Opinion
Look to NZ for opportunities
Geoff Kendrick, currency strategist at Westpac, is focusing on the New Zealand dollar (NZD) this week
Waiting for a won u-turn
After the recent declaration that the Bank of Korea intends to employ a policy of currency diversification in its reserve holdings, the won performed strongly. Here, Bhanu Baweja, FX strategist at UBS in Singapore, looks at what could trigger a u-turn
Cutting the cost of dollar calls
With the USD having hit its lowest levels since the first half of January, Steven Englander, chief FX strategist for the Americas at Barclays Capital, suggests a cost-effective way to position for a dollar rebound
Making the most of fresh yen strength
A fresh bout of yen strength may be imminent. Simon Derrick, head of Bank of New York’s currency strategy team, describes a simple, low-cost strategy for currency overlay managers looking to take advantage of the latest moves
Dollar rebound won’t last
Less support for US currency as year goes on, says Jeff Young, head of FX strategy at Citigroup in New York
AUD/USD hedge for an uncertain outlook
With an uncertain short-term prognosis for the AUD/USD, Sara Sullivan, senior manager, financial engineering at ANZ Bank in London, explains a structure that offers downside protection against a stronger Aussie while allowing unlimited upside potential…
Expect nasty surprises
Michael Klawitter, senior currency strategist for West LB, believes the US current account deficit will remain a problem
More options for hedge funds
Options give hedge fund managers a tool to manage spot currency trades outside of leaving simple orders in the market. Jeff Cooper (right), vice-president responsible for sales and structuring of FX options at Bank of Montreal in Toronto, explores this…
Aussie momentum wanes
The Aussie will face considerable pressure around the 0.78--0.80 region, says Tim Fox, chief economist at National Australia Bank in LondonThe Australian dollar has been in strong demand since the first week of the New Year, bucking an otherwise strong…
The unitised managed assets solution
Packaging FX into a fund that retail investors can get easy access to is not straightforward, say Jan Vandendriessche, director, managed assets development, and Stephan Martinussen, senior manager, sales trading at Saxo Bank. They advocate setting up a…
Rough ride ahead for Asian FX
Asia FX is heading for a volatile course in the coming fortnight, with poor economic data and continuing uncertainty about renminbi revaluation, according to Claudio Piron, Asian FX strategist at JP Morgan in Singapore
Dollar weakness set to continue
Jim McCormick, global head of FX research at Lehman Brothers in London, sees short-term technical gains, but continued longer-term dollar weakness
Kissing with confidence is key to FX
Keep it structurally simple (Kiss), says Evan Steed, director FX options trading and sales TD Bank Financial Group. This truism is especially appropriate as the greenback faces an uncertain future and regulatory change comes to Canada
The greenback/HK dollar digital deposit
Hong Kong dollar interest rates remain suppressed. Michael Image, FX structurer for Northeast Asia at Standard Chartered shows a way for HK$ depositors to achieve higher interest rates by taking advantage of the fact that US$/HK$ forwards are trading at…
Speculative $/¥ selling discouraged
Ian Stannard, senior currency strategist at BNP Paribas in London, favours selling USD/JPY gains amid mounting political pressure
Intervention going out of fashion
Paul Meggyesi, vice-president, global currency strategist at JP Morgan Chase, points to a decreasing willingness for Asian central banks to intervene as a reason to expect further dollar weakening
Towards risk-free emerging markets investment
Pete Eggleston, head of quantative solutions at Royal Bank of Scotland (RBS), outlines a way of benefiting from the high yields associated with emerging market investing while controlling the inherent risk
Introducing FX into fixed-income portfolios
David Durrant, chief currency strategist for the Americas at Julius Baer Asset Management, says a simple use of cross trades exploiting different central banks’ positions in the economic cycle shows that it is not necessary to use exotic structures
Cable – getting nervous about $2?
Karen Griffith, chief currency analyst at Independent II Research, says technical and fundamental indicators point to sterling well above the $2 mark
Dollar weakening, but for how long?
Dollar weakness will continue into the first quarter of 2005 under current US policies, says Marios Maratheftis, economist at Standard Chartered Bank in London. But market volatility may change the Fed's stance
The American double-accrual forward
With expected further euro appreciation, EUR/USD forwards are trading at a premium. Here, Anna Leung, head of corporate treasury marketing at HSBC, shows a way to get access to future hedging at a lower cost
Dollar recovery set to continue
Dollar recovery is likely to continue this week as short-covering and profit-taking extend further, according to Mitul Kotecha, global head of FX research at Calyon, London
Conservative approach to further dollar weakness
A one-year 'leveraged ratchet forward' may help hedgers looking for a conservative strategy who are expecting a lower EUR/USD next year, say Eric Ohayon, European head of FX structuring, and Chris Weiss, FX structurer, at Bank of America in London
Soft knock-in knock-out forward
The soft knock-in knock-out forward presents a new way to look at knock-ins and knock-outs, taking away the negative impact of untimely barrier events says Enrico Ferrante, senior structurer at Calyon in Paris