
Mar 15, 2018 10:18 am UTC| Research & Analysis
As for monetary policy, we remain to be convinced that a modest increase in UK rates over and above what is now priced (we expect 50bp this year) will be a game-changer for GBP. Growth may have improved in the UK but the...

FxWirePro: Find best value in Antipodean vols via calendar spreads to deal post-event resilience
Mar 15, 2018 09:25 am UTC| Research & Analysis
After US and Swedish CPI prints this week, we reiterate their market-moving potential. Consumer prices in the United States increased 2.2% YoY in February of 2018, slightly above 2.1% in January and in line with market...

FxWirePro: Trade and hedge AUD/NZD via ‘Options Strips’
Mar 15, 2018 07:46 am UTC| Research & Analysis Insights & Views
AUDNZD in a neutral state near term, a 1.0700-1.0800 range likely to contain. But in medium-term perspective:We could foresee the potential for a further decline towards 1.06 during the next month, given recent interest...

FxWirePro: What drives bearish AUD/NZD in Q2’2018? FX derivatives strategies
Mar 15, 2018 06:50 am UTC| Research & Analysis
In 2018, the main bearish risk to AUD (aside from China-related weakness) comes from a lift in market volatility. We expect both monetary policy divergence and modestly weaker commodity prices to push the currency lower....
FxWirePro: March appears to be murky for Turkish lira – Uphold long hedge
Mar 14, 2018 14:19 pm UTC| Research & Analysis Insights & Views
The Turkish lira has weakened through March and slipped noticeably during trading yesterday, with the TRY basket exchange rate (vs. half EUR, half USD) ending up 2.3% weaker compared with the beginning of March. A number...

FxWirePro: Long EUR/AUD hedge via economical FVA Vega spreads
Mar 14, 2018 12:19 pm UTC| Research & Analysis Insights & Views
In order to take advantage of vol/correlation setup, one could play directionally stronger reserve currency vs. weaker high beta (vs. the USD) via worst-of options. Rich correlations and still generally depressed vols...

Mar 14, 2018 11:59 am UTC| Research & Analysis Insights & Views
Lets glance at GBPUSD sensitivity tool, the positive shift in risks reversals that indicate the bullish risks in underlying spot FX prices in near-term. While positively skewed IVs of 1m tenors are well balanced that...