China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
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BOJ Expected to Hold Rates Steady While Signaling More Hikes Ahead 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Stock Futures Dip as Investors Await Key Payrolls Data 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
RBNZ is all set for its monetary policy this week for OCR review that may disappoint NZD-bears. On a broader perspective, OCR reviews that are scheduled on this Wednesday, which may disappoint NZD bears with unchanged guidance (developments since the Feb MPS have been roughly neutral). On Thursday, we get to hear from RBNZ Gov. Orr about the new monetary policy regime.
NZDJPY has halted around 76.553 several times amid stalled global equity markets.
The medium-term perspective: We have watered down our bearish outlook, now only targeting 73 by the year-end. A significant risk to Japan’s economic outlook is that China stimulus is insufficient.
OTC Updates and Options Strategy: To substantiate above bearish stance, the 3m positively skewed implied volatility indicates the hedging sentiments for the lingering bearish risks. Bids are for OTM puts up to 74.000 levels.
As a result, we construct suitable options strategy favoring slightly on the bearish side. Initiate longs in -0.49 delta put options of 3m tenors, simultaneously, short (1%) out of the money put options of the narrowed expiry (preferably 2w tenors), the strategy is executed at net debit.
Well, a higher (absolute) Delta value is desirable on the long leg in the above-stated strategy. Whereas, the Theta is positive on the short leg; as the time decay is good for an option writer (that’s why we’ve chosen narrowed expiry). The short side likely to reduce the cost of hedging with time decay advantage on the short leg, while delta longs likely to arrest potential bearish risks. Courtesy: Westpac & Sentrix
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 54 levels (which is bullish), JPY is at 98 (bullish) while articulating (at 07:24 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
