Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
Urban studies: Doing research when every city is different 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Wall Street Analysts Weigh in on Latest NFP Data 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
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
