FxWirePro: Why is ZAR depreciation is cushioned? hedging FX risks via options
Mar 21, 2016 14:07 pm UTC| Technicals
The ZAR has strengthened against the US dollar (since mid-January, the ZAR has strengthened by 7%) despite domestic uncertainties and weak global risk sentiment. Credibility is running low because South Africa finances...
FxWirePro: TRY hedging drivers and diagonal spread to mitigate long term FX risks
Mar 21, 2016 13:40 pm UTC| Technicals
As the lira is climbing as a result of the dovish Fed, we see the previous risk of an emergency rate hike decreasing significantly. Inflation decelerated to 8.8% y/y in February 2016, down from its 20-month high of...
FxWirePro: EUR/NZD 1M IVs and likelihood to expire ITM and stay hedged via 3-Way straddle vs Call
Mar 21, 2016 11:27 am UTC| Technicals
First and foremost, have a look at the EURNZD ATM IVs of 1 and 3 months tenor (at around 13.5-13.75%) which is why we would advocate the below strategy since more likelihood of underlying spot price swings more...
Mar 21, 2016 08:19 am UTC| Technicals
Please be informed that the implied volatilities of ATM contracts of 1-3 months tenors are bouncing about 13-14% ahead of this weeks data releases of trade balance from NZ side and goods orders, unemployment claims and GDP...
Mar 21, 2016 06:55 am UTC| Technicals
We foresee NZD/USD to drift in range as NZ/US monetary policy diverges. A recovery in export prices but decrease in trade surplus would reduce the central banks sensitivity to the currency, support domestic incomes and...
Mar 21, 2016 06:16 am UTC| Technicals
This APAC pair has tested supports at 0.6750 levels (7DMA is at 0.6732, 7th Mar lows and 4th and 5th of Feb highs), but bearish pressures was also seen at 0.6780 for short term trend as it rejected resistance at this...
Mar 18, 2016 14:18 pm UTC| Technicals
The pair has currently broken supports at 1.0940 levels. Current prices dropped below 7 21DMAs that means weakness to prolong. The southward travel upto next support at 1.0904 is quite possible. In contrast, on...