Investors Still Overpaying for Currency Hedging: Study

A new study by Lumint Corporation and New Change FX (NCFX) argues asset managers are “turning a blind eye” to FX costs and passing these costs directly on to end investors by means of a lower net asset value. The study finds the average transaction cost of an overlay FX hedge is $267 per million, […]
Read More »

And Finally…

There was an interesting development from the Royal Bank of Canada last week when it announced that it had launched a new AI-based trading platform for its equities business, and I, for one, am very interested to see how – if at all – the trading style offers something different. I do believe that when […]
Read More »

In the FICC of It

There is plenty for Colin Lambert to ponder in this week’s podcast as he reviews the feedback to his recent comments suggesting the NDF market doesn’t need fragmentation, lets listeners in on the background to something that has been puzzling him, and then, with no little trepidation, he “tiptoes” into Cryptoland. Of course, there is […]
Read More »

Low Rates, Hurricane, Fire Damage Lift Home Building

The housing sector has been on a general upward trend for the last several months, fueled by record low mortgage rates. Home building and sales tumbled at the beginning of the pandemic due to uncertainty and social distancing. But the Federal Reserve’s stance of low rates for a long time, a recovery of some jobs […]
Read More »

Retail Sales Surge, Up 1.9% in October

Retail sales rose for the fifth straight month in September, with gains in almost every sales category. Total retail sales rose by 1.9%, well ahead of the 0.7% gain expected and following a 0.6% gain in August and a 1.1% rise in July. Motor vehicle sales jumped by 3.6% in September after 0.7% gain in […]
Read More »

US Initial Claims Surge; Manufacturing Data Mixed

Initial claims rose by 53,000 to a level of 898,000 in the October 10 week, well above expectations for a decline to 833,000. The four-week moving average for initial claims rose by 8,000 to 866,250 in the current week, the first increase after 10 straight declines, the Labor Department reported Thursday, based on state tallies. […]
Read More »

And Another Thing…

I have often joked, in a (semi) light-hearted fashion, that you can tell when the FX market is set for a boom in terms of demand or activity because some banks start exiting the business. If there is a true cycle involved, one can’t help but think that some institutions give the perception that they […]
Read More »

US Sept PPI Jumps 0.4% on Surge in Food

US business prices rose by 0.4% in September, ahead of expectations for a 0.2% increase and reflecting a sharp rebound in food prices and a strong gain in the core measure, the Labor Department reported Wednesday. Larger-than-expected monthly gains lifted their year/year rates to their highest points since the beginning of the pandemic. Food prices […]
Read More »

BoE’s Bailey Discusses Negative Rate Criteria

The UK’s top rate setter suggested that negative interest rates may be more effective once an economy begins to recover, but repeated that the Bank of England (BoE) is not considering an imminent rate cut. “We’re not there at the moment,” said BoE Governor Andrew Bailey Tuesday, addressing the House of Lords Economic Affairs Committee […]
Read More »

US Sept CPI Rose by 0.2%; Gains Slowing

The September consumer price data were right on expectations, with 0.2% gain for both headline and core CPI. The year/year rates for inflation remain significantly below their pre-COVID levels and will not trigger alarm among any remaining inflation hawks, even if further stimulus measures are passed. Energy prices rose by 0.8% in September, but gasoline […]
Read More »