Trading
Dollar to continue its slide next year
Michael Klawitter, senior currency strategist at WestLB Global Financial Markets in Düsseldorf, sees the euro continuing its appreciation against the dollar next year
Reuters outage spells pricing void
LONDON - The pitfalls of relying on electronic systems was made clear to FX traders last week, as a power outage at Reuters' technical centre left them without pricing in European currencies for seven hours. The outage, which began at 2.34pm in London (9…
US banks hit by flat trading
New York – Poor market conditions have led to a sharp fall-off in FX revenues for some US banks, but others managed to post increased returns in the third quarter.
Hedging Chinese renminbi revaluation
To boost returns on the event of Chinese renminbi revaluation, trading on the recently launched Bloomberg-JPMorgan Asian Currency Index (ADXY) is the best solution, says Erik Herzfeld, head of regional options trading at JP Morgan in Singapore, and…
SIBOS 2004
CLS rules the roost at Sibos
Indian forex settlement service joins CLS
MUMBAI – Indian FX settlement service the Clearing Corporation of India (CCIL) will go live on CLS on October 23.
Deutsche gets China FX derivatives licence
Deutsche Bank has become the latest foreign bank in China licensed to trade onshore currency derivatives. An un-named Deutsche Bank official in Singapore said the China Banking Regulatory Commission gave the German bank the go-ahead last week.
US banks hit by flat trading
New York – Poor market conditions have led to a sharp fall-off in FX revenues for some US banks, but others managed to post increased returns in the third quarter.
Yield enhancement for European investors
Polish investors anticipating zloty strength over the coming year should consider a 'zloty bull note' to provide higher returns than a one-year deposit, says Andy Kaufmann, head of FX structured products for Europe, the Middle East and Africa at Merrill…
Special Feature - CLS settlement: the next two years
As CLS enters its third year, Joseph De Feo discusses plans for expansion Two years ago, the CLS Group launched the world's first global settlement service for foreign exchange trades. Following several other aborted efforts to tackle Herstatt, or…
Are consensus forecasts useful?
Analysts differ over the tools they use to put together their currency forecasts. Some rely on macro fundamentals, economic data forecasts or flow data, while others rely purely on technical indicators.
GFI launches new FX option data service
NEW YORK – Broker and market data firm GFI Group has launched a new currency options historical data service for quantitative experts, risk managers and middle-office employees at banks active in the FX markets.
SARB to cut before year-end?
Royal Bank of Canada expects a 50bp rate cut in South Africa to 7.00 before the end of the year, explains Tania Kotsos, senior emerging markets strategist at the bank in London
EBS gets foothold in China
SHANGHAI – Spot broker EBS has signed up Bank of Montreal as the first bank in mainland China to use EBS Spot, its spot broking platform. Through the agreement, Bank of Montreal (BMo) will be able to trade spot FX from its offices in Beijing, Guangzhou…
JP Morgan and Bloomberg launch Asian currency index
SINGAPORE – JP Morgan Chase and market data vendor Bloomberg have teamed up to launch a tradable index of currencies from Asian emerging markets, the firms announced last week.
BIS paints bright future for FX
BASEL – The huge growth in daily turnover in the global foreign exchange market, revealed in the Bank for International Settlements’ (BIS) triennial FX survey last week, has painted a bright future ahead for forex market participants.
Oil woes hit yen
Neil Mellor, London-based analyst at Bank of New York points to the weakness of the Japanese market in the wake of high oil prices
Seven banks to start testing CME FX on Reuters
CHICAGO – Seven banks will start beta-testing CME FX, the Chicago Mercantile Exchange’s e-FX futures available on Reuters 3000 terminals, at the end of the fourth quarter, Reuters and the CME said last week.
Monetary policy key for Norway trades
OSLO – Norway’s monetary policy will be the major driver of the krone this year, market participants have told FX Week .
NDFs for a company with operations in China
Clients based in one country with manufacturing bases in another are exposed to risk if the country of production’s currency appreciates. Here, Ashish Advani, director, risk solutions at Travelex in London, proposes a solution that hedges the risk using…
Currency derivatives turnover soars ahead
A marked feature of the Bank for International Settlements’ (BIS) latest triennial survey of the global FX markets is the massive surge in derivatives turnover.
US, UK and Australia win in global boom
The main winners in the booming global FX industry are those markets benefiting from control of the lion’s share of forex activity, soaring trade and commodity-related currency business – notably the UK, the US and Australia.
Lack of volatility in US/£ pair
There has been little divergence in views on cable over the last few weeks in the FX Week Currency Forecasts Index, reflecting lack of volatility in the currency pair.