Opinion/Trading
Protecting against euro resurgence
A Hong Kong-based firm could use a series of resetting bonus forwards to hedge against a potential euro rebound, say Charlie Brown, head of structuring at Standard Chartered Bank in London, and Mike Image, structurer for North-east Asia global FX options
Cause and FX
Corporate hedging practices have become a focal point for equity investors, as companies look beyond traditional risks. Alex Patelis, senior G-10 FX strategist at Merrill Lynch in London, highlights the risks to balance sheets from capital losses on…
Hedging solution for Canadian exporters
A series of Canadian dollar calls could be the solution to Canadian exporters’ concerns about the direction of US dollar/Canadian dollar, says Shaun Osborne chief currency strategist at Scotia Capital in Toronto
Multi-choice options for eurozone exporters
The multi-choice strategy forward option can offer flexibility to a euro-denominated exporting company looking to hedge its long-term dollar exposures, says Roman Stauss, head of FX product development at Commerzbank Securities in London
Is the dollar bouncing back?
The US dollar may have been mired in decline in recent months, but a recovery could be on the cards sooner than expected, says Tony Norfield, global head of FX strategy at ABN Amro in London
Cheap volatility brings yen opportunities
Japanese economic growth has outstripped many western economies over the past year, and the next currency breakout in the FX markets could be yen strength. Alex Schumann and Trevor Nathan, of Commonwealth Bank of Australia in Sydney, show how investors…
New Europe's FX trials
The convergence process of accession countries has been put into question. Currencies of those countries, and the Hungarian forint in particular, are likely to continue to be under pressure, say Mehmet Simsek (right) and Yianos Kontopoulos, FX…
Put the brakes on
European policymakers may have cause for concern if the recent euro rally continues, says Paul Meggyesi, senior currency strategist at JP Morgan Chase in London
A new crystal ball
Second-guessing the Federal Reserve is getting more complicated as the central bank enters uncharted territory, says Lara Rhame, FX economist at Brown Brothers Harriman in New York
Hedge optimisation under IAS39
All European Union listed companies must implement IAS 39 by the end of this year. Raymond Franzi, head of structuring, and Emmanuel Burot, head of structuring and accounting at Dresdner Kleinwort Wasserstein in London, outline how a European firm should…
Tale of two currencies
Recent FX market moves have exposed differing interest rate strategies for the eurozone and the UK, says Lorenzo Codogno (right), co-head of European economics at Bank of America in London
EUR-denominated diesel fuel hedge
There has been a recent trend for corporates to migrate the risk management of their commodity exposure from their procurement to their treasury departments. As the corporate’s risk is centralised, it is managed as part of a portfolio of more standard FX…
Appreciating the euro
With economic conditions in the eurozone worsening, the authorities are unlikely to allow the euro’s strengthening to continue, says Mitul Kotecha, global head of FX research at Credit Agricole Indosuez in London
You have the right to remain bullish
Indonesia’s currency has offered arresting yields, while the Singapore dollar is supported by its powerful monetary authority. Further gains in both are likely, say Standard Chartered’s Claudio Piron and Marios Maratheftis.
Step right up for Aussie risk hedging
Fears of Australian dollar volatility could be laid to rest by a step payment option, say Paul Rhodes and Gail Sheridan, financial engineers at UBS Warburg in London.
The leveraged reverse knock-in forward
With the recent strengthening of the Canadian dollar against the US dollar, a Canadian exporter with US receivables would be wise to consider a reverse knock-in forward, says Richard Stang, vice-president in FX sales at TD Securities in Toronto
Falling dollar, limited external adjustment
Issues surrounding capital flows and surpluses could lead to some countries reconsidering their currency pegs, says Steven Englander (right), chief currency strategist, Americas, at Barclays Capital in New York
Cycles, structures and the dollar
It is difficult to ascertain what drives the capital markets at any one time. Market participants often seem to confuse cyclical and structural factors, and this is especially true of the dollar now, says Marc Chandler, chief currency strategist at HSBC…
Riding with the euro
A European client buying US dollars should consider a three-year swap to use the current euro strength to their advantage, says Pritpal Gill, head of structuring at Lehman Brothers in London
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
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
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
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