Financial Markets Keep Strong Focus On Low Inflation

Published 11/21/2013, 04:18 AM
Updated 05/14/2017, 06:45 AM

Market overview and outlook

- The financial markets are keeping a strong focus on low inflation at the moment

- ECB has cut its refi rate to a historically low 0.25% in response to declining inflation


Theme: Corporate FX risk

- We discuss the Danske Bank Corporate Risk Model


Interest rate hedging


- We recommend slightly lower EUR hedge ratios - but keep duration on liabilities above the benchmark

- Still value in entering EUR collar structures as an alternative to spot-starting swaps, given the fall in volatility


FX hedging

- USD set to strengthen in 2014 on dovish ECB and tapering of the Fed's bond purchases

- We have adjusted our target for EUR/GBP down and now recommend hedging GBP income via option strategies to retain profit potential

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.