FxWirePro: Buy risk reversals and hedge with back spreads as Gold shining to upside risks
Feb 11, 2016 08:22 am UTC| Technicals
With gold CFDs flashing at 1207.00 we see delta risk reversal for 1W-1M contracts have shown higher positive numbers that signal upside risks in this commodity next 1W-1M call options are on higher demand. As you can make...
FxWirePro: Use ATM and OTM puts in GBP/JPY 2:1 PRBS - ATM delta put ensures underlying outrights
Feb 11, 2016 07:06 am UTC| Technicals
Overall trend of this pair fixes it bearish view for a target of 160.207 and may even tumble up to 156.480 in near terms. We can ponder arresting this potential downside risks through Put Ratio back Spread in 2:1...
FxWirePro: What is cable vols – Risk reversals favor GBP/USD’s slumps than EUR/GBP gains
Feb 10, 2016 13:12 pm UTC| Technicals
While, conducting risk reversal analysis coupled with 6M IVs, cable vols are trading much cheaper than EURGBP even though more downside potential seen in GBPUSD than EURGBPs upside risks. Although GBP volatilities are not...
FxWirePro: EUR/GBP and GBP/USD vols look cheaper than EUR/USD in Brexit scenario
Feb 10, 2016 12:17 pm UTC| Technicals
EUR/GBP forward volatility is cheaper (for next 3 months expiries) because EUR risk (shifting the entire curve higher) somewhat offsets future GBP risk (causing the steepness of both GBP curves). However, EUR risk is...
Feb 10, 2016 08:36 am UTC| Technicals
Daily and Weekly charts are still popping up selling signals in this pair that may slide down again after testing channel supports at 0.9711 levels. As shown on the daily charts, as the pair seems unlikely to break and...
FxWirePro: NZD seems vulnerable on trade terms – hedge with delta option combinations
Feb 10, 2016 06:37 am UTC| Technicals
Of the non-oil commodity exporters, NZD and ZAR should be the weakest. New Zealands current account deficit will probably balloon from -4% to at least -6% in the months to come on lower dairy prices and still-strong import...
Feb 09, 2016 10:28 am UTC| Technicals
As we saw in our recent risk reversal computation of EURUSD, we may see little upside movements but those rallies may lose momentum and holds stronger for next 1 month or so, certainly not in a long run. Please be noted...
Canadians are feeling increasingly powerless amid economic struggles and rising inequality
Another election, another round of Nigel Farage hype, with no lessons learned