Trading
Loonie zooms
Canadian dollar strength is set to continue, say Lauren Germain and David Mozina, of Bank of America’s FX strategy group in New York. And the market is reacting accordingly
Citi rides out tough Q1
NEW YORK -- Citigroup shrugged off concerns about reduced FX client activity in the first quarter of 2003, reporting largely flat forex trading revenues last week.
A firm view on the rand
Unexpected data revealing South Africa’s current account surplus has led Merrill Lynch to cite a firm view on the rand. Jos Gerson, chief economist for South Africa in Cape Town, explains key factors that must be taken into account in coming to a solution
FX safe from equities threat
LONDON -- Top FX officials are confident the current peak in investor currency business could survive an equity market rally -- a prospect brought to the fore by the success of coalition forces in Iraq.
War threat to Q1 FX profits
NEW YORK – The impact of the war in Iraq on FX will become clear this week, when the US commercial banks publish trading revenues for the first three months of the year.
Singapore dollar hit by SARS woes
SINGAPORE -- Speculation mounted last week that the Monetary Authority of Singapore (MAS) had intervened to protect the Sing dollar’s narrow trading range, as fears over the SARS virus escalated.
When stocks rocket
Markets are expecting a post war rally in equities. Jesper Dannesboe, chief FX strategist at Dresdner Kleinwort Wasserstein in London, looks at the implications for FX
ABN, Deutsche top forecast rankings
LONDON -- ABN Amro was the most accurate currency forecaster based on a one-month prediction made on March 7, while Deutsche Bank took top spot for 3m forecasts submitted three months ago in FX Week ’s table of forecasters (see below).
Client trading volumes rising
LONDON -- Booming hedge fund interest and an increasing number of client banks in the market are boosting global customer forex volumes, according to data from research consultancy Greenwich Associates.
CFTC charges two for fraud
WASHINGTON, DC -- The Commodity Futures Trading Commission (CFTC) last week continued its drive against retail FX fraud, charging two firms with frauds totalling over $10 million.
More prime brokers take to web
LONDON -- Automation of the prime brokerage industry is well underway, with a host of new services set to hit the market in the coming months.
Audits attract UK funds to overlay
LONDON -- A growth in audit services to assess forex transaction costs is sparking increasing interest in currency overlay among UK pension funds.
Dare to compete
The Canadian dollar has a chance to shine, but will domestic exporters seize the opportunity? asks Craig Larimer (right), managing director, international research group, Banc One Capital Markets in Chicago
The ‘leverage range forward’ approach
A UK company exporting to the US looking to hedge long-term USD receivables may enter a ‘leverage range forward’ strategy to boost the hedge level, says Didier Meyer, FX options structurer and marketer at SG in Paris
CLS interest picks up in Asia
SINGAPORE -- Asian financial institutions are becoming increasingly aware of the continuous-linked-settlement (CLS) service, according to research made public by ABN Amro last week. Just 30% of respondents in the bank’s survey of its clients in the…
Japan confirms March interventions
TOKYO -- The Bank of Japan, on behalf of the Ministry of Finance, spent nearly ¥1.2 trillion in March in a bid to ease the Japanese currency’s strength against the dollar and the euro.
Dollar consolidation brings FX manager joy
STAMFORD, CT -- A temporary halt in the US dollar’s downtrend helped 60% of currency managers on the Parker FX Index maintain positive returns in February. But returns were limited -- the index was up just 0.16% for the month.
Reuters mounts EBS challenge
LONDON -- Reuters is mounting a bid to unseat the Electronic Broking Service (EBS) as the premier broker in euro/dollar, a senior Reuters official told FX Week .
War nerves compound cross-border M&A slump
LONDON -- Increased risk aversion due to uncertainty over the war in Iraq took its toll on cross-border mergers and acquisitions (M&A) in the first quarter of this year, according to data released at the end of March.
Market looks to post-war scenarios
LONDON -- The war in Iraq continued to dominate forex trading last week, but analysts are starting to look beyond the current conflict to what might happen next.
Trading practices yet to change post-CLS
NEW YORK -- Banks are reporting little change in the way they trade as a result of using the new continuous-linked settlement (CLS) service, according to an official survey out this week.
Electronic options broking to rise
LONDON -- Electronic broking of FX options is set to rise over the next 12 months, finds new research out this week.