FxWirePro: China trade surplus cushions kiwi dollars but mid-month IV skews signal bearish risks of NZD/USD – Use rallies to write overpriced puts in PRBS for hedging

Apr 13, 2017 07:06 am UTC| Research & Analysis Insights & Views

China reported trade surplus a USD 23.9 billion in March of 2017, compared to a USD 25.2 billion surplus a year earlier and above market expectations of a USD 10 billion surplus. Exports surged by 16.4 pct YoY, following a...

FX Hedging Strategy Series

FxWirePro: Insights on MAS’s SGD NEER implications – USD/SGD low IV yielder via debit put spreads

Apr 12, 2017 13:52 pm UTC| Central Banks Research & Analysis Insights & Views

The instrument of monetary policy in Singapore is the nominal effective exchange rate (NEER) rather than a market interest rate. This is because of the small and open nature of the economy with free capital movement. The...

FxWirePro: EUR valuations still seem slightly rich and sterling no longer cheaper but edgy in long-term fair value projections of G10 space

Apr 12, 2017 13:00 pm UTC| Research & Analysis

GBP is no longer the cheapest G10 currency and still has room to cheapen further if political risks intensify. The same is true for EUR where valuations are still near fair value despite underperformance in the past...

FxWirePro: What-if scenarios of French and Italian elections - 1w1m IVs and skewness conducive for both writers and holders of EUR/CAD PRBS

Apr 12, 2017 11:02 am UTC| Research & Analysis Insights & Views

The most focused on the political event in Euro area this year the French elections are approximately a month away. Our forecast assumes that mainstream parties prevail, which combined with a less dovish ECB should...

FxWirePro: Counting down to the French polls - Stay bearish GBP via a long 2m EUR/GBP call spread

Apr 12, 2017 10:36 am UTC| Research & Analysis Insights & Views

The most focused on political event in Euro area this year the French election is now exactly a month away. Our forecast assumes that mainstream parties prevail, which combined with a less dovish ECB should eventually...

FxWirePro: Euro options trades perspectives - RKIs and put flies for EUR/USD and EUR/CAD

Apr 12, 2017 09:32 am UTC| Research & Analysis Insights & Views

With limited room for Euro appreciation and the near certainty of a vol slump in the event of a Macron victory, long delta/short vega strategies such as EUR call flies appeal, and are well-priced in EURUSD and EURCAD....

Europe's airports and toll roads to preserve strong credit quality despite slowing traffic growth in 2017

Apr 12, 2017 07:59 am UTC| Research & Analysis Economy

European toll roads and airport operators credit quality will remain solid despite an expected slowdown in traffic growth in 2017, following a significant upswing in passenger volumes last year that will be tough to...