Feb 24, 2017 11:25 am UTC| Research & Analysis Insights & Views
EUR risk short-lived: The recent tightening of the spread is essentially due to the political risk premium in Europe, which is currently supporting EUR vols. Our central scenario sees Marine Le Pen failing to win the...

FxWirePro: Mitigating asymmetric risk in EUR/AUD - Zero-cost call ladder to sell excess convexity
Feb 24, 2017 10:02 am UTC| Research & Analysis Insights & Views
EURAUD has lost about nine figures since the start of the year on the back of political fears pressuring the EUR and the risk-friendly mood supporting the AUD via metals. But the pair is now testing the 1.37 support. A...

Feb 24, 2017 06:13 am UTC| Research & Analysis Insights & Views
At spot reference: 112.89, USDJPY 3m risk reversals and IVs are indicating mounting hedging interests for downside risks (while articulating). While 1m IVs have collapsed 16 points to 11.16% and 3m IVs are spiking at...

FxWirePro: Quest in risk-on dynamics - High yielders in EMFX radar
Feb 23, 2017 10:12 am UTC| Research & Analysis Insights & Views
The strategy for trading EMFX encompasses a mixed bag. It is generally pro-risk through exposure to high yielders but with a modest long dollar bias by shorting low yielders that offer little value either from a carry or...

Feb 23, 2017 07:43 am UTC| Research & Analysis Insights & Views Central Banks
Weve been neutral in a 0.7130-0.7240 range for Kiwi dollar against US dollar. NZDUSD in medium term perspectives: The Feds tightening cycle plus US fiscal expansion should maintain upside pressure on US interest rates...
FxWirePro: Is this a necessity for CDS in euro bond market? Unwise to invite "Cowboy hedging"
Feb 23, 2017 05:43 am UTC| Research & Analysis Insights & Views
We sense that the political risk into the French election is priced more appropriately in bonds (but not in currencies) than going into the Brexit and US vote. In the remote scenario of a Le Pen Presidency with...
Feb 22, 2017 12:13 pm UTC| Economy Research & Analysis
Finance Minister Pravin Gordhan will present the new budget to parliament today. That means the conflict between Gordhan and President Jacob Zuma will enter the next round. So as to convince the rating agencies and ensure...