Publications

"FX Hedging" Posts

Case Study | How GPS Helped a UK Fashion Retailer Thrive
November 21, 2023
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Romy Humphries
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Download PDF In this insightful interview, we delved into a client case study with Paul, Head of Treasury and Investor Relations at a prominent fashion retailer based in the UK. With a turnover of approximately £900 million per year, this company operates in the competitive world of fashion. Join us as we explore Paul’s experiences […]
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Hedging Strategies for EUR: What’s been effective in the past year?
November 14, 2023
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Michael Buck
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Download PDF In the past 12 months, marked by an initial increase and then a stable phase in the EUR/USD exchange rate, numerous corporate treasurers have been exploring optimal methods to safeguard against currency risk. This article examines how different hedging tactics have fared over this period. For a fair evaluation, a uniform method has […]
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Hedging Strategies for AUD: What’s been effective in the past year?
November 9, 2023
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Michael Buck
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Download PDF The last 12 months, characterized by sharp moves followed by a range-bound period in the AUD/USD, have left many corporate treasurers searching for the best way to hedge their currency exposures. This article analyzes the performance of various hedging strategies over the last year. To facilitate an accurate comparison, we’ve adopted a standardized […]
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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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Comprehensive Guide to FX Hedging for Corporate Risk Management
May 1, 2023
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Romy Humphries
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Download PDF WHAT IS FX HEDGING? FX hedging, also known as foreign exchange hedging, is a strategy used by companies and investors to mitigate or reduce the risk of loss due to fluctuations in foreign exchange rates. FX hedging involves using financial instruments or strategies to offset the risk of currency movements that could negatively […]
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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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