FxWirePro: Hedge ZAR in South African inflationary environment via option spreads

Mar 23, 2017 12:36 pm UTC| Central Banks Insights & Views

South African inflation data was due for publication yesterday. Consumer prices in South Africa rose 6.3 pct YoY in February of 2017, following a 6.6 pct gain in January, matching market expectations. It was the lowest...

Singapore's consumer price inflation accelerates as expected in Feb, reinforces Monetary Authority of Singapore’s neutral bias

Mar 23, 2017 11:04 am UTC| Insights & Views Economy Central Banks

Data released by the Ministry of Trade and Industry (MTI) showed Thursday that Singapores headline inflation has accelerated slightly in February, in line with expectations. Singapores headline inflation increased 0.7...

FxWirePro: Macro level hedging radar amid fading interest rates and political tail risks

Mar 23, 2017 11:00 am UTC| Central Banks Insights & Views

The USD index has set a new low for the year having dropped 1.25% on the Feds caution. Not only that, the dollar has now retraced over 60% of the entire Trump rally, which goes a long way to validating a key assumption in...

FxWirePro: EURGBP call spread to complement handful of proxy EUR recovery trades

Mar 23, 2017 10:54 am UTC| Central Banks Insights & Views

The portfolio was tactically long USD into the FOMC but only where positioning and valuations were most favorable (CAD and GBP). This was partially hedged through a USDCHF put. The delivery of only a dovish hike counts...

FxWirePro: Not just “buy lows and sell highs game”, it is pursuit in front end vols

Mar 23, 2017 10:05 am UTC| Research & Analysis Insights & Views

The price action in front-end vols over the past two days would be characterized by our Technical Analysis colleagues as a break alert. In hindsight, this could have been predicted given the importance placed on this week...

FxWirePro: Idiosyncratic drivers engulf most EMEA EM currency space

Mar 23, 2017 07:33 am UTC| Central Banks Insights & Views

We think the idiosyncratic drivers for both ZAR (political uncertainty ahead of ANC leadership contest in December) and RUB (central banks response to persistent currency strength) are likely to remain in the background...

FxWirePro: UST yields plunge, DXY dips and momentary gains for Aussie dollar - Relative value trades for AUD crosses

Mar 23, 2017 07:11 am UTC| Research & Analysis Insights & Views

The US dollar and US interest rates probed lower. US 10yr treasury yields fell from 2.42% to 2.37% - a three-week low - while 2yr yields fell from 1.26% to 1.24%. Fed fund futures yields were slightly lower, Pricing...