Covering the Spread: Does the Buck Stop Here?

Covering the Spread: Does the Buck Stop Here?

With Inauguration Day upon us, the US dollar retreated from earlier highs on Donald Trump’s recent call for a more competitive greenback. As the world’s sole reserve currency, when the dollar goes, so does the rest of the world. In our new series, we look at how post-election forex challenges could affect dollar-based corporate payments and transfers in the months ahead.

Five Things The Markets Are Talking About: Monday January 16, 2017

Five Things The Markets Are Talking About: Monday January 16, 2017

This is a busy holiday-shortened week for capital markets. Today, U.S banks will be closed in observance of Martin Luther King Day.

On Tuesday, U.K’s PM Theresa May is expected to call on the country’s populace to reject the hostility of the Brexit referendum in a speech that being billed as setting the stage for a “hard” exit from the E.U. The pound’s plummet overnight to last Octobers ‘flash’ crash levels (-1.6% to £1.1987) seems to have got ahead of her.

The Week Ahead: Trump Presser Weakens Dollar Awaiting US Inflation Report

The Week Ahead: Trump Presser Weakens Dollar Awaiting US Inflation Report

The defining moment of the week for the USD came as the first press conference of the President-elect Donald Trump unfolded. Few details on topics the market cared like infrastructure spending or fiscal stimulus were shared while the most combative aspects of his campaign were in full view. Inauguration on Friday, January 20 starts the countdown for the first 100 days of the Trump era that is expected to deliver bold action that could see the USD appreciate across the board

Five Things The Markets Are Talking About: Thursday January 12, 2017

Five Things The Markets Are Talking About: Thursday January 12, 2017

U.S dollar bulls should be preparing for many more Trump disappointments. Yesterday’s was the first, but certainly not the last. In his first press briefing as U.S. president-elect, Trump presided over a wide-ranging session that touched on many topics, but with little substance.

Five Things The Markets Are Talking About: Monday January 9, 2017

Five Things The Markets Are Talking About: Monday January 9, 2017

Last Friday’s U.S. December employment increased less than expected (+156k vs. +176k), but the markets interpretation in a rebound in wages (+0.4% m/m) suggests a sustained labor market momentum that sets up the domestic economy for stronger growth and further interest rate increases from the Fed in 2017.

The Week Ahead: US Wage Gains Lift Dollar Despite Jobs Miss

The Week Ahead: US Wage Gains Lift Dollar Despite Jobs Miss

The markets picked up where they left off last year. The release of the FOMC minutes from the December meeting along with President-elect Trump’s tweets impacted prices and almost overshadowed the release of the biggest economic indicator: the non-farm payroll report.

Five Things The Markets Are Talking About: Thursday January 5, 2017

Five Things The Markets Are Talking About: Thursday January 5, 2017

Fed minutes released yesterday revealed that apart from a unanimous agreement to raise interest rates for the first time in a decade last month, the committee expressed concerns as to the results of future Trump policies, with a view to maintain a “wait-and-see approach.”

Five Things The Markets Are Talking About: Tuesday January 3, 2017

Five Things The Markets Are Talking About: Tuesday January 3, 2017

For capital markets, the month of December was dogged by thin holiday trading as global equity indexes marched within striking distances of new records, the dollar ending the year losing some of its shine as dealers closed their books despite global yields floating atop of their year highs.

However, two unexpected major events dominated trading in 2016 –

The Week Ahead: Bank of Japan in the Spotlight

The Week Ahead: Bank of Japan in the Spotlight

The USD is higher across the board after the Fed finally announced its much awaited rate hike. The market had already priced in the 25 basis points rate hike to the Fed funds rate, but the hawkish tone of the FOMC statement, dot plot and Fed Chair Janet Yellen’s press conference have boosted the USD and solidified the strong dollar rally. Improving U.S. economic conditions were cited and the expectation now is of at least 3 rate hikes in 2017. The effect of those improved forecasts have been felt around the globe.

Five Things The Markets Are Talking About: Monday December 19, 2016

Five Things The Markets Are Talking About: Monday December 19, 2016

The dollar and sovereign yields fell overnight while Asian shares printed a new monthly low as the market cashed in some of their recent bets on Trumponomics and the ‘reflation’ trade. However, this will be a light week on many fronts – liquidity and fundamentally.

A look back at 2016: The Payments Perspective

A look back at 2016: The Payments Perspective

In the final part of our Payments Perspectives blog series, we take a look back at how corporate treasury specialists coped during an eventful Q4, and what they should prepare for in the face of another volatile year.

Five Things The Markets Are Talking About: Thursday December 15th, 2016

Five Things The Markets Are Talking About: Thursday December 15th, 2016

The Fed did not surprise, they did what was expected of them on the headline, but it’s their foresight that has capital markets wildly gyrating.

The big takeaway from yesterday’s FOMC meeting is the increase in the pace of tightening that’s been signaled for next year. Policy members voted unanimously to raise its target for the fed funds rate up +0.25% to +0.5%- 0.75%.

Five Things The Markets Are Talking About: Monday, December 12, 2016

Five Things The Markets Are Talking About: Monday, December 12, 2016

On the calendar front this is a busy week in capital markets.

The Fed is expected to increase fed funds for the first time in 12-months. On Wednesday, the FOMC will issue both its policy statement and quarterly forecasts while Janet Yellen will take questions that will bridge “present policy with pending stimulus” under the Trump administration. 

The Week Ahead: Fed Highly Anticipated to Hike US Rates

The Week Ahead: Fed Highly Anticipated to Hike US Rates

Fed to finally raise rates in 2016 after turbulent year.

The U.S. Federal Reserve gets ready for the final monetary policy meeting of the year, and just like last year there is a high probability of a rate hike announcement.

Payments Perspectives: Volatility Weighing on Mexico’s Peso

Payments Perspectives: Volatility Weighing on Mexico’s Peso

In the weeks after the U.S. election, Mexico’s peso took a hit over uncertainty about the country’s relationship with key trade partners--especially its northern neighbor. This could be a good time for financial professionals at multinationals exposed to the peso to assess exchange rate risk as it relates to payments and transfer activity. We examine the currency’s recent volatility and offers suggestions to better manage payments in the face of these uncertainties.