Bank of Korea Governor Nominee Warns of Action if Korean Won Weakens Further 
Bank of Korea Nominee Shin Hyun-song Calls for Flexible Monetary Policy Amid Iran War Risks 
Bank of Japan Officials Signal Continued Interest Rate Hikes Amid Inflation Concerns 
Bank of Japan Unveils New Inflation Gauge to Support Case for Future Rate Hikes 
India's Central Bank Holds Rates Amid Iran War Energy Shock 
RBI Clamps Down on Rupee NDF Activity, Banks Face Steeper Losses 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
RBI Holds Interest Rates Steady Amid Middle East Tensions and Global Uncertainty 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
RBA's Hauser Flags Uncertainty on Rate Settings Amid Iran War Economic Risks 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Federal Reserve Probes Big Banks Over Private Credit Exposure Amid Growing Systemic Risk Concerns 
China's Refining Industry Faces Major Shakeup Amid Challenges 
The dollar is a high-carry currency... Among the currencies of the industrialized countries (G10 FX), the US dollar is the one with the highest interest rate. And it's going to stay that way for now. Isn't that in itself a strong argument for a strong dollar?
As a matter of fact, it is. However, this fundamental advantage of the dollar has long been priced into its exchange rates. In the course of 2014, it became foreseeable that the Fed would raise US interest rates in the not too distant future, while other central banks (e.g. the ECB and the Bank of Japan) would continue to remain ultra- expansionary for a long time – in some cases more and more. This is why the US currency appreciated at that time. Previously (2009 to mid-2014), the dollar index traded around 80, since the beginning of 2015 it is moving in the area near 95 (refer above chart).
Buy 2m 1.1320 EURUSD put; sell 1.16 EURUSD call for net cost of 11bp. Spot ref: 1.14 levels, while simultaneously maintain shorts in EURCHF at 1.1244 with a stop at 1.1469.
Alternatively, we advocate initiating longs in EURUSD futures contracts of Feb’19 delivery as further upside risks are foreseen in near terms. Simultaneously, shorts in futures of April’19 delivery. Thereby, one can directionally position their FX exposures. The directional implementation of the same trading theme by further allow for a correlation-induced discount in the options trading also if you choose strikes appropriately. Courtesy: Commerzbank
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 70 levels (which is bullish), while hourly USD spot index was at -90 (bearish) while articulating (at 08:34 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
