FxWirePro: A run through on buying 2M25D risk-reversals against shorting 9M35D USD puts/CNH calls
May 09, 2017 10:20 am UTC| Research & Analysis Insights & Views
Hedging back-end USDCNH option shorts with front-end risk-reversals (equal USD notionals on all legs) does not detract from short vol returns while reducing drawdowns by 30%-40% Cum. P/Ls (bp USD) from i) selling 9M 35D...
May 09, 2017 10:13 am UTC| Research & Analysis Insights & Views
Brexit caused two Sterling debacles, first in June with the vote and then after the summer when PM May suggested a hard exit. In spite of GBPJPY downtrend, election clears the way for a longer and smoother Brexit...
FxWirePro: More RORO than Euro-up on perplexed macro plot, OTC FX to substantiate
May 09, 2017 07:33 am UTC| Research & Analysis Insights & Views
Macrons victory has been greeted by markets with a big yawn, which in hindsight should not be too surprising given that it was anticipated. The euro had rallied last week in expectation of a Macron presidency. Perhaps...
Government spending explained in 10 charts; from Howard to Turnbull
May 09, 2017 03:51 am UTC| Insights & Views Politics Economy
Successive Australian governments are usually judged on how they balance the budget and spend taxpayers dollars. The stereotypes are that Liberal governments keep a tight hold on the purse strings, while Labor governments...
May 08, 2017 12:36 pm UTC| Research & Analysis Insights & Views
The Chinese PMIs indicate easing Trend in Trade: Chinas NBS manufacturing PMI eased in April, declining to 51.2 from 51.8 in March, which was the highest reading since April 2012. Easing was broad-based across the major...
FxWirePro: VXY vols print fresh Fed-cycle lows after French polls
May 08, 2017 12:23 pm UTC| Research & Analysis Insights & Views
VXY printed fresh Fed-cycle lows this past week and is screening 1 vol cheap vis-à-vis macro correlations. The undershoot is not yet at historical extremes but bears close watching in a seasonally volatile...
China’s export growth momentum likely to soften in Q2, outlook to remain stable through 2017
May 08, 2017 12:11 pm UTC| Economy Insights & Views
Chinas exports and imports data surprised negatively in April, suggesting that Chinas export growth momentum is likely to soften in Q2. Data released earlier on Monday that Chinas exports in April rose 8 percent...
Johannesburg in a time of darkness: Ivan Vladislavić’s new memoir reminds us of the city’s fragility
Economist Chris Richardson on an ‘ugly’ inflation result and the coming budget
Biden administration tells employers to stop shackling workers with ‘noncompete agreements’
IceCube researchers detect a rare type of energetic neutrino sent from powerful astronomical objects