Trading
Conservative approach to further dollar weakness
A one-year 'leveraged ratchet forward' may help hedgers looking for a conservative strategy who are expecting a lower EUR/USD next year, say Eric Ohayon, European head of FX structuring, and Chris Weiss, FX structurer, at Bank of America in London
EBS signs up more prime banks
LONDON – EBS has signed agreements with nine more institutions enabling them to become prime banks, bringing the total to 16. The new banks on EBS Prime are: ABN Amro, AIG, Bank of America, Bear Stearns, Citigroup, Credit Suisse, UBS, Lehman Brothers and…
Opec turns its back on dollar
BASEL – Opec members have been reducing US dollar exposure in favour of the euro over the past three years, according to statistics released by the Bank for International Settlement (BIS) last week.
Dollar weakening underestimated
A view that the Japanese authorities would intervene to protect the level of the dollar led much of the market to underestimate the extent to which the greenback would weaken against the unit, according to Ray Attrill, director of research at 4Cast. The…
GL Trade acquires Ubitrade
LONDON -- GL Trade, the France-based vendor of trading systems, recently announced the acquisition of Ubitrade, a specialist in derivatives processing.
Dollar/won move boosts options market activity
HONG KONG -- Volumes in the forex options markets have surged off the back of the rapid move in the dollar/won over recent weeks, say analysts.
UK's Hargreaves Lansdown launches onto forex market
BRISTOL -- A leading UK stockbroker and financial advice firm is to launch into the FX market, offering its 500,000 customers access to Saxo Bank's rates.
BTM lead in Japanese forex slipping
TOKYO -- Bank of Tokyo-Mitsubishi (BTM) remains the top Japanese foreign exchange house in the country, with revenues for the first half of the Japanese fiscal year ending September 30 totalling ¥36.1 billion.
Soft knock-in knock-out forward
The soft knock-in knock-out forward presents a new way to look at knock-ins and knock-outs, taking away the negative impact of untimely barrier events says Enrico Ferrante, senior structurer at Calyon in Paris
Swissie sways FX sentiment
While the euro/dollar pair has continued to grab the headlines over the past month for its unpredictability, it is the Swiss franc/greenback pairing that has caused forecasters the most difficulties.
CLS adds four more currencies
HONG KONG -- CLS is to bring four new currency pairs onto its platform: the New Zealand dollar, the South African rand, the Hong Kong dollar and the Korean won.
Dollar to plummet further in 2005
Continued dollar weakness in 2005 will fuel European and Japanese currency strength and damage export demand, according to Tony Norfield, ABN Amro's global head of FX strategy in London
Intervention will not halt dollar weakness
SEOUL – The dollar's dive against Asian currencies to record lows is unlikely to be halted by large-scale intervention, according to analysts.
Will Asia dump the dollar?
The possibility of a dollar collapse must be taken seriously. The US's benign neglect is increasingly untenable, says Tim Clayton, analyst at market analysis firm Investica in London
Euro role grows, says ECB
The euro is increasingly being used as an international currency and its place in the global markets is becoming ever more important, a European Central Bank (ECB) official told delegates at the FX Week congress in London last week.
Forex liquidity crisis looms
LONDON – Top banks UBS, Deutsche Bank and Barclays Capital warned of a potential liquidity crisis in foreign exchange at the FX Week 2004 Congress in London last week.
Congress clips
The continuous-linked settlement (CLS) service for settling foreign exchange trades announced the launch date for the next group of currencies to join the service.
Size of dollar fall surprises
With a swing of more than 9% in the euro/dollar pair in the month to November 22, banks underestimated the size of the dollar's fall across the board. But BNP Paribas, which ranked top for the one-month forecasts this week, picked up on the dollar's…
Dynamic hedging strategies in Turkish lira
Emerging markets options offer the benefit of extreme differences in implied volatility and interest rate differentials. Here, James Davison, FX derivatives marketer at ABN Amro in London, outlines how corporate clients can see the benefits investors…
Trends are the way forward
Jessica James, director of the risk advisory group at Citigroup in London, extolled the virtues of trend and carry strategies for FX trading at the FX Week Congress in London last week.
Forex appeal set to continue
Foreign exchange is likely to continue to appeal to investors as an asset class, as a result of its liquid and transparent markets and the trading opportunities it offers, said Daniel Szor, managing director of currency firm FX Concepts in Paris.
CME expects prop trading growth
The changing shape of the FX market and of the world economy will lead to significant changes in the way foreign exchange is traded.
China eases capital outflow restrictions
HONG KONG – authorities have taken further steps that should allow greater flows in foreign exchange trading over the coming months.