FX Structures for the Last Mile

No one's logging off yet.

As we enter November, positioning across the buy-side increasingly reflects year-end considerations, with an emphasis on preserving performance rather than extending risk. In this context, FX remains a critical fulcrum for both portfolio hedging and incremental alpha generation, heightening the importance of well-defined, implementable trade expressions.

While the broader macro backdrop has stabilised relative to mid-year, several policy and event-related catalysts still lie ahead, warranting a selective approach to risk deployment into the close. Against this backdrop, we highlight trade structures that, in our view, are resilient across a range of outcomes.

Our focus centres on three areas: evolving UK fiscal dynamics, scope for a near-term tactical rebound in the US dollar, and continued downside in the yen.