FxWirePro: Bullish SEK against EUR covered put and NZD vanilla put
Apr 06, 2017 13:13 pm UTC| Research & Analysis Insights & Views
SEK has been one of the underperformers in G10 this week, weakening in sympathy with EUR. There isnt an immediately identifiable catalyst for the underperformance, although wage negotiations yielded an outcome that was...

FxWirePro: What drives loonie’s vulnerability - Stay short CAD vs AUD and USD
Apr 06, 2017 12:57 pm UTC| Central Banks Insights & Views
The monetary policy divergences driving USDCAD sharply higher the past two weeks were only half surprising. To be sure, the recent sharp rise in US yields driven by hawkish Fed speech came as a surprise to markets. The...

Apr 06, 2017 12:51 pm UTC| Research & Analysis Insights & Views
OTC outlook: Please be noted that it seems to be ideal time for the writers of overpriced call options as you could observe the negative shift in risk reversal flashes in 1m tenors, whereas we see neutral changes to the...

Bank of England likely to hold rates well into 2018 and probably beyond - Rabobank
Apr 06, 2017 11:08 am UTC| Insights & Views Economy Central Banks
Despite signs of a slight slowdown, UK economic growth has held up much better than expected since the Brexit referendum. The PMIs for manufacturing, construction and services published this week suggest Britains economy...

FxWirePro: European recovery on stage via FX options ahead of French polls
Apr 06, 2017 10:31 am UTC| Research & Analysis Insights & Views
The European recovery theme has become increasingly mainstream in recent weeks as continued Euro-area growth out-performance intersects with moderating political risks. Last week, we opened an outright long EUR/USD...

Apr 06, 2017 10:17 am UTC| Research & Analysis Insights & Views
One sticking point is that 5Y USD/CHF forwards are realizing 1.5-1.8 pts. below 5Y ATMs. This is not a direct impediment to vol buying since gamma contribution to long-expiry option P/Ls is miniscule, but the implied ...

FxWirePro: Long-dated USD/CHF vol screening cheap - Carry vol ratios of ATMF straddles
Apr 06, 2017 09:26 am UTC| Research & Analysis Insights & Views
The back-end (5Y and out) USDCHF vol is beginning to approach deep value levels. While not quite through Q214 lows that we flagged in reference to USDJPY last week, 5Y ATMs have cratered in excess of 3 % pts and broken...