FX Hedging Strategy Series

FxWirePro: Delta hedge on AUD/USD proves right in current trend as RBA minutes to prove uneventful but FOMC guidance in focus

Sep 20, 2016 13:31 pm UTC| Central Banks Research & Analysis

The RBAs unchanged policy actions in the cash rate (on hold at 1.5%) two weeks ago and delivered a statement broadly which was in line with the expectations. Thus, we doubt the minutes from Septembers Board meeting will...

RBA’s Steve to step down and Lowe to take charge as monetary policy minutes less likely to stimulate FX space

Sep 20, 2016 13:05 pm UTC| Central Banks Insights & Views

With the exception of a few kind words directed at Glenn Stevens, for whom the Reserve Bank of Australias (RBA) last meeting was his last as central bank governor, the meeting minutes contained little of interest....

FX Hedging Strategy Series

FxWirePro: Speculators to snap profits in Yen owing to BoJ this week but stay hedged in EM baskets

Sep 20, 2016 12:22 pm UTC| Central Banks Research & Analysis

FX vols are transitioning from liquidity induced calm to fitful disorder created by recurring bond sell-offs. Upticks in rate sensitive long-expiry options and greater risk premium for carry FX/ EM vols are two potential...

FxWirePro: EUR/USD Iron Condors in jerking IVs as FOMC tiptoes funds rate hike

Sep 20, 2016 11:24 am UTC| Central Banks Research & Analysis Insights & Views

Background: FOMC tiptoes toward December, Fed officials have done little to persuade the markets that a hike is imminent and we believe the FOMC has little appetite to deliver a surprise. As a result, we think the Fed is...

Norges Bank likely to leave key interest rate unchanged

Sep 20, 2016 10:49 am UTC| Commentary Central Banks

The Norwegian central bank, Norges Bank, is mostly likely to leave its key rate unchanged at 0.5 percent during its meeting on Thursday, according to Nordea Bank. In its latest MPR, which was released in June, the central...

FX Hedging Strategy Series

FxWirePro: Would you want to bear BoJ’s policy uncertainties and BoC minutes - Hedge CAD/JPY risks via 3 way straddle vs call on HY IVs

Sep 20, 2016 08:26 am UTC| Central Banks Research & Analysis

Although the Bank of Canada sees an overheated housing market and rapidly rising prices as significant financial sector vulnerabilities, Governor Poloz has said that the policy rate is too blunt a tool to try to mitigate...

ECB speeds up purchase of corporate bonds

Sep 20, 2016 07:37 am UTC| Commentary Economy Central Banks

To the astonishment of most of the analysts, the European Central Bank (ECB) has ramped up its purchase of corporate bonds under its quantitative easing program. Since July, European Central Bank (ECB) has on an average...