FxWirePro: Capitalize on EUR/JPY shrinking IVs and 1m skewness and participate in dubious bullish exposure via RKOs

Sep 25, 2017 08:57 am UTC| Research & Analysis Insights & Views

Please be noted that the implied vols of EURJPY crosses have been shrinking lower from the current 13.51% to 9.35% for 1w and 8.86% for 2w tenors in spite of the speeches of ECB and BoJ officials. Positively skewed EUR...

FxWirePro: Smart hedging for softer dollar shorts post Fed speeches

Sep 25, 2017 06:50 am UTC| Research & Analysis Insights & Views Central Banks

After being gripped slightly by geopolitically-driven risk aversion last Friday, expect markets to be guided by central bank rhetoric this week despite the plethora of geopolitical/political headlines over the weekend. At...

FxWirePro: TWD under-performance links with China - Hedging carry trade risks

Sep 22, 2017 12:58 pm UTC| Research & Analysis

The TWD has had a good run so far this year, and with the largest current account surplus in emerging markets, it will require a negative exogenous event China growth or a wobble in global sentiment that drags down...

FxWirePro: USD/TWD call KO spreads to capitalize on cheap skews and to participate in minor uptrend and major downtrend

Sep 22, 2017 11:48 am UTC| Research & Analysis Insights & Views

USD appreciation following the Fed meeting was mainly due to the fact that the Fed did not change its own forecast, the so called dots (or did so only marginally). Every FOMC member gives their view of where the key rate...

FxWirePro: Choice between USD/CHF FVAs or Straddles as SNB deputy’s remarks steer Swiss franc money market

Sep 22, 2017 11:08 am UTC| Central Banks Research & Analysis Insights & Views

The USD rebound appears to be stalling despite the upbeat US CPI and the rate expectations have remained largely unchanged. A rate hike in December is still only priced in at only two thirds to give US yields an additional...

FxWirePro: Can dollar strength against G3 counterparts sustain after hawkish FOMC? Seems unlikely

Sep 22, 2017 07:38 am UTC| Research & Analysis Insights & Views Central Banks

The recent USD strength following the Fed meeting did not last very long. Since yesterday morning EURUSD has already been enjoying support again and is trading around 1.1950. However, the rate expectations have remained...

FxWirePro: Prudent to cover shorts in Kiwis dollar ahead of parliamentary polls, long calls on AUD/NZD option straps serve the purpose – Reshuffle straps to strips

Sep 22, 2017 06:54 am UTC| Research & Analysis Insights & Views

The generalparliamentary electionis held on Sat 23 September. Polling ends at 7 pm NZT, and the results of most votes will be available that evening. Polls have indicated a close race. NZ goes into the polls and having...