Bank of Japan Signals Potential Rate Hike as Inflation Risks Rise Amid Energy Shock 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Wall Street Analysts Weigh in on Latest NFP Data 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Urban studies: Doing research when every city is different 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
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
