FX Markets - Vol 15 No 45
Articles in this issue
FX – the odd man out
The currency market is decoupling from other markets. This is not sustainable, says David Woo, head of FX strategy at Barclays Capital in London
The American-style participating forward
Clients wishing to trade at a pre-specified strike rate during a certain window period, should consider the American-style participating forward, say Bank of America options specialists Jim Kamphoefner in San Francisco and Ravi Chopra in Singapore
Indian bank takes Reuters to process growing FX volumes
MUMBAI – India's Kotak Mahindra Bank has installed Reuters' Trade Processing system at its head-office in Mumbai to manage growing volumes of currency swaps, bullion trades, interest rate swaps, FX option and structured products trading.
Bond investors take up currency overlay
LONDON – Currency overlay, which is commonly used by equity investors to manage currency risk and return on their portfolios, is now catching on with bond managers.
Banks review yuan reval forecasts
BEIJING – Some bank analysts have brought forward their expectations of regime change in the Chinese yuan, following the rate hike by the People's Bank of China late last month.
Trading platforms break records
LONDON – FX trading platforms withstood a massive spike in trading on November 5, as record volumes followed the announcement of better-than-expected US jobs data.
Commerz braces for cuts
SINGAPORE – Commerzbank's integration of its investment banking and capital markets units is likely to force some FX job cuts, said a source close to the bank in Singapore.
Non-US airlines profit from low-flying dollar
NEW YORK – The weak dollar is giving airlines outside the US some relief from the impact of high fuel costs, according to their latest financial results.
Concerted intervention ruled out
FRANKFURT – Despite increasingly vigorous comments from European politicians arguing in favour of stemming the onward rise of the euro, concerted intervention from Europe and the US is extremely unlikely.
Merrill man takes on NAB's troubled FX group in Sydney
SYDNEY – National Australia Bank has hired Jeff Lee to take on the management of its troubled FX business in Sydney.
Bayer Group's two-year plan pays off
LEVERKUSEN – As the dollar continues its slide versus all major currencies – it has lost 8% of its value against the euro in the past two months and 9% against the Swiss franc – corporates are struggling to readjust their hedging strategies.
Sea-change in EUR/USD views
The lifetime high in euro/dollar last week – breaking through 1.30 briefly on Wednesday (November 10) – has prompted most contributors on the FX Week Currency Forecasts Index to revise their euro/dollar forecasts upwards.
BoA loses French corp sales dealer
LONDON – Olivier Brouet has left Bank of America (BoA) in London, where he worked in FX sales to French corporates, reporting to Kai Fisher, head of European FX corporate sales. A bank official said Brouet has not been replaced but declined to comment…
Lehman to offer onshore forex derivatives in Korea
SEOUL – Lehman Brothers has transferred JS Kim, a senior vice-president in fixed income from Tokyo to Seoul, in preparation for the launch of its onshore FX and interest rate derivatives business in the country.
