The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX market: Boom and bust?

The FX market continues to hold up remarkably well as carnage engulfs many other assets. This is a theme that deserves to be looked into.

Those who work in it don’t need to be told that FX is an asset or that it’s a proper market. It simply is much cleaner and not so easily rigged as most others, such as equities.


It seems incredible that it was only a few years ago that company after company used to routinely report a fall in revenues because they had mismanaged their FX exposure. Put another way, they neglected to look after their assets properly. Those days would appear to be a thing of the past, and as one industry big cheese pointed out to me this week, this is one thing for which the banking industry deserves a pat on the back. It has educated its client base extremely well and also delivered the products that have made their lives much easier.


But there remains a real sense of nervousness in FX. The swaps market has obviously been severely impacted with the pressures in depos – it seems the days when anyone could broke depos as every quote was always a close variation on five eighths half, might come at 9 from what I remember – have passed. As I wrote a while back, we now have a new funding paradigm.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree