Vive la Revolution
2017 is a critical year for European politics not to mention the triggering of Article 50 and Trump.
In the current low yield environment many clients have been looking to improve the return on their funds held on deposit. Regardless of the currency held, for clients with an ultimate requirement to convert funds and also an appetite to maximise yield, a Dual Currency Deposit may be of interest.
An FX forward is an agreement to exchange an amount of currency at a defined rate at a defined time in the future. This can be used to exactly hedge your FX requirements. Forwards can be booked for delivery either on a fixed date or with flexibility within a delivery window.
Hedging Solutions provide the certainty that your FX requirements are hedged at a guaranteed rate, which may be improved depending on what happens to the market rate over the life of the transaction.
Outperformance solutions do not provide a guaranteed rate or amount. However they do offer the opportunity to achieve better-than-market FX rates under certain defined conditions. If these conditions are not met (for example a trigger level is hit) the outperformance trade may disappear and you will need to deal in the spot market at the prevailing rate.