FX Hedging Strategy Series

FxWirePro: Uphold USD/SGD low premium call flies due to MAS NEER mechanism

Oct 24, 2016 13:58 pm UTC| Central Banks Commentary

Singapore dollar tumbled to 7-months lows to 1.3959 levels on disappointing growth flashes and the dovish tone of MAS. Q3 GDP grew by slower than anticipated at 0.6%. Following the MAS announcement, the Singapore dollar...

FX Hedging Strategy Series

FxWirePro: Expect bullish dollar amid mixed bag of US data - Positioning dollar strength via call flies in CAD

Oct 24, 2016 13:11 pm UTC| Central Banks Commentary

The recent data flow is mixed, but Fed hike by year-end remains likely. Some softer news on core inflation and jobless claims. The housing recovery likely to continue and we still have hope for factory sector improvement....

Eurozone's strong PMI reading stokes expectations of robust Q4, could fuel speculation of ECB taper

Oct 24, 2016 12:01 pm UTC| Insights & Views Economy Central Banks

Eurozone flash PMI data released earlier today showed that suggested that the regions economic recovery strengthened over the course of October. IHS Markits purchasing managers index (PMI) used by the European Central Bank...

BCB’s meeting minutes to show additional view on pace of gradual easing, says Societe Generale

Oct 24, 2016 11:43 am UTC| Commentary Central Banks

The Brazilian central banks Copom minutes are expected to give additional view on the pace of gradual easing of the monetary policy. As widely anticipated, the Brazil Central Bank, during its October meeting, began easing...

FX Hedging Strategy Series

FxWirePro: EUR/AUD 1m ATM IVs likely to take off owing to RBA and ECB’s QE – Deploy option strips as IV skews indicate OTM strikes significance

Oct 24, 2016 11:41 am UTC| Central Banks Commentary

It was more than obvious that the ECB would extend its QE programme beyond March 2017. As a result it did not seem necessary to mention in great detail that ECB President Mario Draghi indicated just that. It seemed...

EUR/CZK likely to trade above 29.0 level following CNB’s FX intervention

Oct 24, 2016 10:19 am UTC| Commentary Central Banks Economy

The EUR/CZK currency pair is expected to trade above the level of 29.0, if the Czech National Bank (CNB) intervenes in the foreign exchange market, or the koruna should be weaker by around 8% from the current...

FX Hedging Strategy Series

FxWirePro: USD/CNH hits 5-1/2 year highs owing to PBoC currency mechanism – Uphold call spreads and seagull structures on hedging radar

Oct 24, 2016 09:45 am UTC| Central Banks Commentary

The PBoC set USDCNY fixing rate at 6.7690 this morning, higher than our estimation at 6.7640. Afterward, USDCNY striked at 6.7747, the highest since 2010 when the CNH market was launched. Data compiled by SAFE showed...