European financial institutions are concerned that any renewed escalation of trade tensions with the US could spill over into actions that would limit their ability to source dollar funding. A chief risk officer (CRO) at a European wealth manager says this scenario remains “extreme”, but not impossible. “One of the scenarios I have been starting
US president Donald Trump’s whipsawing tariff policies created a perfect storm for foreign exchange options dealers, as hedge funds rushed to short US dollar positions while systematic volatility sellers and large macro funds sat on the sidelines. The ensuing volatility left traders wondering if they had slipped into the wrong desks, or even another dimension.
The sharp fall in the US dollar following President Donald Trump’s “liberation day” tariffs announcement saw intense activity on foreign exchange options desks, leaving dealers rushing to buy volatility to re-hedge EUR/USD books as spot surged. “It was manic… it almost made the Turkish lira [moves] irrelevant,” says one head of FX derivatives at a
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
In the US, March Madness is synonymous with the annual knockout college basketball tournament, known for its unpredictable results and stunning turnarounds. But the country has seemingly exported this concept to its foreign policy in the past month, with shifting tariff threats, territorial disputes and abortive peace talks with Russia putting foreign exchange on the
New CME venue aims to provide easier access to FX futures liquidity, but some worry about its stability in choppy markets Source link
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
A US technology vendor is aiming to offer combined trades in multiple asset classes, as part of a wider effort to push electronic trading for more complex products. OneChronos, which operates an alternative trading system (ATS) for equities, will extend its auction system to the foreign exchange spot market, enabling users to co-ordinate related transactions
A growing number of market-makers and traders say price discovery for several key G10 currencies has already shifted to CME’s foreign exchange futures markets and away from primary venues for certain pairs. In particular, some senior figures say futures contracts have become the primary pricing reference point for the Commonwealth currencies – Australian dollar, Canadian
The London gold market is facing a mounting structural crisis. Bullion banks that lend precious metals to producers and each other moved over 200 tonnes of gold to New York in January in response to US President Donald Trump’s tariff threats, leaving the London market desperately short of physical supplies. Dealers in London routinely borrow
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
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
Franklin Templeton has become the largest user of foreign exchange options among US mutual funds, taking the top spot from Morgan Stanley Investment Management for the first time since the end of 2020. The California-based fund manager increased notional volumes by around $340 million during the third quarter of 2024, taking the total size of
