FxWirePro: Not much Europe political risk priced into EM euro crosses – Outright trades for hedging
Feb 15, 2017 13:15 pm UTC| Research & Analysis
Despite being an underperformer in G10 in the past month, EUR still screens near fair value on this framework, indicating that little political risk is priced in ahead of the French elections. This is also consistent with...
FxWirePro: Why and how do swaptions render tail risks of French polls and EUR/USD?
Feb 15, 2017 12:59 pm UTC| Research & Analysis Insights & Views
Well, the risks around the outcome of the Presidential French election needs to be analyzed in conjunction with the Parliamentary vote when you ponder over EURUSD risks. We believe that the political agenda of the newly...
Feb 15, 2017 11:40 am UTC| Central Banks Research & Analysis Insights & Views
We encourage longs in USDRUB for long term investing amid short-term slumps, the broader setback to the dollar combined with upward pressure on oil prices to new highs this week have conspired to pull USDRUB lower in short...
Feb 15, 2017 10:13 am UTC| Research & Analysis
This weeks price action on oil benchmarks traversed almost the entire range within which prices have been held since early December, despite a near record build in US crude inventories appearing in the weekly EIA...
FxWirePro: Intricacies of bullish and bearish scenarios of Yen and hedging perspectives
Feb 15, 2017 05:44 am UTC| Research & Analysis
Bearish Yen: USDJPY to 125 if 1) strong US growth leads aggressive Fed hikes and a spike in UST yields, resulting in broad USD strength, 2) Japanese governments fiscal policy becomes more expansionary and the BoJ finances...
Moody's: Chinese local government incentives hinder central government reform agenda
Feb 15, 2017 03:34 am UTC| Research & Analysis
Moodys Investors Service says that misaligned incentives between Chinas (Aa3 negative) central and regional and local governments (RLGs) are an obstacle to economic reform and rebalancing, a credit negative. In...
FxWirePro: Diagonal debit credit spreads to hedge USD/MXN as Mexican peso going with EMFX trend
Feb 14, 2017 12:26 pm UTC| Research & Analysis Commentary
The sentiment towards EM currencies remains quite positive. Even the long-suffering Mexican peso is able to benefit from this development. Some commentators have already declared that the peso has seen the worst. Ofcourse,...
Germany lowers voting age to 16 for the European elections
IceCube researchers detect a rare type of energetic neutrino sent from powerful astronomical objects