FX Hedging Strategy Series

FxWirePro: 6M EUR/GBP IV skews flow in sync with delta risk reversals - Credit combos for efficient hedging bets

Jul 20, 2016 10:01 am UTC| Research & Analysis Insights & Views

OTC outlook: The 1m implied volatilities are screaming off as the major euro crosses have tumbled considerably ahead of the expectations from tomorrows dovish moves by ECB. The skewness in 1m IVs displays the...

FX Hedging Strategy Series

FxWirePro: NZD/JPY 3:2 Vertical backspreads to reduce hedging cost on HY IVs, Theta on shorts travel faster to make strategy more productive

Jul 20, 2016 07:13 am UTC| Research & Analysis Insights & Views

Kiwi dollar gains after GDT price index that measures the change in the average price of dairy products sold at auction has improved from previous -0.4% to 0.0%. It is the major contributor to the Kiwis trade...

How does Sterling and Euro look after inflation and German Zew sentiments?

Jul 19, 2016 12:25 pm UTC| Insights & Views

Consumer prices in the United Kingdom went up 0.5 pct year-on-year in June of 2016, accelerating from a 0.3 pct increase in the previous two months and higher than market expectations of a 0.4 pct gain. The cost of...

What hinders CAD prospects and what intensifies sterling's depreciation sentiments?

Jul 19, 2016 11:52 am UTC| Central Banks Insights & Views

Just to shed some light on fundamentals as to why CAD losing strength: This months BoC policy statement, monetary policy report and quarterly press conference establish a firm neutral stance that will reinforce the...

FxWirePro: Capitalize on interim rallies of GBP/CAD to construct “Credit Put Spreads” to derive yields regardless of swings

Jul 19, 2016 11:50 am UTC| Central Banks Insights & Views

FX Option Strategy: Here comes the right option strategy to tackle puzzling swings of GBPCAD, put spread constructed at net credits, buy mid-month +1% Out of the money -0.37 delta put option, simultaneously, short 1W...

Minutes of the July meeting reveal RBA unfazed by Brexit, but slightly subdued on domestic outlook

Jul 19, 2016 11:19 am UTC| Insights & Views Economy Central Banks

Reserve Bank of Australia (RBA) earlier today released minutes of the July meeting when interest rates were held unchanged at 1.75%. Minutes highlighted the central bank policy is not on a preset course and reiterated the...

FX Hedging Strategy Series

FxWirePro: Bullion traders rest assured with stiff hedge regardless of swings - Optimal hedging via “Diagonal 3-way straddle versus put”

Jul 19, 2016 10:45 am UTC| Research & Analysis Insights & Views

Market analysts attributed therise in gold prices at futures trade to positive global cues. As we previously explained when we recommended going long Dec16 CME gold, we believe the constructive environment for relative...