FxWirePro: Equity markets and geopolitical factors pose risks to KRW – Synthetic positions to hedge
Sep 07, 2017 11:20 am UTC| Research & Analysis Insights & Views
Shorter term USDKRW sentiment remains driven by geopolitical gyrations. The past month has seen in excess of USD3bn in net equity outflows. Still, the stock of foreign ownership in the Kospi is still around USD100bn higher...

FxWirePro: Hype or fact? Euro gains upside traction in spot and OTC markets ahead of ECB
Sep 07, 2017 10:34 am UTC| Central Banks Research & Analysis Insights & Views
We head into the ECB with prices still within 1.1820 support and the 1.1980 reactions high from last week, currently, gaining upside traction with prevailing spot price at 1.1976 levels. We consider that the 1.20-1.23 area...
FxWirePro: A bird's-eye view on Asian FX and rates derivatives
Sep 07, 2017 09:57 am UTC| Research & Analysis Insights & Views
In Asia, our top pick on a total return basis remains the INR and our preferred way to express the trade is using SGD as a funding currency. We have held short SGD-INR since April 2016 (13% gain) and we would add exposure...

Sep 07, 2017 07:45 am UTC| Central Banks Research & Analysis Insights & Views
The Bank of Canada today hiked its interest rate by 25 bp to 1.00%. This took the market by surprise CAD rallied sharply with USDCAD falling below 1.22. Since May, CAD has appreciated by more than 12% against USD. We fear...

Sep 07, 2017 07:30 am UTC| Research & Analysis Insights & Views
We came across the implied volatility of ATM contracts of USDJPY across all tenors are shrinking lower, just shy above 9.5%, while risk reversals have been bearish neutral. The rationale is that any abrupt upswings...
Moody's: Damage to Korea's credit profile from any conflict would depend on length and intensity
Sep 07, 2017 00:38 am UTC| Research & Analysis
Moodys Investors Service says that any military conflict on the Korean peninsula would damage the South Korean economy, the functioning of its government and its finances, and its payments system, while the severity of the...
Sep 06, 2017 14:47 pm UTC| Central Banks Research & Analysis Insights & Views
We maintain our bullish position in TRY but vols have been jerky, now partially diversified with OW RUB. CBRT monetary policy will likely remain cautious as central bank concerns over sticky inflation expectations grow,...