May 05, 2017 10:20 am UTC| Central Banks Research & Analysis Insights & Views
Following the CBRTs decision to hike the Late Liquidity Window (LLW) by 50bp to 12.25%, we would like to initiate longs in TRYZAR (entry: 3.6950; target: 3.90) and uphold shorts in USDTRY. The central bank decision was in...
FxWirePro: Ideal time for tactical hedging USD/JPY via knockout puts
May 05, 2017 10:02 am UTC| Research & Analysis Insights & Views
The FOMC is looking through softer data and is on track for a June rate hike, but we dont think that suffices to drive the dollars robustness in the months to come unless the market reconsiders the longer-term rate...
FxWirePro: Bid 1m2m NZD/JPY IVs - naked puts for aggressive bears and DPS for risk averse hedgers
May 05, 2017 07:17 am UTC| Research & Analysis Insights & Views
OTC Outlook ATM IVs of this pair is trading at 9.95% and 10.11% for 1 and 2m tenors respectively. While 1m ATM puts are trading just at 12.31% more than NPV. Please also be noted that the options with a higher IV...
May 05, 2017 06:59 am UTC| Research & Analysis Insights & Views
In New Zealand, global dairy auction numbers have produced upbeat numbers, 3.6% versus previous 3.1%, while unemployment claims have reduced from the previous 5.2 to the current 4.9% against the forecasts at 5.1%....
FxWirePro: EUR-USD-JPY correlation triangle appending optionality on soothed euro vols
May 04, 2017 13:16 pm UTC| Research & Analysis Insights & Views
The well anticipated French election outcome on April 24th saw the massive shrink in FX vols meaningfully below 1-day forward levels from last weeks close. We remain comfortable fading political tail risks in Euro...
May 04, 2017 13:02 pm UTC| Research & Analysis Insights & Views
Lets have a glance through the implied volatilities of EURCHF ATM contracts from the above nutshell, IVs of this underlying pair of all expiries have been the least among G10 currency segment. These lower volatile...
FxWirePro: What do EUR risk reversals and delta hedges offer?
May 04, 2017 10:18 am UTC| Research & Analysis Insights & Views
EUR-cross-risk-reversals have understandably re-priced sharply in the direction of EUR calls, especially against G10 commodity currencies that were among the worst performers on the week. We struggle to see severe...
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