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Amid highly volatile economic environment, shielding currency exposure has become too risky than before. In this series we provide an intelligent insights and analysis on actionable FX derivative strategies that serve different levels of risk appetites and returns.

FX Hedging Strategy Series

FxWirePro: Is RBNZ easing season over? Capitalize on NZD/JPY abrupt rallies to deploy shorts in put ladder for hedging

Jan 08, 2016 07:06 am UTC| Technicals Central Banks

Reading between the lines: The RBNZ may have cut rates early in December but it also hinted the easing cycle may be over and that turned what ordinarily would be a currency negative event (a 25bps cut that was only 60%...

FX Hedging Strategy Series

FxWirePro: Crude downtrend moves in channel - hedge WTI risks as demand supply equation seems rampant

Jan 07, 2016 13:28 pm UTC| Insights & Views

We think this is nothing but demand supply equation seems heading a rampant, as per the US department of energy, demand during end of 2015 was weaker than at any time in more than ten years, and was 9.3% down on the YoY...

FX Hedging Strategy Series

FxWirePro: Crude continues to hurt CAD – USD/CAD Call Ratio Back Spreads to hedge extended upside risks

Jan 07, 2016 11:40 am UTC| Technicals

The New Year series has been subdued for CAD: on the back foot largely as a result of tumbling crude oil prices. The present-day situation has USDCAD trading to an 12-1/2 years high as crude oil prices forge a new cycle...

FX Hedging Strategy Series

FxWirePro: PBoC TWI weapon weighing CNY but bringing back surge in Chinese exports yet factor in – strategy for hedging receivables

Jan 07, 2016 08:19 am UTC| Insights & Views Technicals

We reckon that the USDCNY exchange rate determination will indeed mirror an increasing reference to the NEER currency basket even if the PBoC has not explicitly committed to this. The central bank set the yuans official...

FX Hedging Strategy Series

FxWirePro: Risk reversals signal “Yen taming both dollar and Euro”, EUR/JPY IVs back in action and so does PRBS

Jan 07, 2016 07:45 am UTC| Technicals

Please observe the IV factor for ATM contracts with 1w-1m expiries of Yen denominated currency crosses tops the risk reversal table for highest hedging activities eyeing downside risks. These negative risk reversals is...

FX Hedging Strategy Series

A glimpse on US inflation option market, FOMC in 2016 and EUR/USD vols

Jan 07, 2016 07:28 am UTC| Commentary

In addition to asymmetric Fed reaction function, we believe risks to wage inflation may be also asymmetric and skewed to the upside. In the US inflation options market, the liquid pillars are the 5Y and 10Y for ZC. For...

FX Hedging Strategy Series

FxWirePro: Close watch on AUD/USD’s break below 0.7070, on verge the of inverted saucer - vega spreads upon higher IV

Jan 06, 2016 14:06 pm UTC| Technicals

Observe the circled area on technical chart, we spot out a sharp gravestone doji candle at around 0.7285 that has shown its impact drag below. The pair has slid below strong supports at 0.7070 from the todays highs of...

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Economy

US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says

U.S. efforts to strengthen the Japanese yen may offer only temporary relief as Japans fiscal policies, wide interest-rate gap with the United States, and preference for a weaker currency continue to pressure the yen,...

Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist

Iran and Oman are nearing an agreement on shipping through the Strait of Hormuz, but Tehran says a bilateral deal alone will not be enough to fully reopen the critical global energy route. Iranian Foreign Minister Abbas...

Trump Unveils $3 Billion U.S. Critical Minerals Push

President Donald Trump announced roughly $3 billion in U.S. government investments and financing for critical minerals, battery materials and mining projects, part of a broader effort to strengthen domestic production and...

Oil Prices Set for Steep Weekly Losses as Hormuz Deal Stalls

Oil prices fluctuated on Friday and remained on course for sharp weekly declines as uncertainty surrounding a potential agreement to reopen the Strait of Hormuz continued to drive volatility across global energy markets....

Gold Prices Surge 7% as Dollar Falls, Fed Rate Hike Bets Ease

Gold prices rallied sharply on Friday, putting the precious metal on track for its strongest weekly performance since late January as a weaker U.S. dollar, lower oil prices and softer Federal Reserve rate hike expectations...

Politics

Germany Warns of Daily Hybrid Warfare Threats

Germany is facing foreign hybrid warfare operations on a daily basis, Interior Minister Alexander Dobrindt has warned after authorities discovered an explosive-carrying drone at Leipzig/Halle Airport. Dobrindt said hostile...

ICE to Complete Nationwide Body Camera Rollout by End of August

U.S. Immigration and Customs Enforcement (ICE) will equip all officers and agents working in the field with body-worn cameras by the end of August, accelerating a nationwide rollout that was initially expected to take...

Joe Biden’s Prostate Cancer Has Spread Further, Hunter Biden Says

Former U.S. President Joe Bidens prostate cancer has spread beyond his bones and is causing significant pain, according to his son, Hunter Biden, who discussed his fathers health in a BBC interview. Speaking to the BBCs...

Senate Majority Leader John Thune Moves to Advance Crypto Clarity Act

U.S. Senate Majority Leader John Thune has taken a key step toward advancing the Clarity Act, a major cryptocurrency regulation bill that could establish the first comprehensive federal framework for the U.S. crypto...

Taiwan President Lai Oversees Coastal Strike Drills in Han Kuang War Games

Taiwan President Lai Ching-te observed coastal strike drills on Saturday as the island continued its annual Han Kuang military exercises, designed to strengthen Taiwans defence readiness against a potential Chinese attack....

Science

Blue Origin New Glenn Explosion Could Delay Launch Operations Until 2028

Blue Origin is facing a significant setback after a dramatic explosion involving its New Glenn rocket severely damaged a launch pad at Cape Canaveral, Florida. According to NASA Administrator Jared Isaacman, repairs to the...

Blue Origin New Glenn Rocket Explodes During Launch Pad Test, Delaying Space Ambitions

Blue Origin suffered a major setback after its uncrewed New Glenn rocket exploded during a launch pad test in Florida on Thursday, raising new challenges for Jeff Bezos space company as it competes with Elon Musks SpaceX...

SpaceX Delays Starship V3 Launch Ahead of Potential Record IPO

SpaceX on Thursday postponed the highly anticipated launch of its 12th Starship rocket test from Texas after technical issues interrupted the final countdown. The company now plans to attempt the Starship V3 launch again...

Trump Administration Releases New UFO Files and Apollo Mission Records

The U.S. Defense Department has released dozens of previously classified UFO-related files following an order from President Donald Trump, sparking renewed debate over unidentified anomalous phenomena (UAP) and government...

China vs. NASA: The New Moon Race and What's at Stake by 2030

The space race is back and this time, its a direct competition between the United States and China for dominance on the lunar surface. NASAs Artemis II mission recently made history when four astronauts flew farther into...

Technology

Nvidia Seen Beating Q2 Targets as Vera Rubin Cycle Begins

Nvidia (NVDA) could enter a multi-quarter growth cycle as shipments of its next-generation Vera Rubin AI chips begin, with BofA Global Research forecasting stronger-than-expected quarterly results and maintaining a bullish...

OpenAI Restricts Astra AI Over Cyberattack Risks

OpenAI has reportedly restricted parts of the development of its next-generation AI model, code-named Astra, after early evaluations indicated the system could potentially carry out sophisticated cyberattacks with limited...

Nvidia to Invest Up to $3 Billion in Blackstone-Backed Lancium

Nvidia is reportedly preparing to invest as much as $3 billion in Lancium, a Blackstone-backed power infrastructure developer involved in the Stargate artificial intelligence infrastructure initiative, as demand for...

Meta Ordered to Pay $567M Over Child Safety Violations in New Mexico

Meta Platforms Inc. has been ordered to pay $567 million into a fund designed to address harm to young people, in a major legal ruling involving child safety on Facebook and Instagram. Judge Bryan Biedscheid of New Mexicos...

Nintendo Shares Jump as Switch 2 Sales Boost Earnings

Nintendo shares surged nearly 5% on Friday after the Japanese gaming giant reported stronger-than-expected first-quarter earnings and upgraded its full-year financial outlook, supported by robust demand for the new Switch...
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