FxWirePro: Why and what's so hawkish in BOC’s next MPS?

Jun 30, 2017 10:17 am UTC| Central Banks Research & Analysis Insights & Views

Hawkish commentary from Bank of Canada officials this month has taken the FX market by storm. The implied probability of a 25bp BoC rate hike in its 12 July meeting has exploded from under 5% just three weeks ago to over...

FxWirePro: Deploy USD/CAD knock out options as loonie likely to take flight

Jun 30, 2017 10:05 am UTC| Research & Analysis Insights & Views Technicals

USDCAD is attempting to test key support at 1.30/1.2970, and a break will open the way to the May 2016 lows of 1.25. Recent highs of 1.3350 will cap short-term upside. The loonie takes flight - These recent...

FxWirePro: AUD/USD hedging bids for short-term upside risks to boost up functionality of short leg in “Put Ratio Back Spread”

Jun 30, 2017 09:17 am UTC| Research & Analysis Insights & Views

OTC indications and options strategy: Please be noted that the positively skewed IVs of 3m tenors signify the hedgers interests to bid OTM put strikes upto 0.7450 (refer above diagram). While delta risk reversal...

FxWirePro: Where would Aussie dollar likely to head towards in H2’2017 ahead of RBA statements?

Jun 30, 2017 08:57 am UTC| Central Banks Insights & Views

For AUDUSD, the impressive rise since May persists, and has a decent chance of pushing above 0.7700 during the next day or two. From a central bank perspective, the RBA is scheduled to deliver its monetary policy...

FxWirePro: Low vol environment in G10 seems good but beware of indigestion

Jun 30, 2017 05:52 am UTC| Research & Analysis Insights & Views

Please be noted that the above nutshell showing ATM IVs of G10 FX space is sensing the lower volatile environment. The first half of 2017 turned out to be one dominated by USD weakness, and the outperformance of EM...

FX Hedging Strategy Series

FxWirePro: Cost-effective optionality structure to arrest a RUB correction

Jun 29, 2017 12:43 pm UTC| Research & Analysis Central Banks Insights & Views

The CBR remains s dovish. We expect the measured pace of rate cuts beginning in June. May CPI at 4.1% oya surprised on the upside and is marginally above the inflation target of 4.0%. As our base case, JPM forecasts the...

Central Banking Series

FxWirePro: CNB maintains status quo as uncertainty lingering from ECB – Use Forwards derivatives for hedging

Jun 29, 2017 12:23 pm UTC| Central Banks Insights & Views

The Czech National Bank held its two-week repo rate at a record low of 0.05 pct, to keep its benchmark rate on hold today but the CB sends out a more dovish signal as widely expected. The discount rate and the Lombard...