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The ECB meeting last week went mostly according to the script, with a 25bp cut and significant downward revisions to the bank’s view on Euro Area economic growth.

In this article, we present a structured approach to assist fund managers when acquiring assets denominated in a currency other than the fund's base currency to evaluate their Foreign Exchange (FX) exposure and assess if and how to manage its currency risk.

G10 currencies all traded in a holding pattern last week, as investors await the December meetings of the key central banks, including the ECB this week and the Federal Reserve and the BoE the next one.

The blog discusses the approach funds with assets denominated in currencies different from their base currency take to hedge Foreign Exchange (FX) risk related to fund exits. It highlights why EUR private funds with USD assets are moving from rolling short-dated forwards to longer-dated FX hedging.

The so-called Trump trade suffered a meaningful reversal last week. US Treasury yields retreated, possibly on relief that US inflation data came out largely as expected.

The ‘Trump trade’ took a bit of a breather last week as bargain hunters emerged to shop for its victims, including Treasury bonds and selected EM currencies that had been cheapened by the post-election selloff.

There were divergences in the so-called Trump trade last week. Read more via the report below.

Market uncertainty over the US election was resolved in the most clear cut way imaginable, as the Republicans swept not only the presidential contest but also the House and the Senate. Read more via the report below.

The US dollar has rallied against almost every currency in the world overnight, as investors digest the news of the big outperformance in the polls from Donald Trump.

Markets are bracing for the biggest event risk of the year this week, with Tuesday’s US presidential election to potentially be one of the closest races in recent history. Read more via the report below.