BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Wall Street Analysts Weigh in on Latest NFP Data 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Urban studies: Doing research when every city is different 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
BoE is scheduled for its monetary policy for this week. Ongoing political uncertainty indicates a continuation of the ‘wait-and-see’ message regarding the timing of the next bank rate hike.
Still, an expected upgrade to GDP growth in 2019 and the persistence of above-target inflation over the forecast horizon will do little to endorse the current ‘dovish’ market view on UK bank rate.
The urgency to hike anytime soon, however, is likely to be little changed, particularly with the outlook still clouded by the Brexit fog.
Let’s just quickly glance at GBPCAD 3m IV skews before looking at the options strategies.
The positively skewed IVs of this pair has also been stretched out on OTM Calls. This is conducive for options holders of OTM call options.
Contemplating above-explained bullish OTC sentiments signaled by the IV skews of the 3m tenors and fundamental factors, on trading perspective, debit call spreads are advocated as the buying indications are piling up on the daily graph.
Execute strategy by, buying 2w (1%) In-The-Money 0.69 delta call option and short 2w (1%) Out-Of-The-Money call option for a net debit. The strategy can be executed at net debit. Remember, deep in the money call with a very strong delta will move in tandem with the underlying, while short leg on Out-Of-The-Money call option is recommended to reduce the cost of hedging by financing long position in In-The-Money call option. Courtesy: Sentry
Currency Strength Index: FxWirePro's hourly GBP spot index has shown 45 (which is bullish), while CAD is flashing at -60 (bearish), while articulating at 12:33 GMT.
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
