Publications

"Blog" Posts

Inflation Unveiled: The Power of Interest Rates

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Why are central bank interest rates increasing? On May 11th, we saw the Bank of England increase its key interest rate to 4.5%, its highest rate in almost 15 years, just as the U.S. Federal Reserve and the European Central Bank also increased their interest rates the week before to 5.25% and 3.75% respectively. Inflation […]

Risk of USD/JPY Weakness Seen in the Options Markets

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SUMMARY The next Bank of Japan meeting is scheduled for 16 June which will be the second meeting with new governor Ueda in charge. There is a possibility that the Ueda will make changes to the BOJ yield curve controls. The market is starting to position for the risk of a downward move in USD […]

Understanding FX Hedging: A guide to managing corporate FX risk

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Download PDF WHAT IS FX HEDGING? FX hedging, also known as foreign exchange hedging, is a strategy used by companies and investors to mitigate or reduce the risk of loss due to fluctuations in foreign exchange rates. FX hedging involves using financial instruments or strategies to offset the risk of currency movements that could negatively […]

Q1 2023 Market Report : Should your Hedging Strategy Change?

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It is good risk management to assess a hedging strategy and adapt where necessary as market conditions change. There has been significant change in the first quarter of 2023, so it is a good time to pause and analyze the factors involved in hedging. In this article, GPS will look at EUR, GBP, AUD and […]

FXbeacon: Swim, Bike, Run, Hedge

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The three sports of triathlons are swimming, biking, and running – in that order. Each discipline separately, is a challenge of its own and many people spend their whole lives enjoying the pursuit of a single sport.  However, putting them all together into one race and successfully completing a triathlon requires: assessing your current physical […]

Volatility trends: What can you do to reduce currency risk in 2023?

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Currency traded volatility can be caused by a variety of factors, including economic data releases, political events, central bank actions and geopolitical risks. In 2022 we experienced many of these factors, making the value of currencies rise or fall in relation to others. For example, volatility traded significantly higher last year as the USD strengthened […]

GPS Is Growing In Canada

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We have expanded our seasoned team of Canadian corporate FX advisors by adding five highly accomplished names to the roster: Steve Kulchyk, James Lei, Jared Burns, Don Edirisinghe and Xingli Mo. They bring decades of experience advising Canadian business operating internationally on how to successfully hedge market risk, create certainty, save time, and protect profits. […]

Hedging Strategies For Year-End

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As the year-end approaches, foreign exchange markets in 2022 have reinforced the need to practice solid risk management. It is easy to get distracted by the season at this time of year, but our analysis shows that markets still move and should be treated the same as any other time of the year. In this […]