FX Hedging Strategy Series

FX Hedging Strategy Series

FxWirePro: SARB stays pat captivating all into account (especially noticing unemployment claims and inflation) – Use USD/ZAR DCS for hedging

Nov 25, 2016 01:16 am UTC| Central Banks Research & Analysis

The most recent South African economic data was not exactly constructive: the unemployment rate rose to over 27% in Q3 and the inflation rate also rose to 6.4% in October. That means it has eased only slightly against its...

FX Hedging Strategy Series

FxWirePro: USD banks on hiking cycle and CAD on crude consolidation - Hedge via 3-way straddles versus OTM puts on disparity between premiums and IVs

Nov 24, 2016 13:11 pm UTC| Central Banks Research & Analysis

The market is currently seeing the likelihood of three Fed rate hikes until late 2017 as standing at 50% the highest level since the FOMC meeting in March. At the time the market was still convinced that there would be a...

FX Hedging Strategy Series

FxWirePro: PBoC opts to stay pat on Yuan’s vulnerability – Hedge upside risks as USD/CNY all set to take off at psychological 7 and above

Nov 24, 2016 11:21 am UTC| Central Banks Commentary

The dollar surged to a for multi-year peaks against Chinese currency on today, bolstered by more than anticipated U.S. economic data that showed the economy on track for steady growth and reinforced expectations of...

FX Hedging Strategy Series

FxWirePro: GBP/USD option trades for neutral risk reversals, shrinking IVs and for hedging strategies for further downside risks

Nov 24, 2016 10:06 am UTC| Research & Analysis

As stated in our recent post, we are sensing the copy-cat range process of the summer range we have been looking for in the medium term perspectives. This has actually become a range within that range, with 1.2300 1.2510...

FX Hedging Strategy Series

FxWirePro: Cable interim bulls seem to be exhausted to drift in sideways, major downtrend still remains intact below 7-EMA – Double touch binaries to speculate

Nov 24, 2016 09:27 am UTC| Technicals

The bulls attempts are restrained at 7DMA, more bearish rout underway as we see no bullish substantiation from any other technical indicators. As a result, the interim bulls drift in sideways, major downtrend still...

FX Hedging Strategy Series

FxWirePro: Bidding 1m AUD/JPY IVs over 1w tenors keeps FX exposure as optimal hedging via option straps ahead of flurry of economic data

Nov 24, 2016 07:22 am UTC| Research & Analysis

The Australian economy is starting to lose momentum and Q3 GDP partials are pointing to a weak print. This makes receiving the front end tempting at current levels, but the inexorable pull of higher yields globally...

FX Hedging Strategy Series

FxWirePro: What all could USD/TRY ATM delta calls do amid Turkish political and CBRT’s intrusion?

Nov 23, 2016 13:40 pm UTC| Central Banks Research & Analysis

With the deterioration in the local Turkish political situation and a less supportive environment from higher G3 yields, the outlook for the lira is worsening, in our view. While the CBRT could conduct FX sale auctions...