Tag: Dollar

  • Short-term Trump FX trades ‘dead’ as euro rallies

    Short-term Trump FX trades ‘dead’ as euro rallies


    The so-called Trump trade of going long the US dollar via foreign exchange options has seemingly come to a sudden stop following the euro’s massive rally last week, forcing traders to U-turn on their bets.

    “I think the Trump trade is now dead and all the USD calls that were bought in various forms are either worthless or unwound,” says an FX options trader at one UK hedge fund.

    The move also created hedging headaches for market-makers trying to manage their options exposures as euro/US dollar

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  • TD, Goldman make strides with Ucits in FX forwards trades

    TD, Goldman make strides with Ucits in FX forwards trades


    TD Securities and Goldman Sachs made the largest ranking moves among dealers serving the FX forwards market for European retail funds during the first half of last year.

    The Canadian bank gained $14.4 billion in notional from trades with Ucits funds, increasing its market share to 9.5% from 7% and becoming the second-largest dealer in the space.

    Goldman Sachs followed close behind, adding $13.2 billion to its book, which doubled in size to 5% of the total. The growth propelled the US giant to the

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  • Funds tap options on FX vol amid tariff disruptions

    Funds tap options on FX vol amid tariff disruptions















































    Funds tap options on FX vol amid tariff disruptions – FX Markets






    Dealers say vanillas, digitals and knockouts on realised vol increasingly used to navigate Trump news flow


    FX-volatility-Getty-1484494449

    Hedge funds are increasingly taking out complex options structures that speculate on pricing of foreign exchange volatility levels across several currencies linked to US president Donald Trump’s tariffs.

    Investors have increasingly looked to incorporate vol-linked knockouts in vanilla FX options to cheapen them up and avoid crowded barrier zones. Others have looked at options directly on realised volatility, including spread trades across multiple currencies.

    “We continue to see a very inverted

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