FX Hedging Strategy Series

FX Hedging Strategy Series

FxWirePro: NZD/USD consolidation pattern doesn't seem mightier after dropping from resistance at 0.6896 - trade tunnel spreads

Apr 05, 2016 10:38 am UTC| Technicals

Ever since the pair has bounced back from the lows of 0.6347 levels, Kiwi dollar has been consolidating stronger from last couple of months. But, after dropping from major resistance at 0.6840 levels (7DMA, 29th March...

FX Hedging Strategy Series

FxWirePro: EUR/JPY IVs grow in steady pace, is it suffice to favor overpriced puts?

Apr 05, 2016 07:52 am UTC| Technicals

EURJPY began this week at 127.231, now drifting below 125.300 levels (i.e. almost 1.29% in spot FX terms). The euro-yen pair prolonged to the southwards and dropped to the lowest levels since 25th March as markets...

FX Hedging Strategy Series

FxWirePro: Bid USD/JPY risk reversals for ITM long puts and use lower IVs to build long put ladder spread

Apr 05, 2016 07:02 am UTC| Technicals

Why do we think USDJPY sensing pressures for downside risks but hedging costs seem expensive: As we could see little change in delta risk reversal numbers, that signals underlying pair may show slight strength in next 1...

FX Hedging Strategy Series

What drives AUD/USD's prospects in long term (in H2'2016) and OTC positions?

Apr 04, 2016 13:04 pm UTC| Commentary

The rally extended last week as the AUD continued to push to fresh 2016 highs. Majority of the rally could be attributed to moves in the USD more broadly as commodity prices, and iron ore in particular, ended the week...

FX Hedging Strategy Series

FxWirePro: Hedge AUD/USD's exporter FX risks on long term forecasts and events via 2:1 backspreads

Apr 04, 2016 13:01 pm UTC| Commentary

Over the longer-term, we expect AU growth to remain subpar and AUD to drift lower. But, there have been a few key things to watch out in H2 of 2016. The governor Stevens retires in Sept 2016 Federal election...

FX Hedging Strategy Series

FxWirePro: Optimize AUD/CHF vols with Vega instrument to hedge downside risks

Apr 04, 2016 11:39 am UTC| Commentary

The current implied volatilities of ATM puts of AUDCHF are spiking at 18.42% and at 12.85% for 1 week tenors. You will understand the option price sensitivity if you have to evaluate these vols and option greeks with...

FX Hedging Strategy Series

FxWirePro: A glimpse on relation between AUD/USD Option Greeks and implied volatilities

Apr 04, 2016 10:48 am UTC| Commentary

Over the longer-term, we expect AU growth to remain subpar and AUD to drift lower. There are a few key things to watch in 2016. Governor Stevens retires in Sept 2016 while a federal election must be held by Jan 2017. AUs...