Canada's FX hedging world likes USD, AUD, but not EUR, says the Bank of Canada in its annual survey of banks active in FX markets. Institutional firms still represent the majority of client hedging activity, while export FX activity is largely based on corporate volumes. Interestingly enough, the lack of CAD volatility has, in some instances, led to a decline in rebalancing activity. And USD continues to be the benefactor of increased corporate/institutional hedging, with some AUD getting interest from institutional investors. Given Europe's ongoing fiscal problems, the appetite for EUR hedging diminished in 2012. FX exposure to Latin American and Asian EM currencies were up, while exposure to Eastern European currencies continued to decline.
Find us on Google+
No comments:
Post a Comment