FxWirePro: What Drives Euro? EURJPY OTC Outlook and Options Trade Recommendation

Jul 22, 2019 05:58 am UTC| Research & Analysis Central Banks

There are three factors we would cite as having helped EUR cope with the regions limp economy thus far: 1) The currency is structurally undervalued, meaning there is already a decent risk premium for the chronic...

Fed Hike aftermath Series: Hike probabilities over coming meetings

Jul 22, 2019 04:36 am UTC| Commentary Central Banks

FOMC followed through its promise and hiked rates four times in 2018 and forecasted two more rate hikes for 2019. Current Federal funds rate - 225-250 bps (Note, all calculations are based on data as of 22nd...

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...