Sooner or later, it looks as if Japanese policymakers could intervene in the FX market by using a three-step process.
Last week, we saw the third attempt by US dollar/yen to really break through the 150 level that has proved an insurmountable barrier twice before since October 2022.
The by-product of this is plunging FX volatility, something that usually works to the benefit of risker currencies.
The FX carry trade has performed well in the first two months of the year helped, undoubtedly, by the persistence of low rates in one of the main funding currencies –...
Some people said the more the US dollar is lent internationally, the weaker the US dollar becomes. So, which is correct?
What does the inability of US dollar/yen to move too far from 150 tell us about the state of the currency market?
At the start of this year, many analysts expected euro/dollar would trade up from its opening level of 1.06 to around 1.10 in mid-year and then on to 1.15 by the...
G10 FX volatility remains low with implied one-month euro/dollar volatility below 7% right now, or around a half of the level that we were seeing a year ago.
While revenue from many other business activities dropped sharply, many banks still "won big" from foreign exchange business.
Dollar/yen has risen into the region that prompted the Bank of Japan to intervene in the FX market last autumn. Hence it seems that intervention was only successful for...
We can make the case that positioning in some markets has been overextended.
Currently, foreign exchange rate fluctuations in Vietnam are assessed at an acceptable level, helping to increase foreign exchange reserves. With exchange rate...
Volatility has slumped in the G10 FX market. Should we take this as a sign that boring range-trading is set to persist? Or is it a sign that the market is waiting for...
According to experts, the USD/VND rate will experience strong pressure in 2023, with domestic inflation and the Fed's rate hike having a big impact on its volatility.
As far as we can see surveys of investors appear to show a clear preference for international equities over those in the US. This can change, of course but, if it does...
VNDirect Securities Corporation expects Vietnamese foreign exchange reserves to recover to 3.3 months of imports and reach 102 billion USD by the end of this year from...
Different export firms are affected differently by FX volatility and an increase in interest rates.
Trading has only just resumed for the year but already the FX market seems to have the bit between its teeth to produce another volatile year.
The BIS’s recent report titled "Dollar Debt in FX Swaps and Forwards: Huge, Missing, and Growing" sounds quite alarming.
In addressing this question, we want to look at what surprises could happen next year that boost currencies in a way that we might not be anticipating.
Major central banks have accumulated huge amounts of assets via all the bond (and FX) purchases done over the years since the global financial crisis (GFC).
Just recently we’ve seen two instances of intervention: FX intervention by the Bank of Japan (BoJ) and Bank of England (BoE) intervention in the gilt market.
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