Apr 04, 2017 12:19 pm UTC| Central Banks Research & Analysis Insights & Views
EURJPY demonstrates the highest beta to Euro-turmoil for the obvious reason that both legs of the cross pull in the same direction during stress. The GFC period is deliberately excluded from the analysis assuming that a...
FxWirePro: EURO crosses higher and dollar crosses lower dual digitals
Apr 04, 2017 12:05 pm UTC| Research & Analysis Insights & Views
With limited room for Euro appreciation and the near certainty of a vol slump in the event of a Macron victory, long delta/short vega strategies such as EUR call flies appeal, and are well-priced in EURUSD and EURCAD....
FxWirePro: A glimpse on EONIA derivatives on ECB dovish rhetoric
Apr 04, 2017 11:01 am UTC| Central Banks Research & Analysis Insights & Views
The ECB rhetoric has reduced expectation of an early ECB lift off but the EONIA market is still pricing 10bp of tightening by Jun18. We acknowledge the risk of earlier lift-off relative to our baseline scenario. Close...
FxWirePro: BoC’s dovish stance keeps CAD growth at stake – Reverse knock outs EUR/CAD put flies
Apr 04, 2017 07:36 am UTC| Central Banks Research & Analysis Insights & Views
Along similar lines of EURUSD, we also like EUR call/CAD put flies. The macro view on CAD is negative on a mix of BoC dovishness, sensitivity to NAFTA renegotiation talk which is likely to re-enter headlines over the...
Apr 04, 2017 06:59 am UTC| Insights & Views Research & Analysis
The European recovery theme has become increasingly mainstream in recent weeks as continued Euro-area growth out-performance intersects with moderating political risks. Last week, we opened an outright long EURUSD...
FxWirePro: Long delta/short vega strategies as European political hedging vehicles
Apr 03, 2017 12:39 pm UTC| Research & Analysis
With limited room for Euro appreciation and the near certainty of a vol slump in the event of a Macron victory, long delta/short vega strategies such as EUR call flies appeal, and are well-priced in EURUSD and...
Apr 03, 2017 11:35 am UTC| Research & Analysis Insights & Views
AUDUSD in medium term perspectives:At arisk of testing 0.7800 during the next few weeks as USD longs are pared. Longer term we expect to see it slightly lower to around 0.7600. A steady hand from the Fed in June plus an...
Johannesburg in a time of darkness: Ivan Vladislavić’s new memoir reminds us of the city’s fragility
Why Germany ditched nuclear before coal – and why it won’t go back
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