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FX Indices

Deutsche Bank offers a wide range of tradeable FX Indices and commits to provide round the clock liquidity in them via a broad range of associated derivatives. The aim is to create a simple platform that gives all client types access to single currency, currency area, or currency strategy views at the click of a button. We can quanto index payouts into most currencies generating a single cash flow at each coupon date or at maturity. Please see the relevant index information.

Why Trade DB FX Indices?

Simplicity - ability to trade a basket of up to 10 currencies at the click of a button around the clock.
Operational efficiency - credit, funding, booking and risk management of a portfolio of spot trades is done in one transaction, with 1, single currency cash flow at expiry equal to the P/L.
Act as a currency benchmark - our FX Indices can act as a benchmark to hedge a portfolio of assets or to express a view about how a country's macroeconomic outlook will affect it's currency.
Hedging - if you have exposure to multiple currencies hedging them simultaneously via options rather than individually will be significantly cheaper as you take advantage of the correlation.
Speculating - a position in a basket of currencies will always provide diversification benefits in terms of being less volatile.

Deutsche Bank Guide to Currency Indices

The Deutsche Bank Guide to Currency Indices, the definitive guide to currency investing through FX indices.

Highlights include:

Comprehensive coverage of the Deutsche Bank suite of FX index products, from trade-weighted indices, to Harvest, dbCR and the FXSelect Platform
New research-driven pieces on the TWI's, CVIX and EM Asia policy baskets
Appendix section including all index construction details and historic returns

db Currency Returns Index

The DBCR is an investable index that captures the long term systematic returns available by investing in the world's currency markets.

db Currency Harvest

The Deutsche Bank Currency Harvest Indices track the performance of a portfolio that systematically invests in a diversified basket of high yielding currencies, funded by going short a diversified basket of low yielding currencies.

Contact

For more information about our products and services, or to locate a Sales Team member for a specific product or region, please contact us at
gffx.gfx@db.com

What's New?

Industry Comment

(Extract from FX Blueprint, September 09)

Yen is back
Maintaining our bias to be contrarian, we think the yen may end up being the biggest winner against the dollar. It has yet to significantly overshoot against the dollar, unlike every other G10 currency. Real yields are moving in its favour and nominal yields versus the US are negligible. The twist this time compared to 2002-2007 is that intervention may be less forthcoming thanks to a new party being in power in Japan and the likely influence of the US auto industry on US tolerance of any intervention.

Euro marches on as the dollar carry trade returns
The willingness of the Fed to always cut on any whiff of a slowdown has been one of the primary sources of dollar weakness over the past eight years. With rates now close to zero and likely to remain so for the next two quarters, the dollar will likely become the choice funding currency over the yen. Even if the Fed was to hike, history suggests that it may not be dollar positive to start with. Risk aversion may not help the dollar much either this time in the absence of dollar shortage issues and US repatriations. A double-dip in the Euro-area would see the euro falter, though that is not our base case. Valuation limits will not kick in until 1.55-1.60, so until then we stay long euro and short dollar TWI.”

To view full report please click here.

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