FX Hedging Strategy Series

FX Hedging Strategy Series

FxWirePro: MXN still appears vulnerable despite lingering hopes of Banxico rate hikes – Affix married ATM gamma puts on 1m HY IVs for hedging

Nov 16, 2016 11:44 am UTC| Central Banks Commentary

As expected, the MXN plunged on Trumps victory. We had warned previously that the MXN was not pricing much in terms of excess premium going into the US election, which explains the move higher in USDMXN following the...

FX Hedging Strategy Series

FxWirePro: Never buck USD/TRY major trend, bulls rout all set to retest all-time highs – “Diagonal Call Spreads” on its functionality”

Nov 16, 2016 10:25 am UTC| Technicals

The pair is edging higher at 3.3073 levels, likely to retest all-time highs of 3.3164 levels. Please be noted that the pair has consistently been spiking higher above DMAs, we advise capturing dips to add longs as it is...

FX Hedging Strategy Series

FxWirePro: GDT index in line with projections – “Vertical Straps” to speculate and hedge AUD/NZD swings on monetary policy divergence

Nov 16, 2016 08:56 am UTC| Central Banks Research & Analysis

TheGDT dairy auctionovernight resulted in a 5% rise overall, with WMP up 3% and SMP up 10%. The result is roughly in line with earlier futures predictions which had priced in a response to weather affected...

FX Hedging Strategy Series

FxWirePro: Selective asks to selective bids of EMFX vols and risk-reversals after Trump causes bristling strength in dollar

Nov 15, 2016 13:24 pm UTC| Central Banks Insights & Views

A glimpse: The USD rally caused by Donald Trumps election victory and based on rising inflation and interest rate expectations continued again yesterday. That means the market is pricing in acceleration in Fed rate hikes...

FX Hedging Strategy Series

FxWirePro: Mounting bearish hedging sentiments in Bullion OTC – Bidding XAG/USD ATM puts on 1M HY IVs and bearish delta RR to optimize PRBS

Nov 15, 2016 12:27 pm UTC| Central Banks Research & Analysis

The ATM IVs of silver of 1w-1m expiries are spiking higher crazily, 1m IVs are shy above 29.50% that encompasses Feds rate hike speculations (as we get closer to December, the investors are currently pricing higher chances...

FX Hedging Strategy Series

FxWirePro: Euro 6m-1y vols likely to spike - Uphold higher EUR and JPY-cross vols against EM and high-beta FX

Nov 15, 2016 10:38 am UTC| Commentary

You see higher and steeper 6M-1Y EUR vols: you could make this out from the IV nutshell, rising hedging interests during this span. Europe faces one constitutional referendum (Italy in December) and three to four...

FX Hedging Strategy Series

FxWirePro: RBA minutes hint on steady rates to monitor inflation - Deploy Diagonal Credit Put Spreads to monitor AUD/USD swings

Nov 15, 2016 09:23 am UTC| Central Banks Research & Analysis

The minutes from the November Board meeting were broadly consistent with the narrative from the recent Statement on Monetary Policy, as expected. The RBA continues to monitor the risks around the labor market, housing...