Nov 10, 2016 07:43 am UTC| Research & Analysis
The narrow-dated forward vols in antipodean currencies are priced highly asymmetrically with respect to a rolling history of 1M ATM vol. For instance, the above chart explains that indicative offers on 1M1M FVAs in...
Nov 10, 2016 07:33 am UTC| Research & Analysis
The excessive yen skew premium Yen calls are in high demand for all crosses as the market is behaving in a risk-off way. As we wrote here and here, the yen probably met an inflexion point after months of strength. A...
Nov 09, 2016 14:36 pm UTC| Research & Analysis
The U.S. dollar tumbled over 1% to a one-month low against the other major currencies on Wednesday, as Donald Trump appeared to be winning the U.S. presidential election. Markets began pricing in owing to a Trumps...
Nov 09, 2016 14:07 pm UTC| Commentary
The right balance between commodity dependence and external imbalances. The evolution of net commodities exports and current account balance (as % of GDP) between 2013 and 2015 (the second leg of the commodity...
Nov 09, 2016 12:54 pm UTC| Research & Analysis
The results of the US elections has caused turbulence in almost all asset avenues including EMFX as the Republican candidate Donald Trumpis crowningas the 45th president of the United States on Wednesday, crushing the...
Nov 09, 2016 10:17 am UTC| Research & Analysis
We forecast a moderately higher gold price during the remainder of the year with a 4Q16 price forecast of $1,350/oz as our economists expect a slow pace of Fed tightening with the next rate hike likely at the December...
Nov 09, 2016 09:42 am UTC| Research & Analysis Insights & Views
The NOK is closely correlated to crude oil prices, and it has strengthened this year following stabilization in oil and the Norwegian economy. Norway is also running the highest inflation readings among G10...