Forex volatility puts focus on corporate hedging

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Wild swings in foreign exchange rates over the past few months have put a renewed focus on corporate hedging in Europe and the US. With volatility expected to remain high in the coming year, many firms are pulling back from complex, cost-reduction hedging strategies towards vanilla instruments with a cap on the downside.

The euro started last year at $1.4583, reaching as high as $1.5990 on April 22. It maintained its strength against the dollar until July before tumbling to $1.2452 by November

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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