Ron Leven, Thomson Reuters
"Markets are influenced by so many different factors and there are so many currency pairs that relative value can often be hidden and take time to find."
New York and London - Thomson Reuters has announced the launch of a new app on its desktop Thomson Reuters Eikon that uses unique data visualisations to help FX traders pinpoint value in currency markets across multiple value metrics and multiple currency pairs in real-time.
The huge amount of outright and structured data surrounding FX markets makes it difficult and time-consuming for market participants to find relative value trades. The Eikon currency value tracker can help market participants to isolate the currency pairs that may offer better opportunities to execute trading strategies. For hedging they can also determine which structures are potentially more cost effective given the shapes of interest rate and volatility curves.
Thomson Reuters has created the new currency value tracker by combining the visualization technology available in Thomson Reuters Eikon with proprietary metrics that can help uncover relative value opportunities. Participants can track spot, implied volatility, realized volatility, risk reversal skew, static carry, annualized net carry, spot price return, total return and various ratios. They can also evaluate historical data via heat maps, performance rankings and scatter plots in order to identify apparent inconsistencies in market pricing.
"Just because a factor such as an interest rate is high does not necessarily mean it is good value. Markets are influenced by so many different factors and there are so many currency pairs that relative value can often be hidden and take time to find," said Ron Leven, head of Eikon economic and foreign exchange content at Thomson Reuters. "With Thomson Reuters Eikon we are committed to providing an intelligent and intuitive user experience that enables financial professionals to quickly identify trends and signals in the plethora of market data. The new currency value tracker uses our unique combination of data visualization and value metrics to provide insight to our customers."