Digital Currency Revolution

‘Terminator Plan’ Calls into Question Bitcoin Governance

Jul 26, 2016 05:38 am UTC| Insights & Views Digital Currency

Is it time for an alternative governance structure for worlds most valuable cryptocurrency? At the start of July, rumors of a Terminator Plan shook the Bitcoin community to its core, creating talk of mutiny among...

US Election Series

Dreams from their mothers: Hillary and Obama bending history again

Jul 26, 2016 05:30 am UTC| Insights & Views Politics

Hillary Clinton, the first woman presidential nominee of any major party, has a lifetime of experience in fighting for the rights of children and families. She draws on the inspiration from her mothers Dickensian...

FX Hedging Strategy Series

FxWirePro: BoJ manifesto in “catch 22” – Hedge GBP/JPY via HY IVs as easing motive puzzles between inflation targets and FX appreciation check

Jul 25, 2016 13:14 pm UTC| Central Banks Insights & Views

Can BoJ deliver ideal monetary policy decision as easing seems stuck in a catch 22 situation between inflation and yens appreciation? The question has been themajor focus for the week in economic data releases. This...

FxWirePro: IVs and risk reversals of Yen crosses have steepened, reasonable interpretations as BOJ to shower helicopter money

Jul 25, 2016 13:06 pm UTC| Research & Analysis Insights & Views

We hold short JPY skew risk as valuations are stretched. Short-dated tenors are exposed to BoJ under delivering this week, but longer dates offer consistently rich risk premia to fade. JPY vol risk premia are extreme...

FX Hedging Strategy Series

FxWirePro: EM Asian forex basket ahead of monetary policies and economic data season

Jul 25, 2016 11:16 am UTC| Insights & Views

Taiwan Q2 GDP is scheduled to be released on Fridayand is expected to bounce back (consensus 0.7%, previous -0.68%) after three-quarters of contraction. We do not have any trade recommendations in TWD at the moment. The...

FX Hedging Strategy Series

FxWirePro: Bidding USD/JPY 1m RR and IV skew makes PRBS more productive in hedging ahead of central banks’ monetary policy season

Jul 25, 2016 08:01 am UTC| Central Banks Research & Analysis Insights & Views

The FOMC meeting next week is also likely to stay on script. We do not expect the Fed to use the July FOMC statement to push up market expectations for a September hike. While recent data and the easing in financial...

FX Hedging Strategy Series

FxWirePro: JPY IVs blow out of proportion, disparity between ATM premiums and 1w IVs – Calls seem under-priced ahead of Fed and BoJ

Jul 25, 2016 07:11 am UTC| Central Banks Research & Analysis Insights & Views

Please be noted that the yen currency crosses flash the highest IVs among G20 space (seems quite exaggerated OTC moves), while USDJPY sizeable market pin risks at 105.50 for tomorrows expiries and higher skews for OTM put...