Trading
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
Politics fail to dampen hopes for forint
BUDAPEST – The resignation last month of Hungary's prime minister Peter Medgyessy has not led to the trading opportunities that may have been expected from the country's currency, the forint.
Rankings reveal diversifying inter-dealer market
The inter-dealer market for foreign exchange is shrinking, as an increasing number of mid-tier players retreat from market-making to become clients of the top firms. The banks that remain are working hard to consolidate their positions as liquidity…
EBS to admit funds to Spot
LONDON – Spot broker EBS will allow funds to trade on its EBS Spot platform from next year, it will announce this week.
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
FX volumes up by a third
LONDON – FX trading volumes are up by nearly a third over the past three years, according to new research from UK consultancy ClientKnowledge.
Calyon picks the dollar recovery
The current broad dollar recovery, which saw euro/dollar dropping three big figures and sterling/dollar sinking by nearly five in just two weeks, has caught out many in the FX market. But Calyon was not at all surprised, explained Mitul Kotecha, global…
Commerce FX storms US retail market
BOSTON – Commerce FX, a subsidiary of Boston-based Commerce Bank & Trust, is reaping the rewards of its entrance into the retail margin trading market last year, an official told FX Week .
PHP trading volumes surge in "fiscal crisis"
MANILA – Traders in Manila are seeing soaring volumes in Philippine peso trading, after the country's president said it was in the midst of a fiscal crisis last week.
Eliminating foreign exchange translation risk
FX translation can mis-represent a company's profit growth on its balance sheet. Cliff Bayne, senior exotics dealer, and Terence Yiu, chief dealer, at ABN Amro in Singapore, explain how to hedge the translation risk at minimal cost
CSAM to add emerging markets to FX management
LONDON – Credit Suisse Asset Management (CSAM) is looking to add emerging market currencies to its suite of forex management services from early next year.
Dollar/yen break-out expected
TOKYO – Technical indicators suggest dollar/yen could be set to break out of the tight trading range it has been trapped in since June. "Resistance is declining and support is rising. We will get a decent break-out trade soon," said Karen Griffith, head…
August trading floors forecasters
August may be providing plenty of opportunities for traders, as sharp moves slice through the seasonally thin markets. But the price volatility is creating havoc for FX forecasters in the unpredictable environment, according to the FX Week Currency…
China eases restrictions on capital account
BEIJING – The Chinese government made further steps towards liberalising the capital account last Wednesday by allowing insurance companies to invest 80% of foreign exchange assets overseas.
Is yen decoupling from oil?
The yen's gains against the greenback last week suggest an apparent decoupling from oil says Neil Mellor, currency strategist at Bank of New York in London
Hedging when the market moves against you
A nine month sliding forward structure can help your company achieve attractive FX hedging rates when the market has moved substantially beyond your budget rates, says Adam Gilmour, head of FX options sales in Citigroup's emerging markets sales and…
Return of the voice broker
Cantor Fitzgerald revives voice broking market with spin-off firm. NEW YORK - Cantor Fitzgerald reversed a trend of consolidation in the broking market last week by spinning off a new firm to focus exclusively on voice broking.
Rate differentials bolster peso trading
MEXICO CITY – Speculation on the direction of US interest rates is bolstering already high levels of trading in US dollar/Mexican peso.