FX Hedging Strategy Series

FxWirePro: SARB inaction in benchmark but shift in forecasts – lingering headwinds indicate USD/ZAR upside risks and IVs conducive for option spreads

Jan 25, 2017 12:28 pm UTC| Research & Analysis Insights & Views Central Banks

In the recent unanimous decision of South African central bank (SARB), benchmark rateisunchanged at 7% as had universally been projected. However, the SARB increased its projections and now only expects the overall rate to...

FX Hedging Strategy Series

FxWirePro: Can MXN and TRY be deceptive? Don’t catch falling knife as rising EMFX hedging ratio prolongs

Jan 25, 2017 11:33 am UTC| Research & Analysis Insights & Views

We highlight a number of tactical signals for the FX market and some options concepts that could accomplish well in a market scenario characterized by the US dollar strength over the medium term. Since the election of...

FX Hedging Strategy Series

FxWirePro: AUD/JPY calendar spreads seem right hedging vehicle amid BoJ, RBA monetary policy stances and JGB apprehensions

Jan 25, 2017 11:13 am UTC| Central Banks Research & Analysis Insights & Views

The two main risks to our bearish AUD view are that 1) The currency is dragged higher in a more sustained re-rating of the global growth outlook, and that 2) The better global news and some signs of housing...

FX Hedging Strategy Series

FxWirePro: Further EUR downside potential but not faster than JPY, EUR/JPY downtrend likely to ease

Jan 25, 2017 07:52 am UTC| Research & Analysis Central Banks

The massive dollar uptrend is peaking with the massive repricing of yields triggered by the December Fed meeting. The FX space is now in consolidation mode, and the recent FOMC minutes were either neutral or slightly...

FX Hedging Strategy Series

FxWirePro: EUR/JPY hedging perspectives - OTC to offer room for improving odds in put ratio back spreads

Jan 25, 2017 07:35 am UTC| Research & Analysis

Weve already highlighted in our recent write ups on richness in EURJPY skews. For more reading on EURJPY IV skews, please follow below web...

FxWirePro: NZD/SEK levered option trades cushioned by valuations terms and macros

Jan 24, 2017 13:07 pm UTC| Economy Research & Analysis Insights & Views

In 2017 the FX outlook, we describe our stance on SEK as grudgingly constructive; constructive because the currency was undershooting short-and medium-term fair-value by an egregious amount; grudging because we were wary...

FxWirePro: Hedge in oil driven currency under Trump’s administration

Jan 24, 2017 12:58 pm UTC| Economy Research & Analysis Insights & Views

The global macro backdrop for FX would likely stay unstable for at least the next several months, through the first hundred days of the incoming Trump administration. The markets latched onto a Trump policy narrative...