Trading
US banks benefit from dollar upswing
NEW YORK – April saw stateside banks benefiting from a greenback revival, with profits surging in the first quarter.
No votes lead to euro volatility
LONDON – The ‘no’ votes on the EU constitution referendums in France and the Netherlands led to unexpected volatility in the currency markets at the start of the month, with the highest volumes ever seen on some platforms.
Hong Kong limits speculative trading
HONG KONG – May saw speculation about the shift in the renminbi peg affect the policy of neighbouring economies.
Commodity currencies are set to sparkle in 2006, says Trevor Williams, chief economist at Lloyds TSB Financial Markets in London
Go for the currencies with the commodities
Terrorist attacks hit e-trading
LONDON – The July 7 terrorist attacks in London caused widespread disruption to electronic trading, with spreads widening considerably and at least one bank not delivering prices to a portal.
Preparing for Korean won under-performance in 2006
Standard Chartered’s economics and FX strategy team suggest ways to position for a weaker Korean won in 2006
Canadian dollar hits new heights
OTTAWA – Almost four years after it hit an all-time low, the Canadian dollar (loonie) is riding on the crest of a wave after reaching its highest level in years.
Enigma – a cracking good model
Pete Eggleston, head of quant solutions at the Royal Bank of Scotland, financial markets, in London, discusses systematic trading of FX implied volatility using the 'Enigma' model
Thinking outside the US dollar
Marios Maratheftis, FX strategist at Standard Chartered in London, sees an end to the dollar's rally, and describes how high yielders together with Asian and African currencies are offering exciting opportunities
Yen reverses weakening trend
The yen staged a comeback last week, reversing a trend of weakness against the greenback seen since June, when dollar/yen hit 108.17.
Dollar strength hits accuracy
Wide-of-the-mark forecasts mean the three- and twelve-month rankings have seen more and more inaccuracy in recent weeks, with an average divergence this week of 6.39 and 12.4, respectively.
Turkish lira joining mainstream
ANKARA – Just a few years ago the Turkish Lira (TRY) was seen as a unit on the risky side of the emerging market spectrum, but the market is now taking it seriously.
The FX implications of the gold-oil ratio
In a week that has seen gold hit a 24-year high, more attention is being paid to the inter-relationship between prices of fuel and metals, specifically oil and gold, says Ashraf Laidi, chief currency analyst at MG Financial in New York
Emerging markets options go online
LONDON – Banks are building up online capabilities for emerging market currency options as the market for the products continues to expand.
Going global
In the first of a series, FX Week looks at the big hitters in the industry. First is HSBC, which knocked Citi off the number three spot in last month's Best Banks Awards
Slovakia hits the euro road
Slovakia looks set to be the next country to join the euro, but political uncertainty caused by forthcoming elections means there are still likely to be opportunities for those seeking to trade the koruna
Hedging profits effectively
Daniela Asikian, Senior Structurer At Hsbc In London, Shows How Companies Can Hedge Exposure From Overseas Profits Taking Advantage Of Current Forwards Rates
Dollar to keep rising, says Rabobank
Rabobank has maintained its position at the summit of the year-to-date one-month index largely thanks to its bullish view on the dollar.
A change in balance
The market has bought the interest rate argument – and the dollar – in 2005. With the end of HIA related repatriation, the balance will change in the new year, writes Chris Furness, senior market strategist at 4Cast in London
India looks to tourism
LONDON – India is looking to make tourism the number one source of foreign exchange in the next three years, by doubling its forex earnings, according to tourism minister, Renuka Chowdhury.
Citigroup launches flow-weighted currency indexes
LONDON & NEW YORK – Citigroup has launched 10 indexes that measure currencies' value using customer flow data.
Improved outlook for krona
The outlook for the Swedish krona has improved, but the impact will be felt in the crosses, where a topping pattern is developing, says Meg Browne, senior currency strategist at Brown Brothers Harriman in New York
Invest in a carry basket EMTN
Christine Lefort, global head of FX Structuring at Calyon in Paris, suggests a way to extract returns from FX-linked investments in a time of low rate differentials