Thomson Reuters have launched new app on its flagship desktop Thomson Reuters Eikon that uses unique data visualisations to help FX traders quickly pinpoint value in currency markets across multiple value metrics and multiple currency pairs in real-time.

Thomson Reuters Eikon is a solution for consuming real-time and historical data, enabling financial markets transactions and connecting with the financial markets community. Its award-winning news, analytics and data visualization tools help its users make more efficient trading and investment decisions across asset classes and instruments including commodities, derivatives, equities, fixed income and foreign exchange. Thomson Reuters Eikon is a leading desktop and mobile solution that is connected, informed and intelligent, and provides access to a messaging community of over 210,000 financial professionals.

Using data visualization problems to understand the market

The huge amount of outright and structured data surrounding FX markets makes it difficult and time-consuming for market participants to find relative value trades. The Eikon new currency value tracker enables market participants to rapidly isolate the currency pairs that may offer better opportunities to execute trading strategies. For hedging they can also easily determine which structures are potentially more cost effective given the shapes of interest rate and volatility curves.

The new currency value tracker combines the visualization technology available in Thomson Reuters Eikon with proprietary metrics that help uncover relative value opportunities, see figure below.

Visualization combined with FX metrics

Source & Copyright©2015 - Thomson Reuters 

 

Participants can track spot, implied volatility, realized volatility, risk reversal skew, static carry, annualized net carry, spot price return, total return and various ratios. They can also evaluate historical data via heat maps, performance rankings and scatter plots in order to identify apparent inconsistencies in market pricing.

Thomson Reuters comment: “Just because a factor such as an interest rate is high does not necessarily mean it is good value. Markets are influenced by so many different factors and there are so many currency pairs that relative value can often be hidden and take time to find,” said Ron Leven, head of Eikon economic and foreign exchange content at Thomson Reuters. 

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CTMfile take: Data visualization will be needed increasingly in the ever more complex FX markets. This app will help to overcome the problems of the huge amount of data on the FX market, traders will be able to do simulations using the new app to look at different hedge structures and see what works best.