FxWirePro: Unwind and stay long in Scandis on central bank policies
Jan 09, 2018 10:41 am UTC| Research & Analysis Insights & Views Central Banks
Long BRLNOK trades have to be unwound, this LatAm/Scandi trade was opened to fetch carry in a lower beta approach. This theme still looks to be attractive, trade particularly now seems vulnerable to rising oil prices as...

Jan 09, 2018 08:59 am UTC| Research & Analysis Insights & Views
The global picture on the volatility front hasnt really changed in recent months. Implied and realized volatility is still hovering in their low or very low percentiles. Long carry through the 2018 year ahead outlook...

Jan 09, 2018 07:06 am UTC| Research & Analysis Insights & Views
Even with sterling making new lows in trade-weighted terms (nominal and real), GBPUSD meandering in a 1.30-1.35 range is foreseen for most H1 of 2018. However, a slump to GBPUSD 1.25 would require, above all else, a...

Jan 08, 2018 13:03 pm UTC| Research & Analysis Insights & Views
We expect three years of real GDP growth below 1% in 2018-2020, averaging 0.8% per annum, about a quarter of the worlds average growth rate. On a positive note, that ought to be enough to shrink the current account deficit...

Jan 08, 2018 09:49 am UTC| Research & Analysis Insights & Views Central Banks
As we have done with the Brexit-driven long GBP vol theme the last year, NAFTA or BoC-related CAD-volatility seems to be the best isolated via easy-to-carry relative value structures in 2018. CAD-denominated...

FxWirePro: LATAM FX hedging intricacies with pinch of salt
Jan 08, 2018 08:52 am UTC| Research & Analysis Insights & Views
Fundamentals currently seem uber-supportive for EMFX space. However, as this opinion has become the consensus, it raises red flags. A simple, and perhaps naive, parallel to previous cycles suggests that 2018 may resemble...

FxWirePro: What leads and what lags TRY in Q1’2018? OTC calls to hedge USD/TRY FX risks
Jan 08, 2018 07:32 am UTC| Research & Analysis Insights & Views
In Turkey, the CBRT disappointed consensus and market expectations of 100bp of hikes to the late liquidity window (to 13.25%) by hiking only 50bp to 12.75%. The 50bps rate hike is not sufficed to stabilize the currency, as...