FxWirePro: EUR/GBP ATM puts seem costlier as there exists disparity between IVs and premiums
Dec 03, 2015 09:19 am UTC| Technicals
Everyone dealing with Euro expecting ECB to increase easing volumes, but for now it seems unlikely that the QE volume has to be increased to 70, 75 or 80 billion and the deposit rate is lowered by 10, 15 or 20...
FxWirePro: EUR/JPY OTC market pricing in sync with IVs
Dec 03, 2015 07:05 am UTC| Technicals
Please observe the IV factor for ATM contracts with 1w expiries. It is taking off from last weeks 8% to a steep jump at 12.75% ahead of ECB meet today. On the flip side, as shown in the diagrammatic representation...
FxWirePro: Reiteration of EURO’s vulnerability - EUR/USD diagonal PRBS hedges
Dec 02, 2015 09:43 am UTC| Technicals
Everyone expects ECB to increase easing volumes, but for now it seems unlikely that the QE volume has to be increased to 70, 75 or 80 billion and the deposit rate is lowered by 10, 15 or 20 bps. Euro Area CPI inflation...
FxWirePro: AUD/USD gamma calendar combination to hedge downside risks
Dec 02, 2015 07:54 am UTC| Technicals
As you can make out from the table the implied volatility for near month at the money contracts of AUDUSD pair has still been on higher side among G20 currency segment in the long run and is perceived to be at 11.5-11.75%...
FxWirePro: Delta risk reversal re-ignites AUD/USD bearish trend to prolong
Dec 02, 2015 07:31 am UTC| Technicals
After the brief upswings to 0.7342, the OTC options market appears to be more balanced on the direction of the pair over next 1m to 1y time horizon as hedgers have been cautious on long term downtrend that has lasted since...
FxWirePro: WTI crude still weaker; a run through on hedging
Dec 01, 2015 12:05 pm UTC| Technicals
Although WTI crude has shown a little surge in its price, from last 3 days it was unable to sustain these gains, we look out for a drag up to 39.90 levels. The ongoing robust level of crude oil production is likely to...
FxWirePro: Placing Put Ratio Back Spreads in USD/JPY’s puzzling swings mitigates downside risks
Dec 01, 2015 08:48 am UTC| Technicals
We could foresee lot of speculations happening around USDJPY currency cross. Despite last weeks preliminary Q/Q GDP in U.S. posted upbeat numbers at 2.1% which is an increase from previous 1.5% and trade deficit has...
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