FxWirePro: Glance through EUR/USD pricing and the intricacies of EUR/USD FVAs
Nov 15, 2017 09:47 am UTC| Research & Analysis Insights & Views
It is difficult for us to know why the market decided to react to the positive German GDP data by buying the euro and to price in a marginally higher likelihood of the first ECB rate step in late 2018. First of all the...
FxWirePro: What states EUR lower vols? Fair interpretations of two-decade lows
Nov 15, 2017 09:26 am UTC| Research & Analysis Insights & Views
The 1Y/5Y vol curve slope in EURUSD is a whisker away from all-time highs and is worth watching closely for a top since 1Y vol tends to pivot more than 2% pts higher from such peaks. The largely range bound exchange...
Nov 15, 2017 07:40 am UTC| Research & Analysis Insights & Views
The Mexican peso has come under depreciation pressure once again and this provided a first taste of what we are likely to face over the coming days. We expect MXN to stabilize around 18.80 on domestic and NAFTA...
FxWirePro: Activate USD/TRY longs via vanilla call on fragile Turkish CAD
Nov 15, 2017 05:59 am UTC| Research & Analysis Insights & Views
Turkeys current-account deficit widened to $4.53bn in September, worse than consensus expectations. On a seasonally-adjusted basis, September saw nearly a doubling of the gap to $6.1bn from $3.2bn in August, with the...
Announcement: Moody's: Outlook for Korean corporates stable, supported by steady external conditions
Nov 15, 2017 01:48 am UTC| Research & Analysis
Moodys Investors Service says that the outlook for rated Korean non-financial corporates is stable, supported by healthy global economic growth. We expect financial leverage to remain broadly stable due to steady...
Nov 14, 2017 12:35 pm UTC| Research & Analysis Insights & Views Central Banks
The current market condition is not a stable equilibrium -without rate hikes as a circuit breaker, TRY could weaken substantially. Now that the market has jumped to pricing in significant rate hikes, an under-delivery...
FxWirePro: Snippets on Emerging Asian FX – USD/KRW DNT on track of delivering desired yields
Nov 14, 2017 12:18 pm UTC| Research & Analysis Insights & Views
China received less attention than normal, but prevailing sentiment was that little will change post-CPC: reforms and deleveraging would be slow and targeted, risks of the debt crisis are low (for now), and ultimately the...
Johannesburg in a time of darkness: Ivan Vladislavić’s new memoir reminds us of the city’s fragility
Economist Chris Richardson on an ‘ugly’ inflation result and the coming budget
Labour can afford to be far more ambitious with its economic policies – voters are on board
Sudan: civil war stretches into a second year with no end in sight