FxWirePro: Aussie seems vulnerable as RBA welcomes currency depreciation to target inflation - Uphold AUDJPY covered put for hedging

Mar 02, 2018 08:50 am UTC| Research & Analysis Insights & Views

AUD is suffering as a result of disappointing capex data and falling commodity prices early today. Since early February the Australian currency has been amongst the big losers within the G10 universe anyway, as it is...

Fitch: Proposed US Tariffs to Have Limited Impact on China Metals Producers

Mar 02, 2018 08:17 am UTC| Research & Analysis Economy

Fitch Ratings-Hong Kong/Shanghai-March 02: Plans by the US to impose import tariffs of 25% on steel and 10% on aluminium will have limited impact on the Chinese producers of these metals as the US is not a significant...

FxWirePro: Hawkish BoC unlikely to hike this season on Canadian GDP but constructive through 2018 - CAD/JPY options strips on its well functionality

Mar 02, 2018 07:33 am UTC| Research & Analysis Central Banks

Canadian GDP data is scheduled to be announced today, these prints on MoM basis likely to shrink a bit from previous 0.4% to 0.1% as per the consensus. While QoQ basis likely to post 2% which is well in line with the...

Can it be a revival for South Africa after brand new cabinet or political risk premium still lingers around ZAR?

Mar 01, 2018 12:44 pm UTC| Research & Analysis Insights & Views

The South African budget data for January that was published yesterday once again confirmed the urgent need to consolidate public finances. The seasonally adjusted data illustrated a budget gap of approx. ZAR 41bn., thus...

FxWirePro: Gold OTC setup – Buzzing delta-hedges seem imminent ahead of Jerome Powell’s testimony

Mar 01, 2018 12:20 pm UTC| Research & Analysis Insights & Views

The yellow metal price would usually be sensitive to moves in both UST rates and USD. The gold prices would be more expensive for holders of foreign currency on robustness of dollar, while a rise in U.S. rates lifts the...

FxWirePro: Intricacies of Euro currency sentiments ahead of Italian politics

Mar 01, 2018 11:02 am UTC| Research & Analysis Insights & Views

At first blush, the currency markets disinterest in the Italian election creates both incentive and opportunity to hedge the tail-risk of a non-mainstream government (refer above charts). After all, the euro is now...

FxWirePro: Forward vols hedging for euro crosses ahead of Italian polls

Mar 01, 2018 09:04 am UTC| Research & Analysis

In our view, FX options markets complacency and the timing (only one more week to go) make for a good setup to for adding last minute, low downside risk hedges. Based on the reaction to past elections, and taking note...