FX Hedging Strategy Series

FxWirePro: EUR/JPY put spreads bidding 2m risk reversals likely to fetch handsome yields and hedge event risks

May 25, 2016 09:03 am UTC| Research & Analysis Insights & Views

In next two months will see several developments, including notably the UK Brexit vote and the June FOMC meeting. While, the EUR/JPY 2m risk reversal is trading at extreme historical highs in favour of yen calls, close...

FX Hedging Strategy Series

FxWirePro: EUR/CHF IVs least among G10 currency space -

May 24, 2016 11:43 am UTC| Research & Analysis

ATM IVs of 1w expiries are just shy above 4%, and likely to pick up pace. Growing in snails pace even in 3m tenors. As a result, the delta neutral trading strategy in this case involves the buying of a theoretically...

FX Hedging Strategy Series

FxWirePro: Hedge gold risks via 3 way straddles versus calls as disparity between premiums and IVs

May 24, 2016 10:07 am UTC| Research & Analysis

Gold spot is attempting to break crucial supports, now on the verge of breaking 1240 levels, gold futures for June delivery on the Comex division of the NYME fell to a session low of $1,242.59 a troy ounce before...

FX Hedging Strategy Series

FxWirePro: Deploy NZD/JPY short put ladder on shrinking IVs to arrest further downside risks ahead of NZ trade balance

May 24, 2016 05:26 am UTC| Research & Analysis

Japan recorded a 823.47 JPY billion surplus in April of 2016, compared to a 58.34 JPY billion deficit a year earlier and beating market consensus of a 492.80 JPY billion surplus. It is the largest surplus since March...

FX Hedging Strategy Series

FxWirePro: AUD/USD OTC flashes puzzle, 1m IVs highest among G10 space - "Diagonal Credit Call Spreads" to beat puzzling swings

May 23, 2016 07:33 am UTC| Research & Analysis

OTC IVs and sensitivity table, we consider 1M ATM IVs at 12.00% at spot FX 0.7332 levels which is still the highest among G10 currency pool and 11.89% for 1W tenors. The pair still signals highest bearish sentiments...

FX Hedging Strategy Series

FxWirePro: AUD/NZD strip holders with gamma instruments to arrest further downside risks ahead of RBA and NZ trade balance

May 23, 2016 06:05 am UTC| Research & Analysis

The RBA surprised by cutting in May, which suggests another cut to 1.5%, probably in August. The RBNZ is expected to cut to 1.75% in June. With both central banks behaving similarly near term, we would expect the cross...

Moody's: Thai banking system stable over the next 12-18 months; strong loss buffers and steady profit

May 23, 2016 01:57 am UTC| Research & Analysis

Moodys Investors Service says that the outlook for Thailands banking system is stable over the next 12-18 months, and reflects primarily the banks strong loss absorption buffers. The banks high provisions and strong...