FxWirePro: Polish attempt to resurge on NBP – Chip in EUR/PLN slumps and hedge upside risks via “Diagonal Credit Call Spreads”

Oct 04, 2017 12:40 pm UTC| Central Banks Research & Analysis Insights & Views

The Polish central bank held its rate decision today: no change in monetary policy was the consensus. The National Bank of Poland announced its reference rate at a record low of 1.5 pct on October 4th, 2017, as widely...

FxWirePro: GBP/EUR/CHF vols spreads seem to be lucrative carry trades

Oct 04, 2017 12:08 pm UTC| Research & Analysis Insights & Views

The somewhat panicky unwinding of Euro (and other European FX) longs might leave macro investors less willing to spend option premium to play for EUR resurgence. In this situation, if one had to pick one Eurobloc currency...

FxWirePro: Euro to prolong bullish rout despite lingering European politics to engulf, IVs tepid but skews to substantiate – EUR/AUD call ladders to optimize hedging

Oct 04, 2017 10:53 am UTC| Research & Analysis

In Europe, the focus will continue to be on political developments in Spain, as the Catalonian parliament is increasingly likely to declare independence in the coming days. Hence, tensions are likely to rise further before...

FxWirePro: Driving forces to establish ‘triangular conflations’ in Yen shorts

Oct 04, 2017 09:01 am UTC| Central Banks Research & Analysis Insights & Views

The fate of the greenback depends on much more on a far more important issue at present: Janet Yellens successor as Fed Chair. The FOMCs monetary policy decisions are not taken at the Chairs discretion. But lets not fool...

FxWirePro: EUR/JPY call RKOs on its efficient recital, Uphold gutsy strategy to arrest further dubious upside risks

Oct 04, 2017 07:11 am UTC| Research & Analysis Insights & Views

Weve already advocated call reverse knock out spreads for EURJPY as the underlying spot FX seemed to have been exhausted. Consequently, weve seen bearish effects in the recent past. Please be noted that the implied vols...

FxWirePro: Dual EMFX RVs to capitalize on petro sensitivity

Oct 03, 2017 13:28 pm UTC| Research & Analysis Insights & Views

The speed of the correction in EM FX has surprised us, but we remain cautiously pro-carry in our region, given supportive valuations. Among EM currencies, MXN vs. RUB is an interesting skew pair trade to...

FxWirePro: RBA maintains status quo not only in cash rates but forecasts, AUD IVs shrinks but bearish hedging sentiments mounting after Aussie central bank

Oct 03, 2017 12:52 pm UTC| Research & Analysis Central Banks Insights & Views

Sometimes you have to repeat something again and again for it to be understood. This is what the Reserve Bank of Australia (RBA) is experiencing at the moment. Since August, the RBA has taken an aggressive verbal stance...