FxWirePro: Mounting IVs of USD/MXN on lingering expectations of Banxico’s rate hike

Mar 30, 2017 13:01 pm UTC| Central Banks Insights & Views

As regards the Bank of Mexicos (Banxico) rate decision today analysts expect a further rate hike by at least 25bp. As this is largely priced in on the market the peso is unlikely to appreciate notably in thecase of a 25bp...

FxWirePro: Fed’s balance sheet normalization and interest rate volatility markets - Receive in 3Mx3M GC swaps versus matched OIS

Mar 30, 2017 12:47 pm UTC| Central Banks Insights & Views

In the recent past, markets have been so cautious on the potential impact of Fed balance sheet normalization on interest rate volatility markets. At a high level, though in principle the return of significant mortgage...

FxWirePro: BoC’s monetary policy and crude outlook weigh more on EUR/CAD - “Diagonal Debit Put Spread” to arrest uncertainties

Mar 30, 2017 12:33 pm UTC| Central Banks Insights & Views

The statement from BoCs March 1st meeting reiterated the point that, unlike the US, Canada was an economy that continues to be beset by material excess economic slack, and thus warrants a policy stance that remains very...

FxWirePro: French hedges – Front end gamma, EURIBOR fly and straddle

Mar 30, 2017 09:33 am UTC| Central Banks Insights & Views

The political risk in 2Q and the ECB have been lingering as the main drivers of Euro area rates, while Brexit negotiations are expected to take the back stage as Article 50 is triggered next week. We anticipate receding...

Central Banking Series

BoJ likely to keep monetary policy unchanged despite upward pressure on global yields, says Danske Bank

Mar 30, 2017 07:52 am UTC| Commentary Central Banks Economy

The Bank of Japan (BoJ) is expected to keep its monetary policy unchanged throughout this year despite the rising upward pressure on global bond yields. This implies the central bank maintaining its target for the...

FxWirePro: The Day Ahead- 29th March 2017

Mar 30, 2017 05:03 am UTC| Commentary Economy Central Banks

Lots of economic dockets and events scheduled for today and some with high volatility risks associated. Data released so far: Australia: HIA new home sales rose by 0.2 percent in...

FX Hedging Strategy Series

FxWirePro: Uphold longs in Jun’17 CME gold as bullion’s safe-haven sentiment back in action on political risks engulf real interest yields

Mar 29, 2017 13:53 pm UTC| Central Banks Commentary

In this latest quarterly report on metals, our emphasis is that based on our analysis, gold should likely trade within a narrow range of about $170/oz this year and should be fairly valued between $1,130-1,300/oz as higher...