Corporate foreign exchange news

Published by Mark Smith-HalvorsenGlobal currency-trading hedge funds have lost substantial sums on the depreciation of the euro, new data from Chicago-based Hedge Fund Research shows. The figures revealed that macro funds, so named because they trade in line with macroeconomic trends, lost two per cent during the first two months of 2010, with major firms including Brevan Howard Asset Management, Moore Capital Management and Tudor Investment Corp among those losing out.Speaking to Bloomberg, Philippe Bonnefoy, chairman of Cedar Partners Investment Management, said that there is no place for "conviction trades", or very large bets, in the current economic environment."If you can't do that, and you are a long-term investor, you aren't making money," he explained.While the euro remains depressed, forex risk management strategists are once again turning their attention to the pound, recognising that the UK, with a debt ratio similar to Greece's, could witness further instability.The pound closed below $1.50 yesterday (March 9th) and has failed to recover this morning.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site