China’s decision to double the trading band of its currency has revived talk of it becoming a potential alternative to the U.S. dollar as reserve currency. However, the move will have little meaning for investors in the near term.
Investors should think about currency risk as might approach a dessert menu, according to the head of currency implementation with Russell Investments. “When we talk about currency, it’s like we’re talking about pie,” said Ian Toner, speaking at the recent Pension & Benefits Summit in Toronto. “The problem with currency is, you need to know […]
The loonie, buffeted by global events, has been spending some time south of parity lately. Just long enough for Canadians to start thinking about rejigging their investment and business strategy.
As the U.S. tries to disentangle itself from its economic woes, China has slowly started to weave a web around the global currency system.
Russell Investments Canada is expanding its U.S. Dollar Hedged Series, which is targeted to investors who have U.S. dollars but want to maintain exposure to key Canadian and international asset classes while minimizing risk associated with movements in the Canada/U.S. exchange rate.
The historic decision by Standard & Poor’s to downgrade the U.S. credit rating may have created scandalous headlines, but currency markets were quick to price it in—shockingly in favour of the greenback. And that trend may continue, according to industry participants in the Canadian financial market. From a currency standpoint, the first-ever downgrade of the […]
Horizons Exchange Traded Funds and BetaPro Management have announced the launch of the Horizons Australian Dollar Currency ETF, which offers investors direct access to foreign currency investing. “The Australian dollar has been one of the top performing currencies over the last couple of years, benefitting from attractive interest rates, the country’s rich natural resources and […]
Commodities markets have been plagued with volatility over the past few months. A tactical move, say experts, would be to peel off commodity exposure and reallocate funds to high yield bonds. “It makes sense to pare back some exposure to commodities,” says Alfred Lee, vice-president and investment strategist, BMO Asset Management. “Over the course of […]
Canadian investors in global bonds should keep an eye on recent events in Europe, but they shouldn’t lose sleep over the U.K. budget or the fall of Portugal’s government, according to fixed income experts. However bond pundits admit that tight fiscal policies are a negative for currencies. “The bad news is that historically when you […]
It might be the riskiest financial forecast of all: currency. The stakes are a huge. Get it wrong, and your foreign content allocation can implode. Get it right, and you'll enjoy a multiplier effect on those out-of-county assets.