There is no shortage of advice or opinions on where exchange rates are going. However, for those responsible for deciding how to manage their currency exposures, the elephant in the room is obvious: in the medium to long-term, nobody can reliably predict the currency market.
Despite this, currency purchasing decisions are still frequently based on a ‘best guess’ and therefore companies remain materially vulnerable to currency risk.
At Alpha, we solve the problem of unpredictable exchange rates by developing strategies to balance the three major variables you have to consider when hedging: How much? How far forward? And when?
In doing so, we help you find the balance between being over and under hedged, and give you greater control over the impact exchange rate volatility has on your objectives and commercial landscape.
With a strategy in place, many clients will have an element of discretion over when they buy currency. Whilst evidence shows us that long-term market predictions are inconsistent at best, we recognise that opportunities do exist within short time frames and it’s possible to capitalise on these to optimise returns. To do this, our dedicated analysts provide tailored and proactive insights, guiding market entry up to three months into the future.
We provide a range of products for executing your strategy, focused on maximising hedge effectiveness whilst reducing costs. Indeed, we work with a number of clients who do not require our consultancy services, but still choose us based on the effectiveness and competitiveness of our execution capabilities.