With FX volumes in Asia-Pacific (Apac) growing rapidly on the back of heightened volatility, HSBC is leveraging its regional and international footprint to broaden its FX offering, providing clients with robust solutions to meet their trading and hedging needs As worldwide trade disruptions have led to market volatility and uncertainty in Apac, market participants in […]
European asset managers and pension funds are adding more currency hedges to their US equity portfolios following a breakdown of the so-called ‘dollar smile’. The greenback typically appreciates when US stocks are booming or under extreme stress. For foreign investors, the phenomenon – known as the dollar smile – offers a natural hedge against sharp
US corporates are having a hard time responding to increased currency volatility as internal restrictions around hedging programmes make it difficult for them to react quickly to the shifting strength of the dollar. Heightened foreign exchange volatility, driven in particular by President Donald Trump’s chaotic tariff announcements, has seen the dollar weaken and made it
Since the start of Donald Trump’s second US presidency, many of his tariff-related social media posts have tended to appear late New York time. This piles extra pressure on the Asia trading session when G10 currencies are less liquid and creates risk management challenges for foreign exchange options market-makers. Barry McCarthy, head of FX derivatives
Dealers expect an increase in deal contingent foreign exchange hedging activity in 2025, in conjunction with heightened takeover deals from corporates and private equity firms in the latter part of the year. “We’ve certainly seen an uptick in deal contingent hedging,” says Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS.
Foreign exchange losses have begun to mount for some of the largest global corporates, with the likes of Amazon, Apple and Nike reporting revenues negatively affected by continued US dollar strength in the fourth quarter. Since September, the dollar has risen by as much as 7% against many G10 and emerging market currencies, reducing the
Corporates eye complex FX hedges as carry costs mount – FX Markets End of drawer navigation content Skip to main content Leveraged forwards and options-based structures entice treasurers facing rates uncertainty and FX volatility The shake-em-up economic policies trailed by new US president and so-called “disruptor-in-chief” Donald Trump have left corporate treasurers on both sides
Consultation papers are like tea leaves or runes: observers study them for clues to future actions or events. Such is the case with Iosco’s latest consultation paper on the controversial practice of pre-hedging. The document, released last November, has raised niggling concerns among market participants that the global standard-setter may be weighing tighter rules on
Does no-hedge strategy stack up for mag seven mavericks? – FX Markets End of drawer navigation content Skip to main content At Amazon, Meta and Tesla, the lack of FX hedging might raise eyebrows, but isn’t necessarily a losing technique The so-called magnificent seven – the seven largest US tech companies that famously make up
Amazon, Meta and Tesla reject FX hedging – FX Markets End of drawer navigation content Skip to main content FX Markets study shows tech giants don’t hedge day-to-day exposures Amazon, Meta and Tesla – three of the so-called magnificent seven tech firms that drive US stock market performance – decline to hedge their day-to-day foreign
