FX Hedging Strategy Series

FxWirePro: What drives laggards of EMFX carry trades?

Aug 02, 2017 11:32 am UTC| Research & Analysis Insights & Views

We reiterate our bullish view on EMFX, and mark-to-market our forecasts to preserve outperformance relative to the forwards and consensus. In our Year Ahead Outlook, we projected that the bottom in EM FX would be in Q1. We...

FX Hedging Strategy Series

FxWirePro: Chinese currency forwards to get booster from various avenues – Uphold Calendar straddles for hedging

Aug 02, 2017 11:13 am UTC| Research & Analysis

After earlier gains today, USDCNY continues to trend lower again by trimming price from the peaks of 6.7277 levels, breaching below 6.7101 (21-DMA) would attract more bearish potential. The central bank keeps setting the...

FxWirePro: Implied thought on implied vols and trade ideas

Aug 02, 2017 08:36 am UTC| Research & Analysis Insights & Views

A lot of what we had expected has come to fruition so far in 2017, even if we had not expected the sheer magnitude of the depression in equity volatility, which continues to be the single most salient feature of volatility...

FxWirePro: Diagonal Credit Put Spreads for NZD/USD 1m3m skews

Aug 02, 2017 07:50 am UTC| Research & Analysis Insights & Views

After a disappointing GDT auction, attention will shift to the 2Q labor report with consensus looking for +0.7% QoQ employment and 4.8% unemployment (WBC 4.9%). The lack of wage growth is a global phenomenon and so wage...

FxWirePro: NZD/USD bullish and bearish perspectives and swap rates

Aug 02, 2017 07:47 am UTC| Research & Analysis Insights & Views

The spot NZDUSD prices seem to be fragile to correcting further towards 0.7400 for the day. Medium term perspectives: Stretched technical indicators and stretched long positioning argue for a decent downward correction,...

FxWirePro: USD/NOK risk reversals seem worthy than euro crosses

Aug 01, 2017 13:08 pm UTC| Research & Analysis Insights & Views

For those eyeing cheap optionality to protect returns against an abrupt Euro reversal, USDNOK risk reversals are worth keeping an eye on. NOK has been helped by higher oil prices, but HUF, PLN, and even GBP have...

FxWirePro: Dual strong thematic but defensive trade ideas in cross assets via variance swap spreads

Aug 01, 2017 12:52 pm UTC| Research & Analysis Insights & Views

We have suggested two cross-asset variance swap spread trades since the note, and there are important lessons that we have learned in a low-vol environment. As these trades are most likely to be used for carry in a low-vol...