Trading
Dollar bears' hopes realised
The dollar bears on the FX Week Currency Forecasts Index saw their wishes fulfilled last week, as euro/dollar finally broke through the upper limit of 1.26 denied it since mid-February. But the euro's rise caught some forecasters off-guard, as they had…
Prime brokerage best for individual investors
Individuals who want to trade FX may find a prime broker will promote confidentiality, cut out settlement difficulties and help resolve credit issues, says Peter Wakefield, MD of research and product development at Record Currency Management in the UK
Rupee trading set to double, say local traders
MUMBAI – Daily trading volume in the Indian rupee could double by the end of the year to $300 billion. Despite the potentially negative impact of the current high price of oil – India being a net crude oil importer – local market participants are…
US dollar's central role
The dollar is likely to have a large role to play in the adjustment of the US economy, whether it is suited to it or not, writes Alan Ruskin, research director at New York-based analysis firm 4Cast
Q3 hits earnings but Q4 sees pick-up
NEW YORK – All major US commercial banks have now reported their third-quarter results, confirming poor trading conditions have hit returns for FX.
Chinese currency to rise by 25% against dollar
LONDON – China's currency is up to one quarter below its true value and a significant adjustment on the forex market is inevitable.
Reuters to build Chinese FX platform
SHANGHAI – The China Foreign Exchange Trade System (CFETS), a subsidiary of the People's Bank of China, has signed up Reuters to develop a global foreign exchange trading system for it and its member banks.
Dollar to continue its slide next year
Michael Klawitter, senior currency strategist at WestLB Global Financial Markets in Düsseldorf, sees the euro continuing its appreciation against the dollar next year
Reuters outage spells pricing void
LONDON - The pitfalls of relying on electronic systems was made clear to FX traders last week, as a power outage at Reuters' technical centre left them without pricing in European currencies for seven hours. The outage, which began at 2.34pm in London (9…
US banks hit by flat trading
New York – Poor market conditions have led to a sharp fall-off in FX revenues for some US banks, but others managed to post increased returns in the third quarter.
Hedging Chinese renminbi revaluation
To boost returns on the event of Chinese renminbi revaluation, trading on the recently launched Bloomberg-JPMorgan Asian Currency Index (ADXY) is the best solution, says Erik Herzfeld, head of regional options trading at JP Morgan in Singapore, and…
SIBOS 2004
CLS rules the roost at Sibos
Indian forex settlement service joins CLS
MUMBAI – Indian FX settlement service the Clearing Corporation of India (CCIL) will go live on CLS on October 23.
US banks hit by flat trading
New York – Poor market conditions have led to a sharp fall-off in FX revenues for some US banks, but others managed to post increased returns in the third quarter.
Yield enhancement for European investors
Polish investors anticipating zloty strength over the coming year should consider a 'zloty bull note' to provide higher returns than a one-year deposit, says Andy Kaufmann, head of FX structured products for Europe, the Middle East and Africa at Merrill…
Special Feature - CLS settlement: the next two years
As CLS enters its third year, Joseph De Feo discusses plans for expansion Two years ago, the CLS Group launched the world's first global settlement service for foreign exchange trades. Following several other aborted efforts to tackle Herstatt, or…
Are consensus forecasts useful?
Analysts differ over the tools they use to put together their currency forecasts. Some rely on macro fundamentals, economic data forecasts or flow data, while others rely purely on technical indicators.
GFI launches new FX option data service
NEW YORK – Broker and market data firm GFI Group has launched a new currency options historical data service for quantitative experts, risk managers and middle-office employees at banks active in the FX markets.
SARB to cut before year-end?
Royal Bank of Canada expects a 50bp rate cut in South Africa to 7.00 before the end of the year, explains Tania Kotsos, senior emerging markets strategist at the bank in London
EBS gets foothold in China
SHANGHAI – Spot broker EBS has signed up Bank of Montreal as the first bank in mainland China to use EBS Spot, its spot broking platform. Through the agreement, Bank of Montreal (BMo) will be able to trade spot FX from its offices in Beijing, Guangzhou…
BIS paints bright future for FX
BASEL – The huge growth in daily turnover in the global foreign exchange market, revealed in the Bank for International Settlements’ (BIS) triennial FX survey last week, has painted a bright future ahead for forex market participants.
Oil woes hit yen
Neil Mellor, London-based analyst at Bank of New York points to the weakness of the Japanese market in the wake of high oil prices
NDFs for a company with operations in China
Clients based in one country with manufacturing bases in another are exposed to risk if the country of production’s currency appreciates. Here, Ashish Advani, director, risk solutions at Travelex in London, proposes a solution that hedges the risk using…