FxWirePro: Macro trade recommendations – Stay short in AUD vs CHF and EUR, long in CHF vs USD
Jun 05, 2017 14:23 pm UTC| Research & Analysis Insights & Views Central Banks
AUD money markets rates have rallied by more than any other G10 currency over the past month (see above chart). In the process, the front-end of the curve has inverted again as rate cuts have started to be priced again...
Jun 05, 2017 12:20 pm UTC| Research & Analysis Insights & Views
The EURUSD vols have been belligerently sold off in the aftermath of the French presidential election. The markets hailed the election of Macron, shielding a very pro-European programme. The majority of the risk was...
FxWirePro: IVs fumble in Euro options owing to election risk premium in the Italian edition
Jun 05, 2017 11:52 am UTC| Research & Analysis Insights & Views
Euro options and election risk premium the Italian edition Election risk premium is once again the story in Euro options, this time a potential September/October vote in Italy. EUR-and EUR-cross options spanning September...
FxWirePro: CLP underperformance upside down - Deploy USD/CLP NDFs to hedge
Jun 05, 2017 11:24 am UTC| Research & Analysis Insights & Views
Stay short in 3m USDCLP NDF: Sell USDCLP 3m NDF at 672.85 with the target at 640 (5.1%) and stop above the top end of the range at 684 (-1.65%). The trading horizon is 3 month and it offers a positive carry of...
FxWirePro: Cost-effective structure to capture a RUB correction – Use 3m forwards
Jun 05, 2017 07:38 am UTC| Research & Analysis Insights & Views
Beware a RUB correction Are you concerned that RUB positioning is too heavy, stagnant price action is a warning sign, fundamentals could turn, and a significant correction could happen? We are. In the recent past weve...
FxWirePro: Fetch advantageous skewness in USD/RUB via knock in
Jun 05, 2017 07:36 am UTC| Research & Analysis Insights & Views
Option Trade Strategy: Buy 3m USDRUB call strike 59, Sell call strike 62 knock-in 65 Indicative offer: 1.23% (vs 1.06% for the vanilla call spread, spot ref: 56.50) The position entails buying a USDRUB 3m call strike 59...
Jun 01, 2017 03:42 am UTC| Research & Analysis
Moodys Investors Service says that India (Baa3 positive) is implementing a number of wide-ranging reforms that if successful, would gradually ease the governments high debt burden, which represents a key constraint on the...
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