Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Urban studies: Doing research when every city is different 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Stock Futures Dip as Investors Await Key Payrolls Data 
Wall Street Analysts Weigh in on Latest NFP Data 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Canada has scheduled for the trade balance data announcements today, Canada’s merchandise trade deficit narrowed to CAD 4.25 billion in January 2019 from an upwardly revised all-time high CAD 4.82 billion in the previous month and compared with market expectations of a CAD 3.5 billion shortfalls. It was the second largest trade gap on record. Exports rose 2.9 percent, the first increase since July, mainly on the strength of higher crude oil export prices and imports increased at a softer 1.5 percent, led by aircraft purchases.
CAD is quietly consolidating at the midpoint of the recent range, and remain in the short-term bullish. While crude oil has responded positively to the developments, with WTI inching below $63.76 levels. CADJPY bulls attempt to regain from the last two weeks, though the major downtrend remains intact, the pair has been struggling for momentum at 83.679 levels.
OTC Updates and Options Trading Strategy (CADJPY):
Positively skewed CADJPY IVs of 3m tenors have still been signaling bearish risks, the hedgers’ interests to bids for OTM put strikes up to 81.500 levels indicating downside risks in the medium terms. Please observe above technical chart for minor upswings in the short run that are to be capitalized for interim longs, while upholding short hedge as the major downtrend remains intact. Accordingly, we advocated options strips strategy to address both short-term upswings and the major downtrend.
We’ve been firm to hold on to this strategy on both trading as well as hedging grounds, unlike spreads, combinations allow adding both calls and puts at a time in our strategy.
Buy 2 lots of 3m at the money delta put option and simultaneously, buy at the money delta call options of similar tenors. It involves buying a number of ATM call and double the number of puts. Please be noted that the option strip is more of the customized version of options combination and more bearish version of the common straddle.
Huge profits achievable with this strategy when the underlying currency exchange rate makes a strong move on either downwards or upwards at expiration, but greater gains to be made with a downward motion. Hence, any hedger or trader who believes the underlying currency is more likely to spike upwards in short run but major downtrend can go for this strategy. Cost of hedging would be Net Premium Paid + brokerage/commission paid. Courtesy: Sentrix
Currency Strength Index: FxWirePro's hourly CAD spot index is flashing at -109 levels (which is highly bearish), hourly JPY spot index was at -132 (highly bearish) while articulating at (07:37 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
