TV

John J Hardy
The US dollar is generally stronger across the board this Monday. Saxo's John Hardy looks at the major FX pairs that could be affected.
Article / 29 July 2014 at 8:20 GMT

Saxo FX Carry portfolios: Gains despite Kiwi beating

Head of Macro Strategy / Saxo Bank
Denmark
By Mads Koefoed

Performance: The USD-denominated World Carry portfolio delivered another positive return in the seven days ending yesterday, the fourth in a row. This time the portfolio, which we track directly, returned 0.5 percent following a gain of 1 percent last time. The run-up in recent weeks has mostly closed the remainder of the drawdown though there is still a gap of 3.4 percent to cover. Since inception in October 2013 the portfolio has returned -3.2 percent having been down more than 14 percent at one point earlier in 2014.

Performance

Most of the positions contributed positively to this week's performance, but a roughly 2 percent nosedive in NZDUSD saw this position subtract quite a bit for overall performance at -1 percentage point. The New Zealand central bank (RBNZ) talked down the currency last week giving guidance which was much more dovish than expected.

Contributions

The next performance update will take place on August 5 at 08:00 GMT while the next portfolio rebalancing takes place on August 19 at 08:00 GMT.

A spreadsheet has been provided for easy calculation of positions.
-- Edited by Clare MacCarthy
Mads Koefoed is head of macro strategy at Saxo Bank.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Investment Research
- Full disclaimer

Show latest activity
Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail