Currency Forwards and Option Hedging Strategies Rise with Soaring US Dollar

The US dollar has risen about 15% against a basket of currencies over the last year with rising U.S. interest rates and safe haven flows. The higher greenback has reduced the profits of U.S. multinational companies that convert foreign currency into dollars, multinationals such as Coca-Cola Co, Procter & Gamble and Philip Morris International are just some seeing an impact. The US dollar is at a two-decade high against the Japanese yen, up 13% this year. Against the Euro is … Continue reading “Currency Forwards and Option Hedging Strategies Rise with Soaring US Dollar”

Japanese Yen Weakest Major Currency Against US Dollar in 2022

Rising U.S. interest rates and safe haven flows have seen the U.S. dollar soar in 2022. The American 10-yr yield rose six basis points to 3.12%, hitting a fresh high for the year while the 2-yr yield fell five basis points to 2.67%. The US Dollar Index (DXY) hit a 20-year high, the highest levels since 2002. The weakest component of the index has been the Japanese yen, sliding around 12 per cent against the dollar and underperforming even weak … Continue reading “Japanese Yen Weakest Major Currency Against US Dollar in 2022”

Japan Adds to Bond Route Selling Treasuries as Currency Hedging Costs Soar

Bonds have collapsed at a rapid pace with soaring inflation and a one-way market. The US dollar has soared at the same time with the BOJ and the Fed Reserve at difference policy ends. The Japanese Central Bank still is an aggressive buyer of JGB’s while the Fed pares its $9 trillion balance sheet. Japanese institutional managers are now selling US bonds, BMO Capital Markets shows they have offloaded almost $60 billion over the past three months. One could argue this … Continue reading “Japan Adds to Bond Route Selling Treasuries as Currency Hedging Costs Soar”

US Dollar Hits 20 Year High in April on High Rates and Safe Haven Flows

The U.S. dollar has soared with safe haven flows as geopolitical fears grip the world and interest-rate increases from the Federal Reserve. US Dollar Index (DXY) hit a 20-year high, the highest levels since 2002. The Greenback reached multiyear highs against the euro, the British pound and the yen in April with the positive rate differentials, a huge part of the dollar’s strength. A strengthening dollar also tends to weigh heavily on emerging markets currencies, a rising dollar makes dollar-denominated … Continue reading “US Dollar Hits 20 Year High in April on High Rates and Safe Haven Flows”

Japanese Yen and Swiss Franc Attract Flight To Safety Bids on Virus Fears

The Japanese yen and the Swiss franc received safe haven bids on Friday as the global markets panicked on news of the Covid Omicron variant. In a thin market it also gave traders an opportunity to book profits after an extended rally in the US dollar. On the flip side commodity beneficiaries and the growth sensitive Australian dollar and Norwegian krone sold off. Moves weren’t just against the dollar. Whilst the euro rose 0.97 percent to a high of US$1.1312, … Continue reading “Japanese Yen and Swiss Franc Attract Flight To Safety Bids on Virus Fears”

Traders Market Weekly: Retail Sales, Chips and Inflation

November 14 – 20 2021 FEAR NOT Brave Investors Where have we been and where are we going? Join our weekly market thread on Traders Community… Retail Sales, Chip Earnings and Inflation The Week That Was – What Lies Ahead? Contents Part A: Stock markets Part B: Bonds Fed and Banks Part C: Commodities Energy – Oil and Gas Gold and Silver Part D: Foreign Exchange Geopolitics and Economics Economy Week ahead Editorial The markets shrugged off lots of land mines this … Continue reading “Traders Market Weekly: Retail Sales, Chips and Inflation”

Traders Market Weekly: All Risk, No Fear, Mania and  inflation

November 7 – 13 2021 FEAR NOT Brave Investors    Strange times But remember The Joker once served as the Iranian ambassador for the United Nations. All Risk, No Fear, Mania and  inflation The Week That Was – What Lies Ahead? Editorial Like a scratched record another week of no fear for US stock markets, risk on is oblivious to cracks appearing in this mania. S&P and NASDAQ closed at record highs for the seventh straight day, NASDAQ up for … Continue reading “Traders Market Weekly: All Risk, No Fear, Mania and  inflation”

Traders Market Weekly: Record Highs, Fed and  Jobs

Join us in our weekly market thread. November 1 – 6 2021 Where have we been and where are we going? Join our weekly market thread on Traders Community… FEAR NOT Brave Investors  Strange times But remember The Joker once served as the Iranian ambassador for the United Nations. Record Highs, Fed and  Jobs The Week That Was – What Lies Ahead? Editorial Another week of no fear for US stock markets, risk on is oblivious to cracks appearing. The … Continue reading “Traders Market Weekly: Record Highs, Fed and  Jobs”

Traders Market Weekly: Bitcoin, Earnings & Commodities

Join us in our weekly market thread. October 17 – 23 2021 Where have we been and where are we going? Join our weekly market thread on Traders Community… FEAR NOT Brave Investors  Strange times But remember The Joker once served as the Iranian ambassador for the United Nations. Bitcoin, Earnings and Commodity Prices The Week That Was – What Lies Ahead? Editorial Risk On came alive Thursday and Friday this week after Chinese Credit stress and U.S. options expirations … Continue reading “Traders Market Weekly: Bitcoin, Earnings & Commodities”