Emerging markets
Why the Q1 risk rally was a glass half empty
Following a risk rally in foreign exchange markets during the first quarter, several of the positive drivers of that rally have now dissipated. Looking ahead to the rest of the year, Callum Henderson explains why investors should continue to short…
Investors flock to the Mexican peso
Following significant appreciation of the Mexican peso during the first quarter of 2012, the currency has become a favourite emerging market bet for investors, and market participants believe it will stay that way. Melanie White reports
Economic recovery on track but risks remain, warns IMF
Global growth should rise from 3.5% to 4.1% next year, although capital flows into emerging markets give some cause for concern, according to a senior IMF official
City’s top brass throws weight behind London RMB initiative
London will become the next offshore centre for RMB trading, vows UK chancellor George Osborne, supported by banking chiefs from Bank of China, Barclays, Deutsche Bank, HSBC and Standard Chartered
Veteran EM trader exits RBS for the buy side
Eric Lieberson has left Royal Bank of Scotland after 17 years, to join Civic Capital, a New York-based advisory firm set to launch a hedge fund later this year
A spot of bother
Traders exploiting the spread between CNH deliverable forwards and CNY NDFs got a nasty surprise in September last year, when the basis trade blew up amid a reversal of the spread. Georgina Lee looks at what investors can learn from this turn of events
Frontier currencies gain traction with investors
FX strategists and currency managers report growing interest in frontier currencies such as the Kenyan shilling, Ugandan shilling and Nigerian naira
Weighing up the rupee
The growth of the Indian economy and the appreciation of the rupee in early 2012 have made the currency an attractive focus for forex investors, but strategists remain divided on the currency’s potential to rally further this year
Currency risk in Africa more perceived than real, says fund manager
Speaking at this week's African Investment Summit in London, Els Boerhof said diversification and a longer time horizon can reduce hedging costs
FX market looks to Brazil for LatAm returns
Brazil is a key area of focus for FX banks and interdealer brokers this year, despite the erratic behaviour of the Brazilian real towards the end of 2011 and the challenges arising from the currency’s non-convertibility. Melanie White reports
FX Invest Europe: Investors cautious on prospects for renminbi
Currency managers express a preference for alternative emerging market currencies to Chinese renminbi
FX Invest Europe: Developed market currencies still important despite EM buzz
The recovery of major economies will be crucial to the profitability of FX markets, despite the greater returns to be generated from emerging market currencies, according to conference speakers
Buy the Indian rupee, says State Street Global Advisors
Having been bearish on the rupee for several years, the firm's head of currency management has become more positive in recent months, and now rates the currency as a top EM bet
Exploit relative-value opportunities in EM currencies, says Investec
Turkish lira versus the Israeli shekel is a favourite relative-value play for Thanos Papasavvas, fixed-income and currency strategist at Investec Asset Management
UK banks ramp up RMB resources in London
Both RBS and HSBC have made senior appointments to prepare for the growth of renminbi in London. The new business heads talk to Chiara Albanese about their priorities
Yield makes a comeback
Two months into 2012, Mitul Kotecha assesses the modest healing process that appears to have taken hold in currency markets after a period of marked risk aversion, and explains why yield is becoming a key factor influencing investor appetite
LTRO has jump-started currency investors out of risk aversion, says Pimco
Currency investors appear to have moved away from risk aversion and become more interested in high-yielding EM currencies as a result of the ECB’s refinancing operation, according to Pimco’s head of FX
Bric currencies dependent on Chinese policy on renminbi, says L&G strategist
Brazil, Russia and India see China as their main competitor and will wait until the country allows appreciation of the yuan before they follow suit
Growth of ruble spot market depends on settlement issues, say brokers
Average daily volume in the ruble spot market is estimated to be around $20 billion, but participants say it could grow by four times if institutions embrace real-time gross settlement and the ruble becomes a CLS currency
Offshore RMB remains a challenge for corporates
UK chancellor George Osborne is pushing hard for London to become the next financial centre for the trading of renminbi, but despite the blaze of publicity surrounding his visit to Asia this week, some corporates remain daunted by the new currency…
Wiedmann departs Credit Suisse as FX merges with EM fixed income
Merged unit, known as global currencies and emerging markets, will be established on January 1 under the leadership of Chris Corson and Todd Sandoz
Strategic currency hedging in emerging markets
When hedging currency markets, one should treat developed and emerging markets separately, as their behaviour can vary significantly, argues Edward Murray
FX Week Europe: Full coverage
FX Week presents full coverage of the FX Week Europe event on December 1, including two keynote addresses, five panel discussions and the Best Banks Awards
FX Week Europe: Investors warned to be prudent on EM currencies
Senior strategists and currency managers warn emerging market currencies are no panacea to the troubles in the eurozone