Trading
HK’s FX clearing needs improvement – IMF
HONG KONG – Foreign exchange clearing supervision in Hong Kong needs to be improved, according to the International Monetary Fund (IMF). In a report published in late June, the IMF said although payments systems in the Special Administrative Region (SAR)…
Dollar and US stocks decouple
The positive correlation between US stocks and the dollar has seen a turnaround, and this is unlikely to reappear in the near future, says Niels Christensen, senior currency strategist at SG in Paris
Protecting against euro resurgence
A Hong Kong-based firm could use a series of resetting bonus forwards to hedge against a potential euro rebound, say Charlie Brown, head of structuring at Standard Chartered Bank in London, and Mike Image, structurer for North-east Asia global FX options
EBS makes spot sterling drive
LONDON – Spot broker EBS last week made a bid for market-share in the sterling market – the acknowledged gap in its coverage of major currencies.
Rupee options launch today
MUMBAI – Banks in India can start trading rupee/foreign currency options today, following the lifting of restrictions from the Reserve Bank of India (RBI).
Cause and FX
Corporate hedging practices have become a focal point for equity investors, as companies look beyond traditional risks. Alex Patelis, senior G-10 FX strategist at Merrill Lynch in London, highlights the risks to balance sheets from capital losses on…
Hedging solution for Canadian exporters
A series of Canadian dollar calls could be the solution to Canadian exporters’ concerns about the direction of US dollar/Canadian dollar, says Shaun Osborne chief currency strategist at Scotia Capital in Toronto
Brazilian real rally set to come to an end
SAO PAULO -- The Brazilian real strengthened after the US Federal Reserve’s decision to cut interest rates on Wednesday (June 25), but was back on the defensive over Brazil’s debt and is likely to remain on the back foot.
Multi-choice options for eurozone exporters
The multi-choice strategy forward option can offer flexibility to a euro-denominated exporting company looking to hedge its long-term dollar exposures, says Roman Stauss, head of FX product development at Commerzbank Securities in London
Is the dollar bouncing back?
The US dollar may have been mired in decline in recent months, but a recovery could be on the cards sooner than expected, says Tony Norfield, global head of FX strategy at ABN Amro in London
Politics mars eastern European FX process
BUDAPEST -- Political interference in Hungary’s monetary policy decisions could ultimately damage regional currencies and derail the accession process to the eurozone, analysts told FX Week .
No change likely for ringgit/dollar peg
KUALA LUMPAR -- The Malaysian ringgit’s (MYR) peg to the US dollar is likely to remain in place, analysts in Asia told FX Week , despite mounting speculation last week that it may be relaxed ahead of Malaysian prime minister Mahathir Mohamad’s retirement…
Investors boost forex fund returns
NEW YORK -- Market trends and a surge in interest from investors is creating a bumper year for investment managers specialising in FX.
Top three make biggest gains
LONDON -- FX traders are used to hearing about the growing dominance of the top five or 10 banks in foreign exchange. But according to FX Week ’s exclusive yearly round-up of banks’ forex revenues, the process of consolidation is accelerating much more…
Top three make biggest gains
LONDON -- FX traders are used to hearing about the growing dominance of the top five or 10 banks in foreign exchange. But according to FX Week ’s exclusive yearly round-up of banks’ forex revenues, the process of consolidation is accelerating much more…
Euro pauses for breath as risk appetite wanes
LONDON -- FX traders had a chance to regroup last week following months of volatile dollar declines and new highs for the euro.
UK top tier to survive euro
LONDON -- The UK government outlined its view on euro entry last week, but the potential death of the sterling market would be unlikely to dent the top UK banks in FX.
Cheap volatility brings yen opportunities
Japanese economic growth has outstripped many western economies over the past year, and the next currency breakout in the FX markets could be yen strength. Alex Schumann and Trevor Nathan, of Commonwealth Bank of Australia in Sydney, show how investors…
New Europe's FX trials
The convergence process of accession countries has been put into question. Currencies of those countries, and the Hungarian forint in particular, are likely to continue to be under pressure, say Mehmet Simsek (right) and Yianos Kontopoulos, FX…
Analysts play down yuan revaluation talk
SHANGHAI -- Despite speculation that China may revalue its yuan currency, analysts polled by FX Week said an imminent change in the currency's peg is unlikely.