Derivs - FX

TD Bank Financial Group has plucked Calyon’s head of foreign exchange exotic derivatives trading Stephane Coquillaud.

Stephane Coquillaud, head of the foreign exchange exotic derivatives trading desk at Calyon in London, left the firm last week.

With market uncertainty as to how the Indian authorities will tackle the recent spike in Indian rupee inflation, fx strategists at the Royal Bank of Scotland have recommended investors buy USD call/INR put six month at the money forwards.

Euro calls against the U.S. dollar have taken center stage in fx markets this week as the greenback weakened in spot and some looked to position for longer term dollar weakness.

The euro weakened slightly against the dollar today and option flows were thin as fears of a slide going into the weekend were dispelled following the G8 meeting.

Vietnam’s faltering economy has seen the dong swoon against the U.S. dollar in the non-deliverable forward market this past week, as investors fear the specter of inflation.

The Royal Bank of Scotland intends to break into the over-the-counter inflation derivatives market in Asia.

The U.S. dollar’s upward grind is prompting investors to buy short-dated yen puts, taking a punt the U.S. economy will prove more resilient than expected.

The recent surge in litigation by Indian corporates burnt by fx contracts running against them has market players fearful that the Reserve Bank of India may come down hard on the provider side by further tightening sales practices.

Investors are locking in short dated euro puts against sterling struck at GBP0.7875 this week as the outlook for the eurozone economy gets gloomier.

Asia fx strategists are advising investors to short the U.S. dollar and go long Japanese yen via dollar puts.

Currency traders and strategists are noting an uptick in interest around options on fx volatility swaps, as another way to play increased volatility.