A double deficit and a falling pound

As many economists have noted, a key problem for the UK is its negative international investment position (IIP), which fuels a large part of the country’s current account deficit. This is derived from the difference between total assets and liabilities of rest of the world holdings (RoW), and constitutes a net asset position of £269bn (in favour of foreigners).

Continue reading: A double deficit and a falling pound

As many economists have noted, a key problem for the UK is its negative international investment position (IIP), which fuels a large part of the country's current account deficit. This is derived from the difference between total assets and liabilities of rest of the world holdings (RoW), and constitutes a net asset position of £269bn (in favour of foreigners).

Continue reading: A double deficit and a falling pound

Brexit and Britain’s dutch disease

The pound is up on the back of Theresa May agreeing to opposition demands for “a full and transparent” Brexit debate in parliament before activating Article 50.

But even if it wasn’t, would it really be that bad for the British economy? Let’s pause for some perspective maybe?

Continue reading: Brexit and Britain’s dutch disease

The pound is up on the back of Theresa May agreeing to opposition demands for "a full and transparent" Brexit debate in parliament before activating Article 50.

But even if it wasn't, would it really be that bad for the British economy? Let's pause for some perspective maybe?

Continue reading: Brexit and Britain’s dutch disease

“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