FxWirePro: Uphold USD/INR RKOs as Indian rupee surged to 6-weeks highs amid low RVs
Nov 02, 2017 14:09 pm UTC| Central Banks Research & Analysis Insights & Views
The low realized vol and technical support suggest RKO put, INR volatility lies in the low vol bucket in the EM space (3m vol is trading below 6) but realized vol has remained constantly lower than implied vol since start...

FxWirePro: Why and what lures euro for options writing opportunity in cheaper bearish hedging?
Nov 02, 2017 12:59 pm UTC| Research & Analysis Insights & Views
Shift policy dynamics leads euro vols market downside, shrinking IVs, skews and neutral risk reversals lure cheap bearish hedging: Developments over the past week motivate two changes to our trade recommendations....

FxWirePro: Encourage GBP rates spreads as front end seems priced-in for potential BoE hikes
Nov 02, 2017 11:51 am UTC| Central Banks Insights & Views
The Bank of England is expected to announce an increase in interest rates for the first time in more than a decade, moving the Bank Rate up a quarter point to 0.5%. The recent shift in tone among policymakers partly...

Nov 02, 2017 10:48 am UTC| Central Banks Research & Analysis Insights & Views
A glimpse through fundamentals: ECB monetary policy will be on autopilot in the near future and thus diminish in importance as a driver for the euro in the coming weeks, leaving the currency open to vagaries of other...

Nov 02, 2017 09:02 am UTC| Central Banks Research & Analysis Insights & Views
The Federal Reserve last night maintained interest rates unchanged at 1-1.25%, as widely anticipated.The press statement was largely unchanged: it sounded a little more upbeat about recent economic developments, while...
Oct 30, 2017 14:20 pm UTC| Research & Analysis Insights & Views
EM currencies as a group were negatively affected by higher US bond yields this week, and the SA rand and Turkish lira were the worst performers in our sample. The South African Treasurys forecast of wider fiscal...
FxWirePro: Is buzz in VXY in the wake of Fed hawks and ECB doves reliable?
Oct 30, 2017 12:37 pm UTC| Research & Analysis Insights & Views Central Banks
What remains to be discussed is the significant USD strength. There is an easy explanation, namely the surprisingly strong US GDP growth figures released on Friday (Q3 2017: +3% QoQ in annualized terms; the forecast was c....