FxWirePro: USD/CAD OTC setup and fundamental drivers for optimized hedging via collar spreads
Feb 19, 2018 11:06 am UTC| Research & Analysis Insights & Views
In this write-up, writing exorbitant calls in collar spreads amid cautious bears has been emphasized. Before that lets have a glance through the shrinking IVs in USDCAD that are creeping up a tad below 7.4-7.38% for...
FxWirePro: Shorting USDJPY near-month straddle vs longs in mid-month strangle
Feb 19, 2018 09:20 am UTC| Research & Analysis Insights & Views
The yen has erupted higher more recently than that (up 16% vs USD and 25% against GBP in 1H 2016 for example). Thats a reminder that when a currency is as cheap as the yen (USDJPY PPP is at 103 according to the OECD) it...
FxWirePro: AUD risk reversals ahead RBA monetary policy minutes
Feb 19, 2018 08:44 am UTC| Research & Analysis Insights & Views
Should hover just above 0.7900 during the day ahead given little data and US markets closed. AUDUSD in medium-term perspective:The reversal from 0.81 late Jan to 0.78 mid-Feb has removed much of the apparent AUD...
Feb 19, 2018 07:08 am UTC| Research & Analysis Insights & Views
Since the BoJ succeeded in killing yen volatility, USDJPY has been a proxy of dollar rates. Japanese long-term rates are following US rates, but have shown almost zero volatility for a year now (refer above graph). USDJPY...
FxWirePro: Spot the benefits of synthetic short EUR/USD delta exposure via EUR/CNH
Feb 16, 2018 12:48 pm UTC| Research & Analysis Insights & Views
One way of reducing/eliminating premium outlay on hedges is to fund OTM USD calls/CNH puts with shorts in EUR calls/CNH puts to effectively create synthetic short EURUSD delta exposure. The attraction of funding via EURCNH...
FxWirePro: Spot the benefits of synthetic short EUR/USD delta exposure via EUR/CNH
Feb 16, 2018 12:48 pm UTC| Research & Analysis Insights & Views
One way of reducing/eliminating premium outlay on hedges is to fund OTM USD calls/CNH puts with shorts in EUR calls/CNH puts to effectively create synthetic short EURUSD delta exposure. The attraction of funding via EURCNH...
FxWirePro: A run through zero-cost short dollar hedging vehicles
Feb 16, 2018 12:38 pm UTC| Research & Analysis Insights & Views
In December 2016, the dollar reached its third and smallest significant peak (in real terms) since 1980. The question of cheap short dollar hedges has frequently arisen in the recent past. In our latest write-ups, it was...
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