Trading
Forex liquidity crisis looms
LONDON – Top banks UBS, Deutsche Bank and Barclays Capital warned of a potential liquidity crisis in foreign exchange at the FX Week 2004 Congress in London last week.
Congress clips
The continuous-linked settlement (CLS) service for settling foreign exchange trades announced the launch date for the next group of currencies to join the service.
Size of dollar fall surprises
With a swing of more than 9% in the euro/dollar pair in the month to November 22, banks underestimated the size of the dollar's fall across the board. But BNP Paribas, which ranked top for the one-month forecasts this week, picked up on the dollar's…
Dynamic hedging strategies in Turkish lira
Emerging markets options offer the benefit of extreme differences in implied volatility and interest rate differentials. Here, James Davison, FX derivatives marketer at ABN Amro in London, outlines how corporate clients can see the benefits investors…
Trends are the way forward
Jessica James, director of the risk advisory group at Citigroup in London, extolled the virtues of trend and carry strategies for FX trading at the FX Week Congress in London last week.
Forex appeal set to continue
Foreign exchange is likely to continue to appeal to investors as an asset class, as a result of its liquid and transparent markets and the trading opportunities it offers, said Daniel Szor, managing director of currency firm FX Concepts in Paris.
CME expects prop trading growth
The changing shape of the FX market and of the world economy will lead to significant changes in the way foreign exchange is traded.
China eases capital outflow restrictions
HONG KONG – authorities have taken further steps that should allow greater flows in foreign exchange trading over the coming months.
Who wins from yuan revaluation?
With a potential yuan revaluation looming, Adam Cole, senior currency strategist at Royal Bank of Canada in London, analyses the impact on the G10 FX markets.
Commerzbank "exits London"
LONDON – Commerzbank is to close its trading and sales forex operations in London.
UBS holds onto pole position
LONDON – UBS is the top-rated bank in FX, according to the 1400 voters in FX Week's 10th annual survey of the market.
Slow start for India's retail FX market
MUMBAI – Nine months after retail investors were given the de facto go-ahead to start forex trading overseas, volumes have been subdued, say analysts.
Dollar to fall after G20 summit?
The G20 summit on Saturday could presage another drop in the dollar against the euro, according to forecasters on the FX Week Currency Forecasts Index, speaking last week.
Protecting against losses while making gains
Given the rapid, one-way move in the Canadian dollar (CAD), many hedgers who are short CAD are looking for innovative hedging ideas. John McAuliffe, manager, US FX options sales at the Bank of Montreal in Chicago, suggests some options
UBS holds onto pole position
LONDON – UBS is the top-rated bank in FX, according to the 1400 voters in FX Week's 10th annual survey of the market.
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.
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.
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.
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.
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.
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
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
Spotlight on Japan's yen policy
With the focus on the US, little attention has been paid to Japan. Jake Moore, FX analyst at Barclays Capital in London, examines the MoF's likely actions now the US election is over
Window barrier for a Canadian manufacturer
Canadian manufacturers are looking for innovative hedging ideas in an increasingly bleak exporting environment. Richard Stang, an FX sales dealer at TD Bank Financial Group in Toronto, suggests one potential solution