Publications

"Currency Risk" Posts

FXBEACON: TENNIS | SAILING | FX | PRIVATE EQUITY
August 9, 2023
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Eric Meyer
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Seven years ago, my wife took the liberty of signing me up for a tennis team without my knowledge. She thought I needed a hobby to balance the demanding world of finance, which absorbed most of my time.  After getting past some growing pains, I fell in love with the sport. Then, last year I […]
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Anticipated Surge of Cross Currency Movement
June 13, 2023
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Michael Buck
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Download PDF SUMMARY Throughout 2022, the major currencies became closely correlated as the US dominated market movements.  This was driven by the Fed’s tightening of monetary policy, with other countries following suit. We can see in the chart below, the USD strengthened against all major currencies and as a result there were limited movements in […]
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50-Years of Black-Scholes: Nobel Victory, Options Revolution
May 26, 2023
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Michael Buck
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  C=S N(d1​) − Ke−rt N(d2​)   In the annals of financial history, few accolades hold as much prestige and recognition as the Nobel Prize.  Such is the case with the Black-Scholes options pricing model, which achieved the remarkable feat in 1997 thanks to the persistence of a select group of professionals who saw its […]
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Inflation Unveiled: The Power of Interest Rates
May 25, 2023
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Julien Dufour
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Why are central bank interest rates increasing? On May 11th, we saw the Bank of England increase its key interest rate to 4.5%, its highest rate in almost 15 years, just as the U.S. Federal Reserve and the European Central Bank also increased their interest rates the week before to 5.25% and 3.75% respectively. Inflation […]
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Critical Factors Affecting Operating Costs in the Resource Sector
April 21, 2023
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Contributors
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Operating costs in the resource sector are expected to ease in 2023 due to volume improvements, yet inflationary pressures remain with labour costs putting upward pressure on operating expenditure (OPEX). At the recent Asia Pacific Carbon Conference (APCC) in Newcastle, Australia – coal producers openly discussed the increasing cost of operating mines in Australia. The […]
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Q1 2023 Market Report : Should your Hedging Strategy Change?
April 21, 2023
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Michael Buck
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It is good risk management to assess a hedging strategy and adapt where necessary as market conditions change. There has been significant change in the first quarter of 2023, so it is a good time to pause and analyze the factors involved in hedging. In this article, GPS will look at EUR, GBP, AUD and […]
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FXbeacon: Swim, Bike, Run, Hedge
February 28, 2023
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Tyler Thurgood
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The three sports of triathlons are swimming, biking, and running – in that order. Each discipline separately, is a challenge of its own and many people spend their whole lives enjoying the pursuit of a single sport.  However, putting them all together into one race and successfully completing a triathlon requires: assessing your current physical […]
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Finance Digest – 5 FX Metrics Your Business Should Be Tracking
February 17, 2023
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Steve Kulchyk
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Businesses dealing internationally in multiple currencies are often met with the task of creating their own FX risk management strategy in order to limit losses to their bottom line from currency fluctuations. As such, the FX brokerage industry has emerged and thrived for the past 2+ decades, with many of them helping corporations develop and […]
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