Corporate Hedging Survey: More Hedging Less Hiring

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• There remains a broad consensus among G3 corporates that JPY should depreciate notably in 2010 and 2011: nearly 80% of respondents look for USD/JPY to move higher in coming years.
• EUR/USD forecasts are mixed but the majority of respondents expect the EUR to depreciate modestly for the remainder of 2010.
• Firms increase 2010 hedge ratios relative to previous March surveys. US corporates appear to shift current year hedging activity later in the year, all while increasing year-ahead coverage.
• Firms are postponing hiring globally, US firms are more optimistic while Japanese firms are least likely to increase hiring soon.

ENDS