A high amount of SMEs with considerable operations in foreign currencies don't protect themselves against FX risk. These companies, many of which record revenues of around $200 million per year, simply don't approach FX management as there is no specialist in-house FX risk manager. Instead, they expose themselves to the whims of the currency market.
The U.S. dollar was lower against most major pairs on Friday. The greenback dropped as investors flocked to safe havens away from the U.S. currency. Trade war concerns and its impact on U.S. companies have triggered a massive sell-off in equities. The U.S. dollar is on the back foot despite strong growth as evidenced by the release of the flash GDP for the third quarter that showed a 3.5 percent gain beating expectations.
A raft of new geopolitical events, like, among other things, the U.S. tax law reform, a NAFTA exodus, and a Brexit reboot in Europe, could be a taxation game-changer for companies doing business overseas. That's especially the case as a new year beckons.
Overall, the global corporate tax landscape has changed dramatically in the aftermath of U.S. tax reform passed and signed into law at the end of 2017, and as its enactment creates ripples across the globe, even in late 2018.
The U.S. dollar is mixed on Friday. Investor’s appetite for risk rose and safe haven currencies (JPY and CHF) fell while positive China and Brexit news saw the NZD, EUR, GBP and AUD advance against the USD. The Canadian dollar was dragged down in the last trading day of the week after softer than expected retail sales and inflation data.
With NAFTA on the way out after months of intense negotiations, the new United States-Mexico-Canada Agreement (USMCA) trade agreement is coming to fruition soon in advance of a country-by-country vote in a few weeks.
In this article, we focus on the key takeaways for CFOs to get up to speed on the economic impacts for consumers and businesses, the major financial points, and geopolitical implications of the new USMCA agreement.
The U.S. dollar was mixed Friday. The GBP deserves a special mention as positive Brexit rumors pushed it 0.61 percent higher against the USD. The American currency lost momentum as the U.S. non farm payrolls (NFP) headline jobs number disappointed with a 130,000 added positions, instead of the forecasted 188,000.
Treasury departments preparing for 2019 can learn from some key lessons by looking back at 2018 currency movements and wider economic developments.
In this article, we focus on six separate focus areas to help your treasury department hit the ground running in 2019 with a value-added foreign exchange and currency analytics strategy in place.