Currency Futures for Investors

Hedge prudently. Speculate astutely.

Investors use currency futures for two reasons: as a risk management tool to hedge their foreign holdings from adverse moves in a foreign exchange rate, or to speculate on the direction of a certain currency relative to another.

The risks that fluctuations in foreign currency can create on portfolio returns have become more obvious in recent years as returns from foreign instruments have been eroded by the strong appreciation of the Canadian dollar. For example, in 2007 alone, while the S&P Composite Index rose in US dollar terms, the sharp increase of the Canadian dollar relative to the US has resulted in negative total returns for Canadian investors. 

Sophisticated clients can use the trusted advice and expertise of the Burak Hannon Brojde Group to create currency neutral portfolios that become indifferent to currency fluctuations.

There are several fundamental determinants of currency values, including the GDP, rate of inflation, productivity, interest rates, employment levels, and a country's balance of payments and current account balances.

We receive and analyze daily research on theses economic indicators and can assist you in devising a strategy to reflect your views on the direction of major international currencies including the Canadian, US, and Australian dollars, Euros, British pounds, Swiss Franc, Japanese Yen, and a host of others.