
Eurozone inflation outlook improves in ECB survey, adds to the central bank's dilemma
May 10, 2017 11:59 am UTC| Insights & Views Economy Central Banks
The recently released European Central Bank (ECB) Survey of Professional Forecasters for the second quarter of 2017 shows that inflation in the eurozone will pick up in future but remain driven by volatile food and energy...
FxWirePro: Uphold longs in Swedish Krona versus EUR and JPY via cash, append optionality against NZD
May 10, 2017 11:45 am UTC| Research & Analysis Insights & Views
SEK has been through the mangle this week and we narrowly avoided being stopped in EURSEK. The pressure on the currency stems more from positioning than a re-pricing of monetary policy indeed, fair-value for EURSEK has...

FxWirePro: Hedging perspectives of Aussie dollar on mounting bearish risk sentiments in OTC
May 10, 2017 10:34 am UTC| Research & Analysis Insights & Views
We open a short position in AUD this week, in part because it offers exposure to a more extended period of soul searching around China (these policy-induced mini cycles tend to be reasonably durable and exploitable), in...
FxWirePro: Financial de-leveraging continues in China – Perspectives of CNH hedging vehicles
May 10, 2017 09:17 am UTC| Research & Analysis Insights & Views
There is no lack of news on measures to reduce financial leverages in China. The latest is a tightening of control on collaterals. Commercial banks are asked to adopt a comprehensive framework to manage collaterals,...

FxWirePro: What constraints delta-hedging in EUR/USD and EUR/JPY, what are alternatives?
May 10, 2017 08:46 am UTC| Research & Analysis Insights & Views
A by-product of the violent de-pricing of French election risk after the first round outcome is that back-end (1Y-2Y) EURUSD and EURJPY vols have crashed to near 2014 lows (refer above chart). This event-related...

May 10, 2017 06:12 am UTC| Research & Analysis Insights & Views
Back-end (2Y) EURUSD and EURJPY vols look deep value after the de-pricing of European political risk, and materially cheap adjusted for short-end FX and interest rate vols. A byproduct of the violent de-pricing of...

Tiny houses: the big idea that could take some heat out of the housing crisis
May 10, 2017 00:33 am UTC| Insights & Views Real Estate
If you could have a new home, exactly to your specification for about a years average salary wouldnt you take it? Many people, in the US, UK and Europe want to find an alternative housing solution that is cheap and...