May 11, 2017 06:51 am UTC| Central Banks Research & Analysis Insights & Views
At its May interest rate review, the Reserve Bank of New Zealand kept the Official Cash Rate (OCR) on hold at 1.75%, as expected. However, the RBNZ also concluded that developments since the February Monetary Policy...

May 10, 2017 13:29 pm UTC| Research & Analysis Insights & Views
Macro outlook: In the UK, Politics continues to dominate the headlines, with further signs that the UK and the EU are entering the Brexit negotiations some distance apart. PM May accuses the EU of interfering with...
FxWirePro: Uphold longs in Swedish Krona versus EUR and JPY via cash, append optionality against NZD
May 10, 2017 11:45 am UTC| Research & Analysis Insights & Views
SEK has been through the mangle this week and we narrowly avoided being stopped in EURSEK. The pressure on the currency stems more from positioning than a re-pricing of monetary policy indeed, fair-value for EURSEK has...

FxWirePro: Hedging perspectives of Aussie dollar on mounting bearish risk sentiments in OTC
May 10, 2017 10:34 am UTC| Research & Analysis Insights & Views
We open a short position in AUD this week, in part because it offers exposure to a more extended period of soul searching around China (these policy-induced mini cycles tend to be reasonably durable and exploitable), in...
FxWirePro: Financial de-leveraging continues in China – Perspectives of CNH hedging vehicles
May 10, 2017 09:17 am UTC| Research & Analysis Insights & Views
There is no lack of news on measures to reduce financial leverages in China. The latest is a tightening of control on collaterals. Commercial banks are asked to adopt a comprehensive framework to manage collaterals,...

FxWirePro: What constraints delta-hedging in EUR/USD and EUR/JPY, what are alternatives?
May 10, 2017 08:46 am UTC| Research & Analysis Insights & Views
A by-product of the violent de-pricing of French election risk after the first round outcome is that back-end (1Y-2Y) EURUSD and EURJPY vols have crashed to near 2014 lows (refer above chart). This event-related...

May 10, 2017 06:12 am UTC| Research & Analysis Insights & Views
Back-end (2Y) EURUSD and EURJPY vols look deep value after the de-pricing of European political risk, and materially cheap adjusted for short-end FX and interest rate vols. A byproduct of the violent de-pricing of...