FxWirePro: Relative value option structure in Gold/AUD with delta-hedge setup

Jun 11, 2018 13:47 pm UTC| Research & Analysis Central Banks

An exciting defensive RV options structure is long Gold/AUD ATM vs. short AUD/USD puts (both legs delta-hedge set-up). At multi-year lows, an artifact of uber-depressed Gold vols, the XAU/AUD-AUD/USD vol spread can be...

FxWirePro: Attain yields in Gold strength not only against USD but versus EUR weakness via call spreads

Jun 11, 2018 12:56 pm UTC| Research & Analysis Insights & Views Central Banks

The meetings of the major central banks should dominate this week, namely the Fed, the ECB and the BoJ. The ECB meeting, in particular, should be interesting, as the QE exit will be on the agenda. We expect dovish...

Fundamentals to watch out for this week

Jun 11, 2018 11:49 am UTC| Commentary Central Banks

In terms of volatility risks, this week is extremely heavy filled with data, central banks announcements and geopolitical events. What to watch for over the coming days: Central Banks: Federal Reserve will...

Fed Hike aftermath Series: Hike probabilities over coming meetings

Jun 11, 2018 11:19 am UTC| Commentary Central Banks

FOMC increased interest rates in March and maintained its forecast for three rate hikes in 2018. FOMC also forecasted a faster pace of hikes next year than previously forecasted. March decision was unanimous. Current...

FOMC likely to hike target range by 25 bps to 1.75-2.00 pct next week, no big changes seen in the dot plot: Danske Bank

Jun 08, 2018 07:35 am UTC| Commentary Central Banks Economy

The Federal Open Market Committee (FOMC) is expected to hike the target range by 25bp to 1.75-2.00 percent at its monetary policy meeting next week without making any big changes to the dot plot. The Fed is set to...

Central Bank of Turkey hikes repo rate by 125 bps to 17.75 pct

Jun 07, 2018 12:33 pm UTC| Commentary Central Banks

The Central Bank of Turkey hiked its key interest rate today. The CBRT raised the repo rate by 125 basis points to 17.75 percent, as compared with consensus expectations of the central bank to keep the rates unchanged....

ECB likely to signal close of asset purchase programme by end-2018 at next week’s meeting, says DNB Markets

Jun 07, 2018 09:02 am UTC| Commentary Central Banks Economy

The European Central Bank (ECB) is expected to signal that the asset purchase programme will be closed by the end of this year at its monetary policy meeting scheduled to be held next week, according to the latest research...