FXCC Vision

FXCC has in the past and continues to establish successful relationships and strategic, private partnerships with our customers. Each customer is unique and from the commencement of each consulting engagement, FXCC believes in working closely with our clients, providing expert guidance and encouraging an open and ongoing dialogue. Our lasting relationships are a testament to FXCC’s strong commitment to provide common sense and flexible solutions timely and cost effectively.

FXCC is committed to providing corporate financial stewards with timely, professional solutions that mitigate, often eliminate, foreign exchange risk.  From discovery, assessment and creation of optimized FX strategies; to implementing strategies tailored specifically for each client and monitoring them through to full realization, FXCC provides the solutions that help drive increased revenue and cost certainty.

Foreign Exchange Market...Defined

The Foreign Exchange Market is easily the largest financial market in the world with a daily turnover in excess of 3.7 trillion dollars (and rising).  Participants are varied, worldwide and include Central banks; Commercial and Investment banks; Pension and Hedge funds; Speculators and Corporations. We are foreign exchange mitigation experts with our services primarily geared toward the Corporate client.

What Is FX Exposure or Currency Risk?

Foreign exchange risk is the possibility of a monetary loss arising as a result of unfavorable foreign exchange rate variations. Exposure is the amount of revenue or expense that is subject to these variations.  

Consequently, any company that exports or imports will, unless protected, have a revenue or expense exposure to foreign exchange risk.

The conversion of a foreign currency to the company’s base currency, for a commercial import or export transaction, is the most common of all risk. If the company’s future foreign currency revenues or expenses are not hedged, the base currency value will fluctuate with currency rates and a cash flow loss can result.

The revenues and expenses of a company can also be at risk when a foreign investment or marketing decision is made.

Finally, strong competitors can be created overnight based on their choice of currencies.

Why Manage These Exposures?

Traditionally, foreign exchange rates are very volatile. It is not unusual for certain commonly traded currencies to vary as much as 12% over the course of a calendar year. These fluctuations will directly affect the bottom line of your company, unless protected.

To illustrate, consider this table that calculates the impact of the Canadian exchange rate against the US dollar (USD/CAD), for various amounts of exposures in USD.

What We Can Do To Assist...

• Identify and quantify your company’s foreign exchange exposures.
• Establish your risk profile based on your stated policies, objectives and overall profitability.
• Develop the optimum foreign exchange risk strategy.
• Assist client managers to implement the strategy.
• Continuously monitor the markets through systems such as Reuters, Bloomberg, etc.
• Provide daily market comments and regular currency and interest rate forecasts.
• Provide risk management reports on a regular basis.
• Periodic revaluation of the risk management process.

Check Out Our Commentary

Early each business day, FXCC President, Founder & Chief Strategist - Michel Gaudette, publishes his thoughts and forecasts on the currency markets to FXCC clients by email. This communication also includes pertinent economic data.  This information provides each client representatives a summary of market indicators that may trigger discussion relative to their objectives and strategies.  This also may prompt calls from clients to FXCC to help understand issues that may be on the horizon and promotes a continued, open dialogue regarding client strategy and occasional adjustments.

Later each day, this information is posted in this web repository and left there for at least 30 business days.  Please feel free to click from the left menu to review these posts and to see our forecasts against what really happens in the days/weeks to come.