FX Hedging Strategy Series

FxWirePro: CBRT’s status quo cushions momentary gains in Lira, Rosy times to deploy “USD/TRY Credit Call Spreads”

Oct 21, 2016 13:12 pm UTC| Central Banks Research & Analysis

The Turkish lira rallied yesterday after CBT surprised markets by keeping rates on hold at its MPC meeting. But as the pair rallied today, the last weeks gains are almost wiped off when the dollar looked good today...

ECB stays pat, allays fears of abrupt tapering of asset purchases

Oct 21, 2016 12:43 pm UTC| Insights & Views Central Banks

The European Central Bank left ultra-loose monetary policy unchanged on Thursday and maintained its monthly QE purchases of EUR80bn. The central bank kept the door open to more stimulus in December, firmly shooting down...

FX Hedging Strategy Series

FxWirePro: Is Swiss franc edgy on SNB? 1M lackluster IVs uphold the significance of USD/CHF long put ladders

Oct 21, 2016 12:23 pm UTC| Central Banks Research & Analysis

It is not too hard to draw parallels between the size of the BoJ and the SNBs balance sheets, and hence the potential constraints on the SNBs FX policy which amounts to a soft floor in EURCHF. Its noteworthy that this...

National Bank of Poland’s MPC sees stable policy rates despite concerns over economic growth

Oct 21, 2016 10:25 am UTC| Central Banks Commentary Economy

The National Bank of Polands (NBP) monetary policy committee (MPC) still sees stable rates as the most likely scenario in the recently released minutes of the latest monetary policy meeting. This is despite the fact that...

Bank Negara likely to ease in November, inflation likely to soften in coming months

Oct 21, 2016 09:50 am UTC| Central Banks Commentary Economy

Bank Negara Malaysia (BNM) is expected to ease its key interest rate at the monetary policy meeting in November with inflation likely to soften in the next 2-3 months and as growth concern intensifies. Rising inflation...

CBT unexpectedly holds interest rate, hints at credible approach

Oct 21, 2016 06:52 am UTC| Commentary Central Banks

Yesterday, the Turkish lira rallied after the Central Bank of Turkey unexpectedly kept the interest rates unchanged during its MPC meeting. The CBT kept the key interest rate on hold at 7.5 percent. During all of its six...

FX Hedging Strategy Series

FxWirePro: S.Africa's political distress, inflation beyond SARB’s projection pump up ZAR OTC FX turbulence – Yields on USD/ZAR spread appears to be imminent

Oct 20, 2016 12:02 pm UTC| Central Banks Commentary

A glance at the implied 3-month volatilities illustrates the whole crux of the matter: at 19.9% ZAR is the currency with the highest volatility at present among G20 FX space. The volatility of the rand is the expression...