuan revaluation
The Lloyds TSB Financial Markets team suggests how to benefit if the Chinese yuan revalues and Asia follows suit
Skandies set to diverge
The Norwegian krone likely to strengthen against the Swedish krona in the short term, according to Emma Lawson, FX associate at Merrill Lynch in London
How to benefit from a weaker pound
For the currency manager looking to take advantage of fresh sterling weakness, Simon Derrick, head of Bank of New York's currency strategy team, describes a simple, low-cost way for them to express their view
Will sterling lead the USD?
Hans Redeker, global head of FX strategy at BNP Paribas in London, says recent strength in the dollar is likely to be short-lived
No need to shift the Hong Kong dollar peg
Tai Hui (right), economist at Standard Chartered in Hong Kong, presents four reasons why the Hong Kong authorities should not change the HK dollar’s peg to the greenback
More flexibility needed over renminbi rationale
Can USD/RMB rise? Asks Bhanu Baweja, FX strategist at UBS in Singapore
Profiting from a renminbi revaluation
Adam Cole, senior currency strategist at Royal Bank of Canada in London, looks for options strategies to play a China revaluation within a G-10 FX portfolio
No election fears for GBP
The most recent UK election update shows sterling political risks diminishing further, says Adam Cole, senior currency strategist at Royal Bank of Canada in London
Selling £/$ at favourable rates to the forward
UBS Currency Management Advisory Service suggests using a ratio callable forward to sell GBP/USD at more favourable rates than the prevailing market forward rates
Risk appetite and FX positioning
Richard Franulovich, currency analyst for Westpac in New York, says weaker US data is likely to lead to a weaker dollar
Capping downsides, tapping upsides
Jeffery Todd Lins (right), director of quantative analysis, and Peter Ager Hafez, senior research associate, at Saxo Bank, suggest a mechanism to cap the downside risk while allowing for upside potential in the absence of options on a currency fund
A cheaper way to take a bearish stance
Ian Stannard, senior currency strategist at BNP Paribas in London, suggests using an anticipated short-term recovery to significantly reduce the cost of entering a longer-term bearish strategy on USD/JPY
When size matters
Political risk is not a factor sterling has had to contend with recently, but the UK's general election on May 5 might see this change, says Daragh Maher, senior currency strategist at Calyon in London
What is the fate of the greenback?
Corporates need to be aware of the likely fate of the dollar. Simon Miles (below), head of dealing at London-based foreign exchange brokerage CorporateFX, points to economic policies leading to another bubble, and says the authorities need to do more to…
Reasons for rand depreciation
Tania Kotsos, senior emerging markets strategist at RBC, highlights the reasons why the South African rand should weaken over the next 12–18 months
INR – everything is relative
The INR’s over-extended valuation against the Reserve Bank of India’s REER implicit policy anchor continues. This over-extension is looking anomalous against the continued backdrop of Asian FX selling. Claudio Piron, Asian FX strategist at JP Morgan in…
Best execution: not just price, but what else?
Process and practice should both be given serious attention before agreement can be reached on best execution in FX. By Chip Lowry (right), MD, Global Link Europe
Keeping a steady ringgit
Deeds speak stronger than words when it comes to the Malaysian ringgit, says Dominique Dwor-Frecaut, emerging markets strategist at Barclays Capital in Singapore