FxWirePro: EUR/JPY OTC indication dubious for uptrend? Ratify and hedge bullish sentiments optimally via RKOs

Aug 23, 2017 05:38 am UTC| Research & Analysis Insights & Views

Please be noted that the implied vols of euro crosses have been tepid despite the series data flows are lined up. Todays data announcements: France Markit Mfg, Service and composite Flash PMIs, Denmark Consumer...

FxWirePro: Relative value options trades between commodity currencies and sterling

Aug 22, 2017 12:45 pm UTC| Research & Analysis Insights & Views

The triangles between LoonieSterlingAussie to weaken elevated CAD-correlations: It is noted that umpteen numbers of times over the previous few weeks that CAD-denominated implied correlations are high, and they continue to...

FxWirePro: Loonie likely to gain traction on NAFTA, more USD/CAD retracements likely on policy spread narrowness

Aug 22, 2017 12:02 pm UTC| Central Banks Research & Analysis Insights & Views

Following the early-summer policy-shift and repricing of USDCAD lower, our medium-term projection remains for some modest retracement in USDCAD in the coming quarters. With downside broad dollar risks lingering longer, the...

FxWirePro: AUD/USD IV skews and bearish neutral risk reversals – Use Vega longs in Put Ratio Back Spreads as optimized hedging vehicles

Aug 22, 2017 10:52 am UTC| Research & Analysis Insights & Views

Bearish scenarios of AUDUSD below 0.73 given: 1) The unemployment rate moves back towards 6%, forcing the RBA to respond more aggressively to weak inflation; 2) The Fed responds to firm labor market outcomes and...

FxWirePro: Ambiguity and visibility linger around copper demand/supply equation - Scepticism on price recovery still remains intact

Aug 22, 2017 07:22 am UTC| Research & Analysis Insights & Views

The Chinese copper demand has been seriatim at a concrete pace in 1st half of 2017 owing to the strong performance of the consumer goods sector and firm infrastructure spending, but strong demand conditions in May and June...

FxWirePro: Mounting USD/JPY bearish risks, IV skews move in tandem with risk reversals – Deploy ATM delta puts in PRBS to arrest downside risks

Aug 22, 2017 06:23 am UTC| Research & Analysis Insights & Views

When we are strategizing hedging frameworks, we came across the implied volatility of ATM contracts across all tenors are spiking higher than 9.25%, the rationale is that all potential downswings should be optimally...

FxWirePro: Hedge EUR/CAD puzzling swings via diagonal call ratio spread on BoC monetary policy

Aug 21, 2017 12:11 pm UTC| Research & Analysis Insights & Views Central Banks

A reassessment of BoCs policy path will likely take time, and only after a second hike (expected October) is delivered, fully unwinding the 50bp of emergency cuts delivered in 2015 (hikes whose motivation seems more...