FX Hedging Strategy Series

FxWirePro: Exorbitant, less expensive and costless FX option structures to keep USD/CNY on check amid Dollar uptrend and PBoC adamance through H1’2017

Nov 30, 2016 05:52 am UTC| Research & Analysis

In recent months, the linkage between broad USD strength and CNY depreciation has increased. During every incidence of strengthening dollar in the past year, the PBoC chose to go with the tide and let the renminbi...

Moody's: China property sales to slow, price growth to decelerate in 2017

Nov 30, 2016 01:07 am UTC| Research & Analysis

Moodys Investors Service says national sales growth in Chinas (Aa3 negative) property market slowed to 38.3% year-on-year in October from 61.2% in September, and will continue to moderate following the governments...

FX Hedging Strategy Series

FxWirePro: PBoC FX mechanism imminent but why no counterbalancing mismatch in nominal GDP – Costless seagull structure for RMB further depreciation

Nov 29, 2016 12:37 pm UTC| Central Banks Research & Analysis

Exactly ayear ago, USDCNY was trading at 6.3180 (Nov2015) thats when (November/January 2015) the pair saw a sharp fall by the Yuan, but since April, the tactic has shifted to a slower move that has ruffled remarkably few...

FX Hedging Strategy Series

FxWirePro: “Limited yields but certain yields in EUR/CHF” - 1w1m OTC indication bids for short put butterfly spread

Nov 29, 2016 11:52 am UTC| Research & Analysis

Please be informed that the 1w implied volatilities of EURCHF ATM contracts are rising above 7.25% but have still been the least among G10 currency segment across all expiries. While the negative 25-delta risk of...

FX Hedging Strategy Series

FxWirePro: Bullion bets on deep out-of-the-money puts, 1m IVs and risk reversals to substantiate bearish sentiments on eve of Christmas rate hiking hopes

Nov 29, 2016 08:50 am UTC| Research & Analysis Central Banks

Please be noted that the priceof precious yellow metal has always been US rates sensitive commodity. And Fed is most likely to hike in this December meeting. The gold price is down over 14% from the recent highs of...

FX Hedging Strategy Series

FxWirePro: Hedging bets on G10 currency pool match with Spec position indicator of Risky vs. Safe currencies – Commodity driven FX remains in risky space

Nov 29, 2016 07:43 am UTC| Research & Analysis Insights & Views

The difference between net spec positions on risky safe currencies Net spec position is calculated in USD across 5 risky and 3 safe currencies (safe currencies also include Gold). These positions are then scaled by...

FX Hedging Strategy Series

FxWirePro: GBP/JPY Credit Put Spreads to deal with 2W1W IV skews ahead of UK data releases

Nov 29, 2016 06:58 am UTC| Research & Analysis

UK data radar: Net lending to individuals (BoE release) on Tuesday. GFK consumer confidence on Wednesday. PMI survey, manufacturing on Thursday. PMI survey, construction on Friday. OTC updates: Lets...