FxWirePro: Sterling’s OTC indications move in sync with forecasts

Jul 28, 2017 07:29 am UTC| Research & Analysis Insights & Views

Before we begin with this write u, lets just glance through GBP IV skews and delta risk reversals of GBP crosses. Please be noted that the positively skewed IVs of GBPJPY of 6m tenors signify the hedgers interests in...

FxWirePro: Judicious interpretations of GBP/JPY vols convexity and skewness

Jul 28, 2017 06:56 am UTC| Research & Analysis Insights & Views

Please be noted that the positively skewed IVs of GBPJPY of 1m tenors signify the hedgers interests in OTM put strikes. Whereas IVs of these tenors are just shy above 9.12% which is highest among G7 currency space, while...

FxWirePro: USD against EM Asian baskets - Deploy USD/CNH calendar straddles on Yuan’s mild stiffness

Jul 27, 2017 13:20 pm UTC| Research & Analysis Insights & Views Central Banks

Against the backdrop of continued USD weakness, USDCNY dipped below 6.74 this morning, although the PBoC set the fixing rate even lower at 6.7307. Yesterday afternoon, we saw decent selling USD flows from corporates in...

FxWirePro: Buy USD/RUB knock-in call spreads on hopes of CBR’s dovish rhetoric

Jul 27, 2017 11:07 am UTC| Research & Analysis Insights & Views

USDRUB is up from yesterdays lows of 55.9615 to the current 59.3750, while EURRUB rose 1.27% to 69.5690 while articulating. For now, the spot long USDRUB trade recommendations are not encouraged, for a profit of 4.15%...

FxWirePro: Is skew-ATM volatility of USD/RUB justifiable? Menace of US sanction on Russia drives CBR dovishness

Jul 27, 2017 10:28 am UTC| Central Banks Research & Analysis Insights & Views

The planned US sanctions against Russia mark a new low in the political relations between the two countries. The US legislation projects new sanctions against state-owned Russian companies in the mining, metal, shipping...

FxWirePro: Fundamental drivers and valuations of USD/JPY

Jul 27, 2017 08:26 am UTC| Central Banks Research & Analysis Insights & Views

The US Fed left policy unchanged yesterday evening, as expected, but the accompanying statement did express more concern about the recent softness in prices. The FOMC statement seems to have been the trigger rather than...

FxWirePro: What-if scenarios of USD/JPY – Bid positive shifts in RR for deploying OTM put writing in debit put spreads

Jul 27, 2017 07:44 am UTC| Research & Analysis Insights & Views

Today many analysts will give in to the temptation of putting the impressive collapse of the USD we are currently seeing down to the small changes in the FOMC statement. Well, the changes related to (a) the planned...