FxWirePro: Dual EMFX RVs to capitalize on petro sensitivity

Oct 03, 2017 13:28 pm UTC| Research & Analysis Insights & Views

The speed of the correction in EM FX has surprised us, but we remain cautiously pro-carry in our region, given supportive valuations. Among EM currencies, MXN vs. RUB is an interesting skew pair trade to...

FxWirePro: RBA maintains status quo not only in cash rates but forecasts, AUD IVs shrinks but bearish hedging sentiments mounting after Aussie central bank

Oct 03, 2017 12:52 pm UTC| Research & Analysis Central Banks Insights & Views

Sometimes you have to repeat something again and again for it to be understood. This is what the Reserve Bank of Australia (RBA) is experiencing at the moment. Since August, the RBA has taken an aggressive verbal stance...

FxWirePro: Chinese demand for industrial metals to sense lot more flux in Q4’2017

Oct 03, 2017 10:44 am UTC| Research & Analysis Insights & Views

Nearly two weeks ago, our Chinese economists revised their growth forecast for 3Q17 40bps lower to 6.2% QoQ after July activity data surprised significantly to the downside and August only improved modestly. While...

FxWirePro’s options strategy for Gold fetches desire yields, US inflation and repricing of Fed hikes guide bullion bears – Uphold short hedges via far-month tenors

Oct 03, 2017 09:15 am UTC| Research & Analysis Insights & Views

A possible bottoming out in inflation and the Fed repricing of a December hike are outright bearish and gold should rebase lower. To this end, the median Fed participant continues to look for one more hike this year (in...

FxWirePro: Glimpse through G10 and EMFX implied scenarios

Oct 03, 2017 08:38 am UTC| Research & Analysis Insights & Views

The dollar is seeing its fourth successive week of trade-weighted gains, mirroring a four-week gain in Treasury yields amid hopes of a tax-cutting fiscal package and expectations of a December Fed rate hike. We combine our...

FxWirePro: GBP/JPY 2w/2m IV slopes to lure Theta shorts and Vega longs in optionality structures as Sterling bulls gain traction momentarily on hawkish BoE

Oct 03, 2017 05:56 am UTC| Research & Analysis Central Banks Insights & Views

Following on from last weeks hawkish comments from Bank of England policymakers in the recent past, we now expect a UK rate hike of 0.25% to be announced after the next Monetary Policy Committee meeting on November 2nd....

FxWirePro: Hedge USD/TRY risks via debit put spreads as Turkey posts mixed bag of fundamentals

Oct 02, 2017 18:20 pm UTC| Research & Analysis Insights & Views

Weve seen the trade and tourism data for August on Friday: the trade data highlight continuing widening of the trade deficit despite healthy export growth -- both exports and imports have accelerated visibly during the...