FxWirePro: Spike in Turkish tourism seems trivial against widening current account deficit, lira still fragile – Uphold bullish hedging

Nov 30, 2017 12:45 pm UTC| Research & Analysis

The lira continues to be on tenterhooks as Iran sanctions hearings in the US proceed. Yesterday did not bring fresh adverse news on this front, however. Meanwhile, the Tourism Ministry published tourist arrival figures for...

FxWirePro: Why long EUR vega strategy with constructive vols rolldown?

Nov 30, 2017 12:13 pm UTC| Research & Analysis Insights & Views

As per last weekly reporting, European high yield funds registered an outflow of 771mm (1.3% of AUM) for the week ending 22 November. There was a 143mm (2.1% of AUM) net outflow for ETFs and a 53mm (0.6% of AUM) net...

FxWirePro: Hedge dual-risk in EUR rates after recent developments via Vega strategy

Nov 30, 2017 10:44 am UTC| Research & Analysis Insights & Views

The medium-term view on the euro remains bullish in anticipation of a pivot in ECB policy. The recent political developments in the Euro area have also garnered the attention. Buy EUR bottom-right vega EUR vega is...

FxWirePro: USD/KRW forms gap-up, long buzzing rumor and short the fact via 1:2 call ratio spreads on BoK event

Nov 30, 2017 08:53 am UTC| Central Banks Research & Analysis Insights & Views

Finally, USDKRW took a break from the streaks of bearish swings today. Entering the new week, USDKRW stabilized at 1087 level with a gap up opening today. The Bank of Korea raised its base rate by 25 basis points this...

FxWirePro: What does mounting buying sentiments by FX reserves managers in bond markets imply?

Nov 30, 2017 07:42 am UTC| Research & Analysis Insights & Views

FX reserve managers, which have started accumulating reserves again since the second half of 2016, are on track to be purchasing $140bn of bonds this year with a further rise likely for 2018. Assuming continued capital...

FxWirePro: Fair interpretation of EUR/USD vol curve and precise evaluation of risk reversals and wise hedging strategies to mitigate FX risks

Nov 30, 2017 06:45 am UTC| Research & Analysis Insights & Views

The recent increase in steepness of EURUSD vol curves is not quite a sub-1Y phenomenon. The unique liquid long-tenured G7 surface that we are meticulously monitoring for ciphers of extreme curve shape is EURUSD, where the...

Announcement: Moody's: Mongolia's credit profile incorporates its strong growth potential, high debt burden and fragile external position

Nov 30, 2017 01:19 am UTC| Research & Analysis

Moodys Investors Service says that Mongolias (Caa1 stable) credit profile reflects the countrys strong growth potential, given its abundant mineral resources, but, also that, as a narrowly diversified economy, it is...