Opinion
Currency is the best global indicator
The strife in Thailand and Hungary this week proves how valuable the FX markets can be in offering an insight to those who want to know what is really happening in seemingly disaster-struck economies.
Politics and the pound
There are parallels between Tony Blair’s current situation and the period around Margaret Thatcher’s demise when the pound crashed out of ERM, write Peter Luxton, global markets adviser, and Stuart Bennett, head of European economics at Informa Global…
Old news set to leave China behind
China’s plans to delay the information flow from foreign news agencies by filtering it through Xinhua news agency is worrying, and it is likely to be counterproductive.
Maintain a long Swiss franc exposure
Todd Elmer, currency strategist at Citigroup in New York, predicts an upturn in Swiss franc fortunes, and advises directional trades on EUR/CHF
Reset strike bonus forwards for a Korean win
David Mann, senior FX strategist, and Michael Image, senior FX structurer at Standard Chartered in Hong Kong, suggest reset strike bonus forwards over plain forwards to hedge Korean won downside risks
Hedging sterling/dollar is best option
Despite GBP/USD rising over 10% so far this year, Ian Stannard, senior currency strategist at BNP Paribas in London, says hedging still makes sense
Are you missing out on a prime opportunity?
Prime brokerage is becoming an increasingly important revenue stream for a number of banks.
Make or break for FX diplomacy
James Malcolm and Mirza Baig, FX stategists for Deutsche Bank in Singapore, look at the prospects for Chinese FX policy in light of a new US Treasury Secretary
Time for a kiwi revival
John Horner, FX strategist for Deutsche Bank in Sydney, points to reasons to be positive on the New Zealand dollar
Anonymity does not always equal profitability
FXall has jumped on the anonymity bandwagon, and the Reuters/CME venture offers another way to access liquidity discretely. But whether these ventures will succeed is debatable.
Building long AUD/NZD positions with less risk
Besa Deda, Sydney-based currency strategist for the Commonwealth Bank of Australia, looks at how to gain long exposure to AUD/NZD amid high volatility
Automating FX – algorithmic trading in foreign exchange
Interest in algorithmic trading in FX is growing. John Bates, vice-president, Apama Products, Progress Software, discusses the advantages, and analyses the latest market innovations
Trading in the firing line holds back banks
The prospect of facing a firing squad for losing some of the bank’s money would certainly concentrate the minds of the more adventurous prop traders.
Many ways to cater for the FX market
As yet another venue looks set to be launched into the foreign exchange market, it remains unclear which model is the most appropriate for the current climate.
The yen – a conflict of interests
Neil Parker, economist at Royal Bank of Scotland in London demystifies the 'black art' of predicting movements in the yen
China hits the right note on free currency
The Chinese authorities are famous for being fiercely independent and reluctant to bend to external pressure. Understandably, they do not like being told how to manage their affairs by outsiders who have their own interests at heart.
Reserve diversification
Simon Derrick, chief currency strategist at the Bank of New York in London, suggests a simple, low-cost method to take advantage of any move by the Chinese authorities to diversify
Loonie in tune with the market
The outlook for the Canadian dollar looks set to be tied to commodity prices and the global economy, says David Watt, senior economist at BMO Capital Markets in Toronto
Watch out for those retail risks
This week sees yet another tale of greed and unscrupulous behaviour, with two Miami residents being fined millions of dollars by the CFTC for foreign exchange fraud.
One answer to the structural versus cyclical debate
Geoff Kendrick, senior currency strategist at Westpac in London, has developed a systematic way to generate alpha from the structural versus cyclical debate
To exchange or not to exchange?
Can the foreign exchange market support an exchange? This is a well-worn question that a great deal of money and a few reputations are hanging on. The Reuters/CME move to establish a centrally cleared exchange that banks and the buy side will participate…
The Chinese way
A lot has happened in China since its accession to the WTO in 2001. Arnie Papp, general manager for Asia-Pacific at Calypso, explains the effect the changes have had on FX in the region
Electronic FX talent must be rewarded
This week sees the e-FX awards handed out to the best and brightest in the industry. I can't give a sneak preview of the winners as they will be revealed on Tuesday and covered in next week's issue. However, I'd like to share some observations that the…
How to position in emerging Asia?
Ben Simpfendorfer, Hong Kong-based Asian strategist for the Royal Bank of Scotland, looks at how to gain exposure to emerging markets amid fears that they will sell off