FxWirePro: Possibilities of Vol Alpha Theme Ahead of ECB

Jul 19, 2019 14:14 pm UTC| Research & Analysis Central Banks

The European Central Bank (ECB) is scheduled for the monetary policy on July 25th. ECBs readiness to cut its key rate next week. And there is no reason for the euro to appreciate considerably in the short run. The...

FxWirePro: Debit Call Spreads To Hedge USD/KRW as BoK clips in doves camp

Jul 18, 2019 14:52 pm UTC| Research & Analysis Central Banks

The Asian FX view remains biased in favor of weaker North Asian FX, against the dollar as well as on a relative basis versus less trade-challenged currencies of South Asia. KRW is the poster child for the former, as the...

Bank Indonesia cuts key interest rate by 25 bps, likely to cut further

Jul 18, 2019 14:08 pm UTC| Commentary Central Banks

Bank Indonesia lowers its 7-day reverse repo rate by 25 basis points to 5.75 percent today. The decision to cut key rate follows the central banks move to lower its Reserve Requirement Ratio during its meeting last month...

FxWirePro: The Driving Forces of Bearish South African Rand – Bull Put Spread to Hedge USD/ZAR

Jul 18, 2019 13:42 pm UTC| Research & Analysis Central Banks

The developments at the global level, especially the Fed and ECB interest rate cuts that the market is increasingly expecting for as early as July, and stable prospects for domestic inflation data speak in favor of a SARB...

FxWirePro: Hedging Perspectives of EMFX Space on Policy Easing Ground

Jul 17, 2019 14:22 pm UTC| Research & Analysis Central Banks

The FX market is still torn between contradictory forces. Market-implied rate cut expectations (as expressed by the Fed funds futures) have not changed much; but market participants still anticipate roughly two-and-a-half...

FxWirePro: A Run Through on Optionality for Scandinavian FX-Space

Jul 17, 2019 12:57 pm UTC| Research & Analysis Central Banks

The minutes from Riksbankens monetary meeting on 2nd July showed that Riksbankens Executive Board members, who kept the repo rate unchanged at -0.25% at the meeting, emphasized that uncertainties in the international...

FxWirePro: Spotlight on Bearish Antipodeans, Fundamental Driving Forces and Trade Strategies

Jul 17, 2019 09:47 am UTC| Research & Analysis Central Banks

This write-up is to emphasize on bearish antipodeans (AUD and NZD) via shorts in AUDCHF and NZDJPY put spread. NZDUSDs potential for 0.6750 during the next few weeks if the Fed delivers dovish guidance with its 25bp...