FxWirePro: USD/JPY ‘Diagonal Put Ratio Back Spread’ strategy ahead of BoJ and Fed

Jul 30, 2018 09:11 am UTC| Research & Analysis Insights & Views Central Banks

We reckon that it is premature to crown the dollar king and extrapolate continued broad USD strength into and through the second half of the year due to many time fundamental factors. Yes, the cyclical divergence is still...

Fed Hike aftermath Series: Hike probabilities over coming meetings

Jul 30, 2018 08:37 am UTC| Commentary Central Banks

FOMC increased interest rates in March and June and increased its forecast from three rate hikes in 2018 to four rate hikes. June decision was unanimous. Current Federal funds rate - 175-200 bps (Note, all calculations are...

FxWirePro: USD/JPY bears resume ahead of BoJ after formation of shooting star patterns at 61.8% Fibos – Trade tunnel spread and short hedge

Jul 30, 2018 08:25 am UTC| Technicals Central Banks

USDJPY has formed shooting star patterns at 112.835 (on the daily chart) and 111.422 levels (on weekly plotting) amid todays mild rallies as market nudges trade war tormentor but seems to have considered BoJ and Feds...

FxWirePro: Preview of BoE monetary policy and deploy GBP/USD smart hedges

Jul 27, 2018 15:33 pm UTC| Research & Analysis Central Banks

BoE is scheduled for its monetary policy on 2nd August; the MPC is expected to raise interest rates by 25 bps to 0.75% at its August policy meeting. While the majority of the Committee are expected to support the move,...

FxWirePro: Spotlight on Sterling Ahead of BoE and Soft/No deal/Delayed Brexit Deal - Propulsion of Imminent GBP/CAD RV Trades

Jul 27, 2018 12:46 pm UTC| Research & Analysis Insights & Views Central Banks

The BoC and the BoE appear to be looking to normalize monetary policy but experiencing similar difficulties. Both are involved in uncertain trade discussions that are weighing on investment and both have seen a softer...

FxWirePro: BoJ stresses importance of YCC with special auctions

Jul 27, 2018 12:31 pm UTC| Commentary Central Banks

With its actions this week, the Bank of Japan (BoJ) showed exactly how important the Yield Curve Control (YCC) is for its future monetary policies and exactly how aggressively its going to defend it. The central bank...

FX Hedging Strategy Series

FxWirePro: BoE to stimulate sterling, potential for oil price risks to cushion loonie - Favour GBP/CAD uncertain bearishness via 3-way straddles

Jul 27, 2018 10:29 am UTC| Research & Analysis Central Banks

The pound sterling should not suffer too much. An interest rate hike by the Bank of England (BoE) next week is now the consensus opinion in the market. And so the fundamental difference between BoE interest rate policy and...