Trading
Currency derivatives turnover soars ahead
A marked feature of the Bank for International Settlements’ (BIS) latest triennial survey of the global FX markets is the massive surge in derivatives turnover.
US, UK and Australia win in global boom
The main winners in the booming global FX industry are those markets benefiting from control of the lion’s share of forex activity, soaring trade and commodity-related currency business – notably the UK, the US and Australia.
Lack of volatility in US/£ pair
There has been little divergence in views on cable over the last few weeks in the FX Week Currency Forecasts Index, reflecting lack of volatility in the currency pair.
The 'triple-currency wedding cake deposit'
The past year has seen a dramatic surge in the use of FX-linked yield-enhancement products. Generally, these products fall into two categories: dual-currency redemption engineered by the sale of an option; and range-enhanced coupons that contain embedded…
ABN Amro revises forecasts
ABN Amro is among the banks revising currency forecasts in response to an increasingly bearish outlook for the dollar.
Trading volumes surge on rupiah volatility
JAKARTA – Trade volumes in the Indonesian rupiah surged by around 50% when markets reopened following the presidential elections last week.
FX majors unmoved by stronger capex
The capital expenditure recovery is unlikey to shake FX majors from their limited volatility, says Darragh Maher, senior currency strategist at Calyon
Making the most of upcoming volatility
For the currency overlay manager looking to take advantage of a burst of market volatility at the start of the fourth quarter, Simon Derrick, head of Bank of New York's currency strategy team, describes a simple, low-cost way for them to express their…
Late summer lull aids accuracy
The FX markets are experiencing a late-summer lull, as the major currency pairs continue trading in the tight ranges in which they have been stuck for the past few months. That inactivity has fed through to the FX Week Currency Forecasts Index, with very…
Preparing for a break from range trading
Markets have been fairly flat over recent months. How can options traders make the most of this, and how should they prepare for a break from range? By Cornelius Luca, FX Concepts' New York-based head of client advisory for the Americas
Hedge funds to rethink strategy
LONDON – Large numbers of hedge funds drawn to the FX market over the past year are likely to modify trend-driven FX trading, after being stung by heavy losses this year.
FX policy has worked, says RBA
CANBERRA – The Reserve Bank of Australia (RBA) has succeeded in its aim of stabilising the Australian dollar through intervention in the currency markets, it said last week.
Asian currencies bounce back after price hit
HONG KONG – Asian currencies have bounced back after taking a hit from the high price of raw materials, particularly oil, in recent weeks.
Ringgit revaluation looms
A change in the Malaysian ringgit's peg to the dollar is likely, despite the Malaysian authorities' protestations that this will not happen, says David Mann, Standard Chartered's senior FX strategist in London
HSBC launches charting package on FXall
LONDON – HSBC has launched a free online FX charting package on multi-bank portal FXall's website, covering 15 major cross rates. The service, fxcharting@hsbc, is white-labelled from UK-based charting provider TraderMade.
Non-bank players take the lead
Analysts at banks are lagging behind in FX forecasting, according to the Currency Forecasts Index. Trading firms are in both top spots on the year-to-date index, while research firm 4Cast is this week's best three-month forecaster.
Former Soviet satellites' FX interest increasing
ASTANA, KAZAKHSTAN – The FX market for the states surrounding Russia has picked up in recent years due to liberalisation of capital and increasing international trade.
The perils of a presidential election
The forthcoming US race for the White House represents a major risk for the FX markets ahead of voting in November and beyond, says Bilal Hafeez, head of foreign exchange strategy at Deutsche Bank in London
Pound holds up against dollar and euro
Cable has seen significant volatility over the past three months, according to the FX Week Currency Forecasts Index. Sterling peaked at 1.8771 on July 19, with a low of 1.7709 on September 8.
Protecting speculative trade management positions
Some clients will have specific views on the future movements of currencies to which they have exposure. UBS's global FX solutions group shows how barrier strategies can be used to limit risk on these positions
South Africa comes under global focus
JOHANNESBURG – South Africa is currently a focus of activity in the FX world, as global institutions such as the Continuous-Linked Settlement Group (CLS) and spot broker EBS add the region to their sphere of activity.
UBS sees euro at $1.40 in a year
Apart from a brief dip below 1.20 in mid-May, euro/dollar has been bouncing between 1.20 and 1.25 per dollar since the end of February – a period of relative price stability for the pair, which rose a massive 20 big figures in the preceding six months.
How spreads can affect profitability
Spread cost makes a big impact on profitability, says Michael Stumm, co-founder and president of Oanda. Here he shows how to assess just how much different levels of spreads cost
Will payrolls break EUR/USD range?
The market is already shifting its focus to this week's payrolls release, but the case for a range break in euro/dollar from a large positive or negative surprise is not clear cut, says Trevor Dinmore, FX strategist at Deutsche Bank in London