JULY 2021

The FX Report

FX Futures | FX Options | FX Link
 

In this edition, keep up with our latest product developments, learn about the forces driving them. Stay connected to the changes in our market and the wider FX marketplace.

  • 28 Apr 2021
  • By CME Group

Stay connected to event risk and economic developments

MACRO

The Uncertain Path of Inflation

There are two narratives on the current rising inflation: it will be transitory as expected by the Fed or it might stick. In this video, Economist Erik Norland discusses the divergent narratives.

Watch

MICRO

Mexican F-TIIE Futures and FX Hedging

The newly launched Mexican F-TIIE Interest Rate futures from CME Group provide a risk management tool for overnight Mexican peso interest rates. This paper examines cross-currency interest rate trading strategies using the F-TIIE futures contract and the opportunities for hedging the FX exposure created using CME’s MXN/USD Foreign Exchange futures contract.

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OTC Trading Flexibility + Cleared Liquidity

This article explores why there is a growing appreciation of how the efficiencies of central clearing can be equally applicable to parts of the FX market, as they have been in other financial products, and why more participants are voluntarily choosing to trade listed FX as a complement to OTC trading as the most efficient mechanism to access the benefits of clearing, while retaining the flexibility they expect and require.

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Increased Hedging Opportunities in Australian Wheat Trades

This article explores Australia's role in the global wheat trade, and how market participants are managing their FX exposure to take a fully-hedged position.

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