FxWirePro: Unwise to blow hawkish BoE out of proportion – Deploy 3-way straddle versus OTM call to hedge GBP/AUD on persisting geo-political stress

Oct 13, 2017 10:58 am UTC| Research & Analysis Central Banks Insights & Views

What a difference a month has made to GBP in terms of immediate central bank prospects, if not the cyclical outlook for the economy or the complex interplay between UK politics and Brexit. The BoE caught the market...

FxWirePro: EIA’s inventories to stimulate shorts leg in WTI diagonal put spreads

Oct 13, 2017 09:22 am UTC| Research & Analysis

This weeks report was bullish for crude and distillate but bearish for gasoline. U.S. EIA (Energy Information Administration) announced in its weekly report yesterday that crude inventories fell by2.75 mbs in the week...

FxWirePro: Capital inflows and geo-political risks to drive Yen’s softness and hedging portfolios

Oct 13, 2017 07:24 am UTC| Research & Analysis Insights & Views

JPY depreciation was notable amid firm global risk sentiments due to receded concerns for North Korea developments and expectations for US tax reforms. For the coming month, the main focus for JPY will be a snap...

FxWirePro: Deploy NZD/JPY via Debit Put Spreads to hedge mounting bearish Kiwi risks over political uncertainty

Oct 13, 2017 07:21 am UTC| Research & Analysis Insights & Views

We continue to look for a lower NZD over the coming year, as tight financial conditions, weaker growth, a housing market that has peaked and a policy rate more likely to go down than up in the next year all weigh on the...

FxWirePro: ZAR carries highest beta ahead of political and fiscal headwinds – Strangle shorting to finance USD/ZAR ATM call

Oct 12, 2017 12:52 pm UTC| Research & Analysis

The major downtrend of USDZAR that took place since January 2016 has now turning out to be in the consolidation phase. We continue to foresee the same range bounded trend but with slight upside biased (refer monthly...

FxWirePro: Encourage euro bullish sentiment with pinch of salt – Call ladders best choice to hedge EUR/AUD ahead of political menaces in euro zone

Oct 12, 2017 12:26 pm UTC| Research & Analysis Insights & Views

In this write-up, we emphasize that the Eurozone political risks hovering in the months to come while formulating hedging framework of EURAUD. Technically, the pair has been in the phase of consolidation mode since...

FxWirePro: Three key driving forces likely to determine resurgence of INR – Activate USD/INR NSE futures of mid-month tenors

Oct 12, 2017 10:34 am UTC| Research & Analysis Insights & Views

The wobble in INR appears to be in the rear-view mirror and modest appreciation should unfold over the coming months. RBI interventions to cap INR strength: USDINR has traded in a range of 63.54-65.93 since March with...