Trading
Risk appetite and FX positioning
Richard Franulovich, currency analyst for Westpac in New York, says weaker US data is likely to lead to a weaker dollar
US banks' FX profits surge
NEW YORK – US banks have benefited from the recent recovery in the greenback, with profits up in the first quarter.
Capping downsides, tapping upsides
Jeffery Todd Lins (right), director of quantative analysis, and Peter Ager Hafez, senior research associate, at Saxo Bank, suggest a mechanism to cap the downside risk while allowing for upside potential in the absence of options on a currency fund
Diverging views over renminbi
BEIJING – Banks have divergent views on the likely size, extent and timing of a revaluation of the Chinese renminbi (CNY).
India becomes latest CLS addition
MUMBAI – Indian FX settlement service the Clearing Corporation of India (CCIL) has gone live on CLS.
Activity set to soar in Romanian leu
BUCHAREST – Interest in trading the Romanian leu is picking up, as the country opens to foreign investment and gears up for entry into the European Union.
GFI expands Fenics with bank volatilities
NEW YORK – Interdealer broker GFI is expanding the coverage of its Fenics pricing and risk tool to include volatility surfaces – the methods by which options are priced – from bank clients.
IFX launches forex fund
LONDON – IFX Capital Management, a division of IFX Markets, will launch the Zenith Currency Fund this week.
Managers turn to options
LONDON – Currency managers are increasingly turning to options to derive returns from implied volatility in the currency markets.
A cheaper way to take a bearish stance
Ian Stannard, senior currency strategist at BNP Paribas in London, suggests using an anticipated short-term recovery to significantly reduce the cost of entering a longer-term bearish strategy on USD/JPY
Mixed reaction to EBS Prime initiative
LONDON – Interbank trading platform EBS' foray into the investor community is being taken up with varying degrees of enthusiasm by member banks.
New investors spur 2004 forex growth
GREENWICH, CONNECTICUT – An increase in FX trade by almost a quarter last year was largely driven by a new class of professional FX investors.
When size matters
Political risk is not a factor sterling has had to contend with recently, but the UK's general election on May 5 might see this change, says Daragh Maher, senior currency strategist at Calyon in London
CLS set to expand remit
LONDON – CLS could substantially increase its remit with the introduction of a matching and netting facility for non-eligible currencies and settlement of options, non-deliverable forwards, futures and credit derivatives.
Lloyds wins out on dollar decline
Lloyds TSB tops the 12-month ranking again as it maintains its view that the dollar will continue to decline given the US deficit situation.
What is the fate of the greenback?
Corporates need to be aware of the likely fate of the dollar. Simon Miles (below), head of dealing at London-based foreign exchange brokerage CorporateFX, points to economic policies leading to another bubble, and says the authorities need to do more to…
Reasons for rand depreciation
Tania Kotsos, senior emerging markets strategist at RBC, highlights the reasons why the South African rand should weaken over the next 12–18 months
Ruble and NOK benefit from high oil price
OSLO – The strong oil price has led to strength in currencies such as the Norwegian krone and the Russian ruble, as exporting nations benefit from strong revenue flows.
Options traders top pay bracket
LONDON – UK forex options dealers raked in the largest pay packets this year, with total packages averaging more than £500,000, according to a survey by City-based executive search firm, Napier Scott.
Departures hit Deutsche Bank
LONDON & FRANKFURT – Deutsche Bank has been hit by a series of departures across FX departments in recent weeks.
Behind the dollar rebound
MG Financial tops this week's three-month YTD forecast by looking for dollar-corrective moves, said Ashraf Laidi, chief currency analyst at MG Financial in New York.
BarCap forecasts mid-year RMB peg change
BEIJING – Barclays Capital is forecasting a mid-year change to the renminbi (RMB) peg, the bank announced at its global FX conference in the Chinese capital last Friday.
Korean banks report mixed FX results
SEOUL – Korean banks reported strong revenues from their FX business in 2004, with one bank seeing a rise of more than 40%.