FxWirePro: What Is Spotted-Out In August Seasonality of FX Vol?
Aug 12, 2020 13:14 pm UTC| Research & Analysis Insights & Views
August FX vol bounce is real, particularly in yen crosses but monthly vol rallies tend to be only of the order of 1vol. This relatively benign outcome leaves us comfortable with carrying short skews as a core theta-earning...
FxWirePro: Demand/Supply Equation & Hedging Strategy of Brent Crude
Aug 12, 2020 11:02 am UTC| Research & Analysis Insights & Views
After six consecutive weeks of stalling global mobility, we trim our 2H20 demand assumptions by 1.5 mbd. The core demand scenario calls for a shallower recovery, rather than a renewed sharp downturn as governments,...
FxWirePro: Dollar Seems Apprehensive On Fed’s Concerns, Short USD/CHF
Aug 12, 2020 10:17 am UTC| Research & Analysis Central Banks Insights & Views
Negotiations on a new economic stimulus package in the USA are still at an impasse. Since Friday there are said to have been no more direct talks between Democrats and Republicans. The markets and the Dollar are still...
Aug 12, 2020 07:11 am UTC| Research & Analysis Central Banks Insights & Views
The Kiwis central bank (RBNZ) left the stance of monetary policy broadly unchanged today, as widely anticipated. The RBNZs headline was that a further easing in monetary policy has been delivered. But it is further only in...
FxWirePro: EUR/USD/JPY FVA Spread
Aug 11, 2020 15:13 pm UTC| Research & Analysis Insights & Views
We have further raised our EUR-USD forecast, as we believe that the depreciation trend of the US dollar is not yet over. It is becoming increasingly apparent that the Fed will stick to an ultra-expansionary monetary policy...
FxWirePro: Quick Glance At AUD/JPY One-Touch Put Calendar Spread
Aug 11, 2020 14:47 pm UTC| Research & Analysis Insights & Views
Amid the marginally more cautious backdrop below we review some limited downside and RV opportunities. We advocate monetizing the current AUDJPY curve set-up via short 1M vs long 2M one-touch calendar spreads, capped loss...
FxWirePro: A Glimpse At Spot Gyration And FX Vol Backdrop
Aug 11, 2020 12:52 pm UTC| Research & Analysis Insights & Views
The recent past has seen some notable spot gyrations our view is that FX vols are priced fairly for such backdrop and absent a major adverse development suggest keeping a status quo as our tactical gamma trading models...