In this update, I want to explain why typical bank FX forecasts are uninformative and why it is extreme events (and their impact on your business) that we should be concerned about.

Derivatives in their most basic form have been documented as far back as Antiquity. Traces of their use can be dated to 600 BC, but are most commonly assumed to have had their first commercial application during the Roman Era (27 BC – 476 AD).

Today is the 100^th trading day (TD) of 2020, so I thought I would run numbers to give perspective on seasonal tendencies for the balance of the year based on an historical back test.

Foreign currency exchange may be affecting your bottom line, but it doesn’t have to.

For Canadian import and export companies, fluctuations in exchange rates can make it challenging to budget up-front costs or determine revenues in foreign currencies. 

If your business deals with international manufacturers, suppliers or overseas employees, chances are you will need to send international money transfers or international wire transfers on a regular basis. It takes an estimated one to three days for an international payment to clear.

Regardless of the size or nature of your company, an international invoice is likely to land on your desk at some point in time. International import and export is becoming commonplace for small and large businesses alike. Perhaps a contractor in Europe specializes in a problem you are facing, or a supplier in Australia has a machine you need for manufacturing. 

When it comes to Foreign Exchange, which one should I go with?

Whether you are importing/exporting goods, making a large purchase or sale in another country, you will encounter the need for foreign exchange services.

Variables that influence currency value

There are many variables that shape a country’s currency value. However, currencies much like any other tradable item are priced based on the laws of supply and demand. Here are some of the factors that impact the supply and demand.