Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Want to cut your energy bills? Here’s how five experts are doing it 
Stock Futures Dip as Investors Await Key Payrolls Data 
Wall Street Analysts Weigh in on Latest NFP Data 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Morgan Stanley Warns Against Overestimating EV Demand Boost from Rising Oil Prices 
This fuel crisis could last for a while. It’s time for a new approach to fuel use - end it 
J.P. Morgan Downgrades Essity AB on Rising Costs and Weak Earnings Outlook 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Why the future of marijuana legalization remains hazy despite high public support 
Energy Price Spike Won't Trigger Lasting Inflation, Analysts Say 
Cable outlook: Medium-term FX/rates correlation holds again; Fed will hike and MPC won’t.
Uncertainty is now about the impact of triggering Article 50, not whether or not it happens.
2m vol is undervalued by 2 vols and will pick up further if spot accelerates below 1.20.
Fast downside, cheap vol and skew suggest buying an OTM put.
The optimal strike of a 2m put is 1.16, costing 45 pips in current market conditions.
Cable approaching lows within a bearish phase Cable has been evolving within a 1.20-1.27 range since last October.
However, stepping back and considering the weekly price action instead suggests that the GBPUSD had been trapped in a wide bearish channel (refer above graph) for about one year, just when Brexit talks started to heat up in February 2016.
Cable is approaching recent lows, and our technical analysts project a possible fast fall to 1.13.
Hedging Framework:
Buy GBPUSD 2m put strike 1.16, indicative offer: 45 pips (spot ref: 1.2150)
Risk profiling: Limited to premium. Investors buying a vanilla option cannot lose more than the premium initially invested. In current market conditions, the put will likely expire in the money if the spot falls by at least 45 pips below the traded level.
