BoC and BoJ maintain status quo, FxWirePro upholds ‘Option Strips’ for CADJPY trading and hedging

Mar 09, 2018 06:42 am UTC| Research & Analysis Central Banks Technicals Insights & Views

Canadian and Japanese central banks have maintained status quo in their monetary policies this week. The Bank of Canada held its overnight rate at 1.25% on March 7th 2018, following a 25bps hike in the previous meeting,...

BoC and BoJ maintain status quo, FxWirePro upholds ‘Option Strips’ for CADJPY trading and hedging

Mar 09, 2018 06:42 am UTC| Research & Analysis Central Banks Technicals Insights & Views

Canadian and Japanese central banks have maintained status quo in their monetary policies this week. The Bank of Canada held its overnight rate at 1.25% on March 7th 2018, following a 25bps hike in the previous meeting,...

FxWirePro: Do Chinese FX reserves and exports pose trade war threats? FX derivatives to hedge EUR/CNH ahead of ECB

Mar 08, 2018 12:45 pm UTC| Research & Analysis Central Banks Insights & Views

Chinas FX reserves declined by USD27bn in February, the first monthly drop since January 2017. Interestingly, the market does not see this as a reflection of capital outflows, because of two reasons: the currency was...

FxWirePro: Bid 1m risk reversals and IV skews to hedge USD/EUR/CHF ahead of Swiss and European central bank

Mar 08, 2018 11:55 am UTC| Research & Analysis Central Banks Insights & Views

So what is happening with the euro? There has been relatively little news on the European currency over the past weeks. This is partially due to the fact that the FX market is currently focussing on the protectionist...

Moody's: ECB's changes to covered bond haircuts will increase CPT issuers' repo funding costs

Mar 08, 2018 08:44 am UTC| Research & Analysis

Changes to the haircuts that the European Central Bank (ECB) applies to covered bonds posted by their issuers as collateral in repo transactions will increase the cost of repo funding for issuers of conditional...

FxWirePro: EUR/GBP OTC setup indicates diagonal options straps as better hedging vehicle ahead of ECB

Mar 08, 2018 08:25 am UTC| Research & Analysis Central Banks Insights & Views

As the ECB edges towards normalization, an undervalued euro has room to rise further, we could foresee bullish scenarios for euro, given that the ECB changes guidance today, heralding an end to QE in Sept and hikes by...

FxWirePro: Relative values construction in euro crosses discounting ECB, NAFTA and oil risk premiums

Mar 08, 2018 07:05 am UTC| Research & Analysis Central Banks Insights & Views

As the ECB edges towards normalization, an undervalued euro has room to rise further, but lets not isolate the factor, instead glance through below driving forces of euros: Bullish euro scenarios: 1) The ECB changes...