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FxWirePro: Avoid exaggeration in Scandis, welcome EUR/SEK correction but load up NOK/SEK longs

Dec 06, 2017 11:35 am UTC| Research & Analysis Insights & Views Central Banks

Dear reader, lets not blow out of the proportion in EURSEK. Yes, the psychological mark of 10 is indeed luring factor. And yes, real interest rates in Sweden are very low. However, the economy is humming and the Riksbank...

FxWirePro: A run through on shorting 1y USD/JPY skews ahead of committed BoJ

Dec 06, 2017 09:44 am UTC| Research & Analysis Central Banks 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: Aggressive GBP/JPY volatility investors to prefer cheaper ATM strikes over exorbitantly priced OTMs ahead of BoE and BoJ monetary policies

Dec 06, 2017 07:46 am UTC| Research & Analysis Central Banks Insights & Views

The Japanese yen has been falling modestly possibly due in part to expectations of BoJ that is scheduled for mid of this month (20th Dec). Sterling is sitting close to recent highs ahead of next weeks BoEs monetary policy...

FxWirePro: UK PMIs signal mixed bag sentiments, 2m skews still indicate bearish risks, and OTM puts trading at reasonable premium

Dec 06, 2017 06:29 am UTC| Research & Analysis Insights & Views

The IHS Markit/CIPS UK Services PMI fell to 53.8 in November 2017 from a six-month high of 55.6 in the previous month and below market expectations of 55. Business activity and volumes of new work grew at a softer pace...

FxWirePro: CBOE to unveil hot potatoes - Asset bubble or Carry over, BTC derivatives to have silver lining

Dec 05, 2017 12:42 pm UTC| Digital Currency Research & Analysis Insights & Views

Before we begin with this write-up, lets just know as to how the price of Bitcoin (or any other cryptocurrencies) seems to have exceeded the price of gold briefly for the first time this week; however, this comparison is...

FxWirePro: Polish zloty clutches firmer amid lingering hawks and doves in NBP – Smart EUR/PLN hedging through diagonal call spreads

Dec 05, 2017 12:24 pm UTC| Central Banks Research & Analysis Insights & Views

EURPLN has been attempting to bounce back from the lows of 4.1988 levels in the latest trading session, however, one could make out that the trendof the underlying spot FX moves is stuck in the range between 4.2159 and...

FxWirePro: Eurozone service PMIs cause EUR/AUD vols play in action, skews of far-month tenors signal bullish risks – Achieve optimized hedging via call ladder

Dec 05, 2017 11:28 am UTC| Research & Analysis Central Banks Insights & Views

The RBAs monetary policy statement hasnt been a material change, but a possible point of difference may be around the currency given that the AUD TWI has fallen back to near 2017 lows. In Europe, the focus would...

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