FxWirePro: Snippets of low delta EUR puts and low-beta USD play in Asian FX
Feb 21, 2018 11:56 am UTC| Research & Analysis Insights & Views
EURUSD and USDCHF 6M-1Y 35D USD call vols: The belly of G7 vol curves is good value to own in our view since they have lagged the rally in shorter-expiries, and should find buying support from value hunters as relatively...
FxWirePro: WTI crude perspectives – Trade strangle short and hedge via calls spreads
Feb 21, 2018 09:41 am UTC| Research & Analysis Insights & Views
Crude prices were mixed yesterday, as lower-than-expected inventories buoyed the U.S. crude grade while refinery maintenance in Europe weighed on oil prices in the region but tumbled sharply today, weighed by the U.S....
FxWirePro: Confluence of trios to propel VIX in 2018
Feb 21, 2018 08:30 am UTC| Research & Analysis Insights & Views
It has taken a monumental VIX shock for the realization to dawn that the low volatility patch of 2017 is now history. Front-end FX vols had been climbing for the better part of the New Year on heavy demand for USD puts and...
FxWirePro: GBP/JPY what-if scenario analysis, OTC setup and hedging perspectives
Feb 21, 2018 06:43 am UTC| Research & Analysis Insights & Views
Bearish GBPJPY scenarios: 1) CPI peaks and wage growth fails to accelerate to 3%; 2) The balance of payments pressure (capital repatriation from LT investors; current a/c stuck at 4-5%). 3) PM May faces a...
Feb 20, 2018 12:25 pm UTC| Research & Analysis Insights & Views
As expected, yesterday was a relatively quiet session and we may be set for another. A number of surveys are released today, with the UK CBI industrial trends and German ZEW the most important among them. The market was...
Feb 20, 2018 12:00 pm UTC| Research & Analysis Insights & Views
In our view, the medium-term prospects for Brexit and by extension GBP remain in a state of uncertain political flux. Investors may have assumed that a transition was a done deal but there are substantive aspects of the...
FxWirePro: GBP/AUD iron condors for trading on tepid IVs and bearish neutral RRs
Feb 20, 2018 11:13 am UTC| Research & Analysis Insights & Views
FX markets were a sideshow to the plunge in US equities and spike in equity volatility this past week. But should this equity market volatility persist there will be the greater risk of near-term FX de-risking. This leaves...
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