FxWirePro: Don’t miss one-off opportunity – a run through on USD/CNH reverse spreads

Jun 07, 2017 06:54 am UTC| Research & Analysis Insights & Views

The sharp appreciation of CNH was a major development in FX markets this week. Coming on the heels of a change in the PBoCs daily USD/CNY fix mechanism the previous Friday, markets seem to have interpreted these moves as...

FxWirePro: CNH vols expressions via vega neutral straddles and vols spreads

Jun 06, 2017 12:30 pm UTC| Research & Analysis Insights & Views

The sharp appreciation of CNH was a major development in FX markets this week. Our working assumption is that the velocity, if not the extent of additional CNY strength will moderate going forward but not reverse...

FxWirePro: Worthy delta hedging lures EUR/USD as ECB heads to hawkish tone but changed forward guidance less likely

Jun 06, 2017 10:29 am UTC| Central Banks Research & Analysis Insights & Views

We expect a hawkish tone from theECBat the meeting in June after it was perceived as slightly dovish at the latest meeting. A lot of speculation among market participants has been on whether theECBwill change its...

FxWirePro: Short risk premium and calendar spreads as front-end vol spikes, nosedive in risk reversals overdone after CNH fireworks

Jun 06, 2017 10:10 am UTC| Research & Analysis Insights & Views Central Banks

The sharp appreciation of CNH was a major development in FX markets this week. Coming on the heels of a change in the PBoCs daily USDCNY fix mechanism the previous Friday, markets seem to have interpreted these moves as...

FxWirePro: Capitalize on shrinking AUD/USD IVs and bearish RR to arrest downside risks - Writing exorbitant puts for wise hedging via “Reverse Put Spreads”

Jun 06, 2017 08:08 am UTC| Research & Analysis Insights & Views

AUDUSD contained in a 0.7600-0.7700 range. AUDUSD medium term perspectives: Although the pair bounces off the 0.7450, the upside area should be limited to 0.7600. RBA has limited the downside on AUDUSD during the next...

FxWirePro: Why is market vol so low despite global monetary policy season?

Jun 06, 2017 06:20 am UTC| Research & Analysis Insights & Views Central Banks

Within next fortnight or so, we have series of monetary policy meetings lined up. A very low supply of economic surprises currently is by itself enough to explain the low level of market volatility. RBAs cash rate today...

FxWirePro: Macro trade recommendations – Stay short in AUD vs CHF and EUR, long in CHF vs USD

Jun 05, 2017 14:23 pm UTC| Research & Analysis Insights & Views Central Banks

AUD money markets rates have rallied by more than any other G10 currency over the past month (see above chart). In the process, the front-end of the curve has inverted again as rate cuts have started to be priced again...