Institutional investors take profit on gold trades – FX Markets Skip to main content End of drawer navigation content Hedge funds trimmed longs after gold rally and triggered massive market selloff Following a 50% year-to-date rally in gold prices to more than $4,000 an ounce, institutional investors have begun closing some of their long positions […]
Pimco piled into euro put options in Q2 – FX Markets Skip to main content End of drawer navigation content Counterparty Radar: EUR/USD buying spree takes Pimco’s FX options book to $7 billion Pimco has typically been a light user of foreign exchange options. But as the tariff turmoil raged in Q2 this year, the
European corporates have been shortening the tenor of their foreign exchange forwards hedges so they can react more quickly to market conditions should spot and hedging costs improve, according to dealers. Banks say corporates that typically might have hedged at the five-year tenor are now looking at monthly rolling strategies, for example. “Our volumes pick
PBoC’s language suggests policy shift on yuan – China economist – FX Markets Skip to main content End of drawer navigation content Central bank drops “cautious” from pronouncements on currency’s internationalisation More assertive language from the People’s Bank of China on renminbi internationalisation suggests a policy shift from the central bank, an economist tells FX
When Citi’s global head of foreign exchange, Flavio Figueiredo, took on the top role in Citi’s global FX unit in the summer of 2023, priority number one was a strategic reset for the business. An internal review had identified gaps with peers in FX options and electronic trading, as well as with specific client segments
The popularity of hybrid options is expanding beyond hedge funds, with a growing number of asset managers, pension funds and insurers taking advantage of dislocated correlations between asset classes for yield enhancement and cheap long-term hedging. “The biggest chunk has been with hedge funds, but some of the largest trades have been done with asset
Speakers at IIF conference believe dollar selloff is cyclical rather than a structural decline Source link
Foreign exchange sales desks may have taken solace in the Bank for International Settlements’ (BIS) recent report showing a surge in FX turnover this year. With average daily volumes exceeding $9 trillion a day, this new representation of the status quo marks a milestone for the market. The desks may be less enthusiastic further down
Hedge funds switch yen bets after Japan election shock – FX Markets Skip to main content End of drawer navigation content Takaichi victory forces unwinds and a move to topside trades, while barriers give dealers a headache The surprise outcome of the Japanese election has led to a U-turn among many macro hedge funds that
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Hedge funds are continuing to run Hong Kong dollar carry trades despite a rise in local interest rates, albeit on a much-reduced scale compared with earlier in the year. Dealers, however, expect a big resurgence in these positions should spot once again hit the bottom of the currency’s trading band, which would force authorities to
Hugh Stevens has joined Wells Fargo as head of electronic foreign exchange trading for Europe, the Middle East and Africa (Emea). Stevens previously spent over seven years at Standard Chartered in London and New York, most recently as head of e-FX trading for the Americas. He reports to Chad Berner, head of electronic and G1O
As hedge funds have ballooned in recent years, so has their footprint in the few markets large enough to accommodate them. This isn’t a problem when their trades are going well. When those trades backfire, though, it can be a different story – particularly if multiple funds are holding the same position and all try
Natixis has made a series of senior hires in its rates and foreign exchange market-making business in the Asia-Pacific region to bolster its position with flow clients, while also making several trading appointments in China to target local corporates. Among these hires are Michael Rothlin, who has been appointed head of Apac G10 linear rates
As the ultimate safe haven, gold prices sitting at all-time highs can often be indicative of widespread panic. Yet the options market tells a different story, with the metal’s 43% year-to-date gains coming on surprisingly low volatility, suggesting investors are building positions without a disorderly scramble and there may be more upside to come. Spot
The surge of activity in Hong Kong dollar foreign exchange trading this year offers a reminder of the potential perils when pricing and trading derivatives linked to pegged currencies, traders say. “Of course, the Hong Kong dollar market is a huge options market for the investor community, for hedge funds, like us, and for corporates,”
Has US dollar hedging hype faded? – FX Markets Skip to main content End of drawer navigation content While the initial wave of real money USD hedging flows disappointed some dealers, many believe there is more to come When concerns about incoming tariffs earlier this year led to the US dollar shedding its traditional role
