FxWirePro: IVs of Yen crosses shooting up owing to BoJ highest in G10 space – Contemplate leverage profile amid derivatives strategic framework

Jul 28, 2016 12:52 pm UTC| Research & Analysis Insights & Views Central Banks

Please have a glance IVs of Yen crosses (see highlighted portion of yen crosses), 1W ATM tenors have spiked above 22% almost all yen crosses, and this turbulence in OTC market is majorly due to tomorrows monetary policy...

FOMC leaves the door open for a hike this year, incoming data to be crucial

Jul 28, 2016 12:06 pm UTC| Insights & Views

FOMC kept policy on hold, as expected and the Fed policy statement had no major surprises on Wednesday evening. As expected FOMC maintained the federal funds target range unchanged at 0.25%-0.50%. Compared to the last...

FX Hedging Strategy Series

FxWirePro: Disparity between 1w EUR/USD IVs and premiums after Fed’s status quo - Adjusting dilemma between cost and leverage

Jul 28, 2016 11:21 am UTC| Research & Analysis Insights & Views

Please be noted that the ATM IVs of this EURUSD are creeping up at 7.79% and 7.12% for 1w and 1m tenors respectively. Whereas the ATM premiums are trading 24% more than NPV, the disparity between IVs and premiums are...

FX Hedging Strategy Series

FxWirePro: NZD/JPY shorts favored by theta and longs by IVs in “Short Put Ladder” to hedge bearish risks

Jul 28, 2016 08:29 am UTC| Research & Analysis Insights & Views

Technically, the NZD/JPY bears establish robust volume build ups in the major trend, lingering supports 7DMA which seems to be broken to evidence more slumps, we devise a hedging strategy using FX options. The execution...

FX Hedging Strategy Series

FxWirePro: NZD/JPY IVs accelerate in sky rocketed pace as BoJ’s and RBNZ’s monetary policy give impetus – how to use HY vols in FX options

Jul 28, 2016 08:06 am UTC| Research & Analysis Insights & Views Central Banks

The implied volatilities of ATM contracts for near month expiries of this the pair are spiking in sky-rocketed pace. Here are the evidences: ATM IVs of this pair is trending higher at around 53.61%, 17.99% and 24.47%...

FX Hedging Strategy Series

FxWirePro: Spill-over effects of Brexit, who to hedge long and shorts Brexit

Jul 28, 2016 05:56 am UTC| Insights & Views Central Banks

What drive GBP hedging for further downside risks: Despite UK GDP prints managed to post better than forecasted numbers, actual 0.6% versus forecasts at 0.5% and previous 0.4%, the UK growth outlook has been hit by...

How the car fueled global economic and foreign policy

Jul 28, 2016 02:46 am UTC| Insights & Views Economy

Cars are rarely at the centre of either the economic or political debate. In media terms, cars are often in the realm of the likes of Jeremy Clarkson, with some more serious commentators such as the RAC, FIA or SMMT as...