/ Published in Brazil, Brexit, China, Copper, Earnings, EUR, EUR/USD, Europe, France, FundFlows, Performance, Peru

International Flows and FX Risk

Month to date the market had seen the USD adding pressure to some countries, many commodities and some equity markets.  This is on risk that many companies in Asia and LatAm are not ready to hedge.

North American companies and European are more used to than others to understand the FX risk. They usually have more experienced finance department and connection with financial partners that can help to managed their risk management.

Here you can see how the EUR/USD quickly moved from 1.03 to 1.25 in about a year retracing now to 1.14

Here you can see the impact vs Emerging Currencies and can only image the corporates that are not hedging their exposure.

Regarding R Option, tomorrow we will be closing risk and most likely collecting all the premium. Q3 Earnings is expected to be good. Current interest of World Equities is not being registered at current levels by the Funds Flows that move to FX or cash in the first two weeks of the month.

Here you can view the World Equity Indexes YTD

 

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