FxWirePro: Swedish inflation prints to stimulate EUR/SEK ITM calls
Feb 21, 2018 12:41 pm UTC| Research & Analysis
At its meeting last week Riksbank maintained its rate outlook that projects cautious rate hikes from the second half onwards, despite the fact that it slightly lowered its inflation outlook for this year at the same...
FxWirePro: Intricacies of AUD/JPY covered puts strategy
Feb 21, 2018 12:37 pm UTC| Research & Analysis Insights & Views
In this write how and why selling a covered put in AUD/JPY is emphasized. The underlying pair has been amongst the worst performing G10 pairs since before the US wage data last week (-3.1%). Furthermore, AUD has been by...
FxWirePro: Snippets of low delta EUR puts and low-beta USD play in Asian FX
Feb 21, 2018 11:56 am UTC| Research & Analysis Insights & Views
EURUSD and USDCHF 6M-1Y 35D USD call vols: The belly of G7 vol curves is good value to own in our view since they have lagged the rally in shorter-expiries, and should find buying support from value hunters as relatively...
FxWirePro: WTI crude perspectives – Trade strangle short and hedge via calls spreads
Feb 21, 2018 09:41 am UTC| Research & Analysis Insights & Views
Crude prices were mixed yesterday, as lower-than-expected inventories buoyed the U.S. crude grade while refinery maintenance in Europe weighed on oil prices in the region but tumbled sharply today, weighed by the U.S....
FxWirePro: Confluence of trios to propel VIX in 2018
Feb 21, 2018 08:30 am UTC| Research & Analysis Insights & Views
It has taken a monumental VIX shock for the realization to dawn that the low volatility patch of 2017 is now history. Front-end FX vols had been climbing for the better part of the New Year on heavy demand for USD puts and...
FxWirePro: GBP/JPY what-if scenario analysis, OTC setup and hedging perspectives
Feb 21, 2018 06:43 am UTC| Research & Analysis Insights & Views
Bearish GBPJPY scenarios: 1) CPI peaks and wage growth fails to accelerate to 3%; 2) The balance of payments pressure (capital repatriation from LT investors; current a/c stuck at 4-5%). 3) PM May faces a...
Feb 20, 2018 12:25 pm UTC| Research & Analysis Insights & Views
As expected, yesterday was a relatively quiet session and we may be set for another. A number of surveys are released today, with the UK CBI industrial trends and German ZEW the most important among them. The market was...