Portfolio analysis on Iron butterfly USD/JPY
May 27, 2015 08:05 am UTC| Insights & Views
The rate of change option portfolio to a relative change in the spot market price of the underlying currency is shown as below:For instance in our earlier post we had advocated iron butterfly, where ATM Call Put were sold...
US economic surprise index surprises to upside
May 27, 2015 07:53 am UTC| Insights & Views
After falling from latter half of 2014 and terrible performance in first quarter US economic surprise index might be changing the direction, indicating US economy in better shape than expected. Chart courtesy...
Guide to today’s important data and events
May 27, 2015 07:18 am UTC| Insights & Views
Not many economic dockets scheduled for today. Focus is on BOC rate decision. Data released so far - Australia - Westpac leading index rose 0.1% m/m in April. Construction work done for the first quarter dropped by...
Streets tend to disregard policy change by BoC
May 27, 2015 07:15 am UTC| Insights & Views
BoC Interest Rate Decision: Todays Bank of Canada policy meeting is unlikely to lead to any policy change. The benchmark interest rate in Canada was last recorded at 0.75%.Whats hindering policy change: The recent rebound...
Put call parity of GBP/USD straddle
May 27, 2015 06:49 am UTC| Insights & Views
Here the portfolio contains the same expiration value with two different currency derivatives instruments of same underlying currency then they must have the same present value.Else, arbitrager can go long on the...
Greece crisis – highlights of G7 summit; US likely to insist EU to address issues meticulously
May 27, 2015 05:47 am UTC| Insights & Views
It is going to be a quite day for new economic data with no releases of note. The G7 finance ministers and governors of central banks begin a three day summit today in Germany but little concrete is expected.The Vital...
Currency snapshot (commodity pairs)
May 26, 2015 15:03 pm UTC| Insights & Views
Dollar index trading at 97.2 (+0.85%). Strength meter (today so far) - Aussie -1.02%, Kiwi -0.88%, Loonie -0.93%. Strength meter (since last week) - Aussie -1.05%, Kiwi -0.77%, Loonie -1.24%. AUD/USD - Trading at...