“FX is back,” says FX strategist team

Foreign-exchange trading hasn’t been the best way to express macro views this year — in part because of expensive hedging costs — but BofA Merrill Lynch FX strategists say that’s changing, in a note titled “FX is back for good.”

Luckily for the sellside, it’s not just a one-way trade in global currencies, even if views on the pound haven’t looked terribly diverse lately. (Somewhat related: there’s been plenty of talk of barriers getting hit on bearish GBP/USD knockout options because of the crash, so if you’ve actually experienced that, do email us.)

As of yesterday, here’s where the positioning divide was between hedge funds and real money, from BAML:

Continue reading: “FX is back,” says FX strategist team

Foreign-exchange trading hasn't been the best way to express macro views this year -- in part because of expensive hedging costs -- but BofA Merrill Lynch FX strategists say that's changing, in a note titled "FX is back for good."

Luckily for the sellside, it's not just a one-way trade in global currencies, even if views on the pound haven't looked terribly diverse lately. (Somewhat related: there's been plenty of talk of barriers getting hit on bearish GBP/USD knockout options because of the crash, so if you've actually experienced that, do email us.)

As of yesterday, here's where the positioning divide was between hedge funds and real money, from BAML:

Continue reading: “FX is back,” says FX strategist team