FxWirePro: USD/TRY FVAs hedge seems more appealing

Jan 31, 2017 09:25 am UTC| Central Banks Research & Analysis Insights & Views

There is merit in earning carry in risk efficient form, and we sell USDTRY 1Yx1Y FVAs hedged with a static vanilla ATM call. USDTRY 1Yx1Y FVAs an appealing shorts, we are not chasing the drop in USD gamma lower;...

FxWirePro: Two FX derivatives trades for USD/RUB on threats of potential CBR FX interventions

Jan 31, 2017 07:41 am UTC| Research & Analysis Insights & Views Central Banks

In upcoming Russian monetary policy meeting, the CBR to remain on hold at 10%. Recent CBR rhetoric has been fairly cautious and we dont think the CBR would act at a non-core meeting (the next core meeting is in March)....

FxWirePro: Macros to drive CBR’s FX interventions – Short term bullish prospects of USD/RUB in Q1’2017

Jan 31, 2017 07:30 am UTC| Economy Central Banks

Every good structural story needs a repricing and a clear-out of extended positioning. The medium-term case for Russian local markets is underpinned by high nominal and real interest rates, falling inflation, and a trend...

Eurozone economic growth likely to stabilise in 4Q16, January inflation to climb higher

Jan 31, 2017 06:39 am UTC| Economy Central Banks

The Eurostat is expected to release its advance estimates of gross domestic product (GDP) for the last quarter of 2016 and January consumer inflation numbers on January 31. Growth is likely to have stabilised into 4Q16...

FX Hedging Strategy Series

FxWirePro: Deploy AUD/USD option combinations - ITM put versus OTM call to match IV skews and delta risk reversals on tight range

Jan 31, 2017 06:18 am UTC| Central Banks Research & Analysis Insights & Views

AUD remained in ranging mode, mostly between 0.7747 and 0.7162: Remains contained in a consolidative range of 0.7500-0.7600. AUDUSD in medium term perspective: Lower to 0.7400. The US dollars impressive post-election...

Bank Indonesia likely to maintain prudent policy stance on economic recovery

Jan 31, 2017 05:35 am UTC| Economy Central Banks

The Bank Indonesia (BI) maintains a prudent policy stance in the wake of rising expectations of economic recovery. The gross domestic product (GDP) growth momentum is expected to pick up at a gradual pace in the coming...

Central Banking Series

Bank of Japan keeps monetary policy unchanged, raises economic growth forecast

Jan 31, 2017 05:21 am UTC| Economy Commentary Central Banks

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan (BoJ) decided to keep its short-term policy interest rate at minus 0.10 percent, while purchasing Japanese government bonds (JGBs) so that...