FX Hedging Strategy Series

FX Hedging Strategy Series

FxWirePro: Hedge USD/MXN via diagonal call spreads amid inflationary uncertainties

May 11, 2016 05:56 am UTC| Research & Analysis Insights & Views

Mexican CPI data for April printed on Monday at 2.54% y/y, with the m/m measure printing at -0.32%. Whilst the data were slightly below expectations, whats clear is that inflation trends in Mexico are hardly robust,...

Briferendum Series

FX Hedging Strategy Series

Poll shows most UK listed firms hedging for pound to fall on Brexit

May 10, 2016 23:58 pm UTC| Research & Analysis

Reuters reported that four-fifths of Britains major companies have taken steps to hedge against the risk that a vote to leave the European Union will knock more than 10 percent off the value of sterling, a pollof almost...

FX Hedging Strategy Series

FxWirePro: Correlation between DXY and S&P – hedging dollar crosses

May 10, 2016 14:10 pm UTC| Insights & Views

The dollar index (DXY), which was well-correlated with the SP for much of last year, but isnt any more. The April FOMC meeting was more neutral, as the SP peaked again, but 10Y treasury yields couldnt break through 2%,...

FX Hedging Strategy Series

FxWirePro: Drivers of hedging euro against higher rates and risks associated

May 10, 2016 13:25 pm UTC| Commentary

As ECB keeps maintaining negative rate strategy and active asset purchase programme, we advocated rates strategy as follows in our recent write up: Buying EUR 2y5y ATMF payers vs selling 1y1y5y ATMF mid-curve payers...

FX Hedging Strategy Series

FxWirePro: ECB’s infinite stimulus but finite losses on hedging Euro rates through ATMFs

May 10, 2016 12:59 pm UTC| Commentary Central Banks

We see room for cutting the deposit rate to -0.75%, but there is no technical limit for an instance. With Draghi signalling that we are close to the limits on the deposit rate, however, further cuts are not likely in...

FX Hedging Strategy Series

FxWirePro: ECB’s negative rates and further APP dampen Euro’s growth, OTC indications to substantiate – hedge EURO in Brexit scenario

May 10, 2016 11:47 am UTC| Commentary Central Banks

Euro gained against dollar about 8.24% in last 5 and half months despite ECBs monetary policy pressures, but central banks pressures have hampered euros growth pace but confronting to address geopolitical issues. We see...

FX Hedging Strategy Series

FxWirePro: EUR/USD bulls give up after rejecting resistance at 1.1461 – Short via binaries for targets of 25-30 pips and 100 pips on delivery

May 10, 2016 09:00 am UTC| Technicals

Theeuro has started the trading week with tepid mood, extended minor gains upto 1.1419 levels but could not sustain to continue last weeks bearish sentiments again. On a broader perspectives, the pair has dropped from...