‘Uncertainty’ has emerged as the favourite word for corporate executives describing the prevailing business backdrop. According to first-quarter earnings calls analysis, use of the word or its variants hit a five-year high, surpassing mentions at the pandemic’s start in 2020.
Macroeconomic conditions and financial markets have become highly unpredictable over the past eight weeks as significant tariff threats on US imports loom over investors and companies, muddying the outlook globally. This has corporate treasurers defensive: as markets whipsaw and established correlations break down, hedging exposures and earnings becomes vitally important.
“Risk-off scenarios are now concurrent with a weaker dollar,” James Carolan, global head of institutional FX structuring at Deutsche Bank, tells Euromoney, noting that the dollar’s behaviour “signifies the potential for a broader structural shift in FX markets”.
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