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AtlasFX Quarter in Review

Masks may be off, but risks are on!  While Covid concerns have started to recede for many, the first quarter of 2022 certainly brought new things to worry about, with the War in Ukraine, continued increasing inflation, and renewed volatility across many markets.     


As we alluded to in the last newsletter, the ability (or lack thereof) to raise interest rates in response to inflationary pressures in various countries has had a major impact on their currencies.  The market realizes that Japan can’t/won’t raise interest rates to nearly the same levels of other countries, and the JPY has weakened considerably to start off 2022 as a result.  The sharp weakening of the RUB in response to the war and associated sanctions was short-lived, due to both internal capital controls (forced conversion of EUR and USD to RUB for Russian commodity and energy exporters) and a sharp interest rate increase in Russia.


Continued supply chain disruptions in China, and the relative impacts on food and energy inflation that is looking to be far from transitory will continue to drive FX volatility for the foreseeable future.  As always, we are here to help you identify and understand your FX exposures, and then properly manage them, from beginning to end.


Early 2022 Highlights


Interview: Empowering FX Data Masters

In this video, NeuGroup founder and CEO Joseph Neu interviews AtlasFX’s Scott Bilter, co-founder and CFO to discuss a wide variety of topics. 

What is the AtlasFX backstory? Why are Treasury and FP&A sometimes like ships passing through the night, and how can this be fixed? Why are so many Treasury solutions approaching their customers problems the wrong way? 

For the answers to these questions and more, click below:
Empowering FX Data Masters

NeuGroup members debate AtlasFX vs FIREapps

In yet another informative peer session at the latest NeuGroup meeting, FX Risk Management groups broke out into companies familiar with both solutions and reported back to the entire group.  Not sure this ended up being much of a debate, as we don’t think we can put it any better than one of our customers: 

“When we talked with those guys, we just felt like they were absolute Subject Matter Experts when it came to in-the-trenches trying to explain month-end results.  There wasn’t a scenario where they said ‘oh, we need to get back to you, we’re not quite sure what you’re describing or we’re not really 100% on the answer exactly.’  They just knew everything.  In fact, they were correcting us. ‘Actually, not only do we know the answer, but this is what you’re doing wrong here, let us improve this for you.’ It was just a very good experience overall.”


Carry Trade - Q1 Review and Q2 Outlook

If you had invested in the carry trade for Q1 based on our top three recommended currencies, you would have done quite well.  We noted in our last Carry Trade Outlook that the best risk adjusted return for Q1 ’22 looked to be in CNY, BRL and MXN – the average return during Q1 for these three currencies was over 8.4%, significantly outperforming the vast majority of stocks, bonds and other asset classes during the quarter.  Check out the complete review and outlook now.


AtlasFX understands all organizations have unique needs. Request a demo or just ask a question. I will be happy to address them all.


Keith Henthorn

Cell +1.201.414.6991

Atlas Risk Advisory Inc. 

Leaders in FX Risk Management


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