FX pros bullish on volatility
Savvy investors understand that one of the biggest risk factors in their portfolio is their domestic currency. This is particularly important in the UK wherethe equity market is dominated by foreign companies, the value of whose overseas operations declines when sterling strengthens.
From strong and stable to weak and jittery, the pound bore the brunt of the surprise UK general election result, but despite May’s quick move to form a working coalition government, sterling will likely stay soft, say analysts.
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"Those investors who are denominated in sterling and already have international exposure [and therefore benefited from sterling’s decline last year] might now be tempted to switch into sterling hedged international equity exposure to try to lock in those gains."
FX: May lights a fire under sterling, for now
FX: Bad news better than no news as sterling surges on hard Brexit talk
On a day many expected would see the pound sink to new depths, the currency instead responded to news that the UK would be leaving the single market by posting its best performance since the referendum – but whether the day marked a turning point or a mere relief rally, nobody can be sure.
Weak UK economy ties Bank of England’s hands on FX intervention
New UK prime minister Theresa May is busy shaping her administration at 10 Downing Street, but it is events taking place barely two miles away, at the Bank of England on Threadneedle Street, that are exercising the minds of those trying to predict where the pound goes next.
FX: Sterling volatility here to stay as referendum countdown begins
The announcement of the referendum date of June 23 on UK membership of the European Union (EU) sent an already-weakening pound into a tailspin, which saw it testing multi-decade lows, but traders are divided on whether sterling has bottomed out as Brexit fears jump.
FX volatility wreaks havoc on UK corporate treasurers
The world’s two major currencies – the US dollar and the euro – are making strong gains against the British pound, which is potentially bad news for UK multinational companies that declare their profits in sterling.
FX swings knock company earnings
The surprise outright Conservative win in the UK election has boosted the pound against the dollar – meaning that some UK companies’ earnings are worth less.
Sterling faces Lehman moment as reality of lose-lose election sets in
The UK has entered election mode, with concerns about the country’s political future dominating trading in sterling. Volatility is rising and investors are seeking protection in the options market.
Political and fiscal risk to pose headwinds for sterling
Post-Scottish referendum, UK political risks have not gone away, while the fiscal picture remains dire.
Betting on UK current account-sterling relationship a risky business
Debate rages whether current accounts drive FX moves in developed markets or whether it’s a case of correlation, rather than causation.
RMB-sterling trading gets off to a flying start
Bankers are already seeing demand for direct renminbi-sterling deals, and anticipate a rise in volumes and market makers, since the announcement on Thursday it is now possible to directly trade these two currencies in China’s onshore interbank foreign-exchange market.
‘Darling’ sterling faces strong headwindsMay 2014
The UK pound has steadily appreciated against leading currencies during the past year, as positive economic data have provided a much-needed boost – but Scotland’s looming referendum on independence and escalating fears of a UK housing bubble suggest the rally is reaching its final stages, predict analysts.
Sterling hit its highest level since the 2008 financial crisis against the yen and a two-year high against the dollar, as the Bank of England (BoE) took a first step to normalize monetary policy in the face of a strong housing market – but it might power higher thanks to a seasonal boost.
Bank of England regime shift might inadvertently boost pound
The move from the Bank of England to join the Federal Reserve in linking its monetary policy stance to the unemployment rate has boosted the pound; it might continue to do so as investors adjust to the new regime.
Proactive central bankers to keep euro and sterling in check
Rarely have two decisions to leave interest rates on hold had such an impact on the currency market, but the Bank of England (BoE) and the European Central Bank (ECB) managed to put heavy pressure on the pound and the euro after their policy meetings on Thursday.
Sterling bears cling on as pound hits three-month high
Sterling continues to defy bearish expectations, powering to a three-month high against the dollar after UK manufacturing data beat expectations.
European capitals scramble to arrange currency trade deals with China
Sterling’s rebound set to run out of steam
UK banks’ £25bn shortfall: positive for banks, negative for BoE credibility
Don’t bet on the Bank of England to save sterling
Sterling bears caught short, but pound still vulnerable
Sterling plunges as pound slips inflationary anchor
Sterling vulnerable to fresh slide; caution required over currency war reboot
BoE King throws another grenade into bank-regulation debate in bid to shape legacy
Special focus: Currency warsMarch 2013
Bank of England's Mervyn King steals Carney’s thunder with focus on flexible inflation targeting
Bank of England governor-designate Carney draws battle lines but recognizes uphill struggle
Sterling slide poses hedging conundrum for treasurersFebruary 2013
Options market shows corporates unprepared for sterling slide
UK: Sterling safe from currency war but Brexit casts a shadow
Beware gilt market complacency after UK sovereign downgrade
Carney set to put sterling to the test
Sterling safe from currency war
Bank of England’s next governor Mark Carney: a radical in a conservative job