FX Markets

Forwards spreads fall but won’t hit January levels, say traders

While bid/offers have shrunk since March’s highs, dealers expect them to remain elevated

federal-reserve-bank-new-york
The New York Fed rolled out dollar swap lines to a clutch of central banks in March
  • LinkedIn  
  • Save this article
  • Print this page  

The Federal Reserve’s US dollar swap lines have helped reduce bid/offer spreads in the foreign exchange forwards market that had soared during the volatility in March, but traders believe they will remain elevated above January levels for some time.

When market conditions started to deteriorate at the beginning of March, the head of FX forwards at one US dealer says that spreads “massively increased” – in particular, dollar/yen forwards spreads were said to be almost 20 times wider than usual

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

Copyright Infopro Digital Limited. All rights reserved.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

Copyright Infopro Digital Limited. All rights reserved.

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

To continue reading...

More on Trading

Follow Topics

Most read

  1. Algo sniffers make a tough business tougher
  2. How big data has changed dealing for good
  3. Dealers back CLS plans for EM settlement system
  4. The ongoing electronification of FX in Asia
  5. Currenex class action faces hurdles, say legal experts

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: