FxWirePro: UK inflation beats consensus, if not Cable’s spot trade, excitement in EUR/GBP vol trades

Dec 12, 2017 11:16 am UTC| Research & Analysis Insights & Views Central Banks

Consumer prices in the United Kingdom rose by 3.1 pct in the year to November 2017, following a 3 pct gain in the previous month and beating market expectations of 3 pct. It was the highest inflation rate since March 2012,...

FxWirePro: Never blow FOMC out of the proportion, FX OTC indicates timely and proportionate quantum of hedging

Dec 12, 2017 10:45 am UTC| Research & Analysis Central Banks Insights & Views

Amongst these crosscurrents, next weeks FOMC meeting might seem a sideshow. The meeting should deliver a rate hike that is largely priced, with even odds that the Committee adds the fourth dot to its 2018 projections, you...

FxWirePro: DAX, CAC and US exporters need smart hedging in 2018

Dec 12, 2017 07:08 am UTC| Research & Analysis Insights & Views Central Banks

The currency market has been acting as the adjustment factor between countries positioned at different parts of the economic cycle clock. It has been one of the few assets on which carrying long volatility positions has...

Fed unlikely to pause rate hike cycle by early next year, says Barclays Research

Dec 12, 2017 06:06 am UTC| Commentary Central Banks Economy

The Federal Reserve is no longer expected to pause the rate hike cycle early next year for two main reasons. First, the nomination of Governor Powell as the next Fed chair, in our view, represents a vote for continuity of...

FxWirePro: Hedging FX themes amid FED and ECB on eve of X’mas

Dec 11, 2017 12:32 pm UTC| Research & Analysis Central Banks Insights & Views

The FX market reaction to the US labor market report on Friday was an ideal illustration of how the market operates at present. That means the real economic data would have justified USD appreciation, as positive as the...

FxWirePro: US job-market claim fast-forwards Fed to X’mas – Fresh hedgers to activate ATM straddles, attain euro’s bullish scepticism via call spreads

Dec 11, 2017 12:08 pm UTC| Research & Analysis Central Banks Insights & Views

While Christmas is fast approaching, this week is still a busy one for both policymakers and financial markets. Fed is scheduled to announce its funds rates on 13th Dec that is most likely to hike by 25 bps and ECB to...

Fundamentals to watch out for this week

Dec 11, 2017 11:12 am UTC| Commentary Economy Central Banks

This week is a filled with volatility risks, both in terms of data and events. What to watch for over the coming days: Central Banks: Federal Reserve will announce interest rate decision on Wednesday. Swiss...