March 5, 2014 - Put simply, hedging is an exchange rate risk management strategy to protect against changes in foreign exchange rates. A lot of companies will only look to discuss hedging after foreign exchange rate movements have moved against them, hurting their bottom line. Understanding a few hedging basics may help your company get ahead of the game in deciding when to consider using hedging mechanisms, so you don’t have to find out for yourself.
August 21, 2013 - In our last edition of Foreign Exchange Insights, we discussed how Central Bank Policies have impacted Foreign Exchange rates. We discussed the recent measures the European Central Bank took, as well as those taken by the Japanese Central Bank. In this edition we are going to continue with our Central Bank focus, but we will focus on the steps the US Federal Reserve Bank is taking. We will discuss the impact that it is having on the FX Markets.
May 9, 2013 - One of the highlights of last week was that the European Central Bank cut its benchmark policy rate by 25bp, to 0.5%, to counter mounting disinflationary pressure resulting from the ongoing euro area recession, with economic weakness increasingly spreading to core member states (Germany and France specifically) . The rate cut had been widely anticipated and largely priced in and the EUR – USD currency pair traded off slightly on the news. Also the euro area unemployment rate rose 0.1pp to 12.1% in March, reaching a new all-time high since the series started in 1993. It is not widely anticipated that the Labor market will improve significantly any time soon in the EUR area.