Jan 08, 2018 13:03 pm UTC| Research & Analysis Insights & Views
We expect three years of real GDP growth below 1% in 2018-2020, averaging 0.8% per annum, about a quarter of the worlds average growth rate. On a positive note, that ought to be enough to shrink the current account deficit...
Jan 08, 2018 09:49 am UTC| Research & Analysis Insights & Views Central Banks
As we have done with the Brexit-driven long GBP vol theme the last year, NAFTA or BoC-related CAD-volatility seems to be the best isolated via easy-to-carry relative value structures in 2018. CAD-denominated...
FxWirePro: LATAM FX hedging intricacies with pinch of salt
Jan 08, 2018 08:52 am UTC| Research & Analysis Insights & Views
Fundamentals currently seem uber-supportive for EMFX space. However, as this opinion has become the consensus, it raises red flags. A simple, and perhaps naive, parallel to previous cycles suggests that 2018 may resemble...
FxWirePro: What leads and what lags TRY in Q1’2018? OTC calls to hedge USD/TRY FX risks
Jan 08, 2018 07:32 am UTC| Research & Analysis Insights & Views
In Turkey, the CBRT disappointed consensus and market expectations of 100bp of hikes to the late liquidity window (to 13.25%) by hiking only 50bp to 12.75%. The 50bps rate hike is not sufficed to stabilize the currency, as...
Jan 08, 2018 06:38 am UTC| Research & Analysis Insights & Views
Dollar tantrum is still on despite substantial hurdles cleared in the US tax reform process, and a Fed rate hike. The conviction of broad USD strength through 1Q seems to be shrinking away as the greenback has failed to...
FxWirePro: Place EUR put/SEK call as Riksbank forward guidance ahead of ECB
Jan 05, 2018 12:13 pm UTC| Research & Analysis Central Banks Insights & Views
In Sweden, the prospects of a policy pivot were delayed not derailed this year. At the October meeting, the central bank signaled that it was waiting for further information which could motivate a QE extension, and also...
FxWirePro: Be choosy and stay long on VXY through 2018
Jan 05, 2018 12:11 pm UTC| Research & Analysis Insights & Views Central Banks
The global picture on the volatility front hasnt really changed in recent months. Implied and realized volatility is still hovering in their low or very low percentiles. 2017 the trading year is going out rather quietly...
Why spending time and money creating TikToks probably won’t pay off for Labour and Conservatives