US Gas Market Poised for Supercycle: Bernstein Analysts 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Silver Spikes to $62.89 on Fed Cut – But Weekly Bearish Divergence Flashes Caution: Don’t Chase, Wait for the Dip 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Bitcoin Reserves Hit 5-Year Low as $2.15B Exits Exchanges – Bulls Quietly Loading the Spring Below $100K 
Geopolitical Shocks That Could Reshape Financial Markets in 2025 
Stock Futures Dip as Investors Await Key Payrolls Data 
The neutral-negative risk reversal numbers are still indicating hedging sentiments for the potential bearish risks across all tenors remain intact, while positively skewed IVs of the 3m tenors haven’t changed from the last week, signifies the hedgers’ interests in OTM put strikes.
The skews signal underlying spot FX to drop below 128 levels. While glance through above nutshell evidencing risk reversals, although these numbers have been bearish neutral for longer tenor but bearish risk sentiment remain intact on any negative fundamental driving forces, to substantiate this stance we can observe the 2nd highest hedging sentiments for bearish risks of this pair among G10 FX space after USDJPY.
Hence, keeping the both OTC and technical factors in mind, it is advisable to initiate below relative value trades.
Options strategies for hedging:
At spot reference of EURJPY: 132.919 levels, we advocate following strategies on hedging grounds.
Buy 2M EUR puts/JPY calls vs. sell 2M 28D EUR puts/KRW calls for directional traders.
Buy 2m EURJPY ATM -0.49 delta puts for aggressive bears on hedging grounds.
Sell 4M EURJPY 25D risk-reversal (buy EUR calls - sell EUR puts), delta-hedged for risk-averse traders.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 70 levels (which is bullish), while hourly JPY spot index was at -40 (bearish) while articulating at 11:27 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit:
