Donald Trump fires FBI director and a new national nightmare takes hold
May 11, 2017 00:08 am UTC| Insights & Views Politics
Ever since Donald Trump took office amid revelations of Russian meddling in the 2016 election and his teams connections with the Kremlin, a monumental political time-bomb has been steadily ticking. But things took an...

May 10, 2017 13:29 pm UTC| Research & Analysis Insights & Views
Macro outlook: In the UK, Politics continues to dominate the headlines, with further signs that the UK and the EU are entering the Brexit negotiations some distance apart. PM May accuses the EU of interfering with...

Eurozone inflation outlook improves in ECB survey, adds to the central bank's dilemma
May 10, 2017 11:59 am UTC| Insights & Views Economy Central Banks
The recently released European Central Bank (ECB) Survey of Professional Forecasters for the second quarter of 2017 shows that inflation in the eurozone will pick up in future but remain driven by volatile food and energy...
FxWirePro: Uphold longs in Swedish Krona versus EUR and JPY via cash, append optionality against NZD
May 10, 2017 11:45 am UTC| Research & Analysis Insights & Views
SEK has been through the mangle this week and we narrowly avoided being stopped in EURSEK. The pressure on the currency stems more from positioning than a re-pricing of monetary policy indeed, fair-value for EURSEK has...

FxWirePro: Hedging perspectives of Aussie dollar on mounting bearish risk sentiments in OTC
May 10, 2017 10:34 am UTC| Research & Analysis Insights & Views
We open a short position in AUD this week, in part because it offers exposure to a more extended period of soul searching around China (these policy-induced mini cycles tend to be reasonably durable and exploitable), in...
FxWirePro: Financial de-leveraging continues in China – Perspectives of CNH hedging vehicles
May 10, 2017 09:17 am UTC| Research & Analysis Insights & Views
There is no lack of news on measures to reduce financial leverages in China. The latest is a tightening of control on collaterals. Commercial banks are asked to adopt a comprehensive framework to manage collaterals,...

FxWirePro: What constraints delta-hedging in EUR/USD and EUR/JPY, what are alternatives?
May 10, 2017 08:46 am UTC| Research & Analysis Insights & Views
A by-product of the violent de-pricing of French election risk after the first round outcome is that back-end (1Y-2Y) EURUSD and EURJPY vols have crashed to near 2014 lows (refer above chart). This event-related...