Trading
RBS leading UK FX race
LONDON -- Royal Bank of Scotland (RBS) reported a 24% increase in foreign exchange revenues for 2003, the largest year-on-year rise among UK banks reporting their results last week.
Reflationary effects on dollar/yen
Strong cross-border portfolio inflows into Japan are unlikely to falter. Consider either Seagull or reverse knock-in option strategies to protect against further yen strength, say State Street Global Markets’ currency options and currency strategy teams
Market to test central banks post-G7
LONDON -- The G7 communiqué released after the Boca Raton meeting on February 7 will lead to the market testing the resolve of central banks to limit FX moves, analysts agreed last week.
Ex-MMS team sets up new analysis firm
NEW YORK -- Three managers from the former MMS International, the currency analysis firm bought by publishing group Informa, have set up a new real-time technical analysis service for spot FX.
Time for Asia to flex FX
A week after the Boca Raton G7 communiqué, and the market is flexing its capital muscle, prompting a broad appreciation of Asian currencies, writes Claudio Piron, head of FX strategy at Standard Chartered Bank in Singapore
Accrual strategy counters euro/dollar vol
The next phase of dollar weakness is unlikely to be as monotonous as the previous one. Dollar sellers should therefore use an accrual strategy to exploit market volatility, says Bart Wong, senior FX structurer at Barclays Capital in London
End of the line for euro/dollar ascent?
The market may push euro/dollar higher to challenge the European Central Bank’s resolve, but economic fundamentals are stacking up against the euro, says Stephen Jen, currency economist at Morgan Stanley in London
Sterling -- a call for calm
The market has got so excited about sterling it has failed to recognise underlying economic problems in the UK. These problems will see sterling disappoint many in 2004, say David Bloom (left) and Mark Austin, currency strategists at HSBC in London
Rand-weakening options running dry
LONDON -- The recent weakening of the South African rand, which dropped from 6.3128 on January 5 to 7.0649 on January 30, may be hard to sustain, as the authorities run out of options to force the currency lower, analysts warned last week.
How to ride out the rising Aussie
The stellar rise of the Aussie doesn’t have to be bad news for Australian exporters. Wes Price, of ANZ Bank’s consultative risk management group in Melbourne, explains why
More banks put money on research
LONDON -- ABN Amro and Barclays Capital are among the increasing number of banks putting money on their trade recommendations for FX. Both have allocated money to start trading on model portfolios this year, joining CSFB, Citigroup and JP Morgan Chase as…
Firms race for North American retail investors
NEW YORK -- Trading firms and exchanges are building FX products targeting the retail market, as retail investor interest in foreign exchange soars in North America.
EBS set to cut delays with direct data feed
LONDON -- Spot broker EBS will launch a new direct data feed today, February 2, which aims to cut delays in the distribution of its spot prices from third parties such as Bloomberg, Moneyline and Reuters.
G10 trade keeps Citi earnings stable
NEW YORK -- Opportunities in the G10 currencies and efficiency gains from electronic trading helped maintain Citigroup’s strong FX earnings in 2003.
Using currency as an alpha source
The past three years have been disturbing for investors and managers. This investment climate is perfect for engaging in currency strategies to create alpha, say Paul Lambert, head of currency, and Mark Pursey, UK spokesperson at Deutsche Bank Asset…