FxWirePro: Three major driving forces for BoE’s status quo with a hawkish twist – Gaining traction of hedging bids for bearish risks in GBP against EUR

Mar 28, 2017 12:33 pm UTC| Central Banks Research & Analysis Insights & Views

The summary of the BoE meeting in March contained three main triggers for changes to the BoEs current monetary policy stance. 1. CPI inflation. 2. Wage growth. 3. Private consumption. Higher CPI inflation and/or...

FX Hedging Strategy Series

FxWirePro: WTI and Brent demand/supply forecasts send conducive signals for both speculators and investors – Diagonal option straps to stiff hedge

Mar 28, 2017 11:35 am UTC| Research & Analysis Insights & Views

The supply estimates of now incorporated in our forecasts for the coming 18 months drive a further structural loosening in projected market balances. Consequently, we lower price forecasts for 2017 and 2018 to...

FX Hedging Strategy Series

FxWirePro: Prefer AUD/CAD 6m put switch as low-cost risk hedge signifies competitive edge over USD/CAD

Mar 28, 2017 07:49 am UTC| Research & Analysis Insights & Views

Data events: BoC Gov Poloz speech on 28th March. Canadian GDP on 31st March. Aussie Retail Sales on 2nd April. Aussie Trade balance on 3rd April. RBAs Monetary Policy on 4th April. Canadian Trade balance on...

Moody's: Kazakhstan more resilient than Azerbaijan in adjustment to lower oil prices

Mar 27, 2017 07:44 am UTC| Research & Analysis

Moodys Investors Service (Moodys) says that policymakers in Kazakhstan (Baa3 negative) and Azerbaijan (Ba1 negative) have faced similar challenges from the decline in oil prices from their mid-2014 highs, including a sharp...

FxWirePro: GBP/AUD vega longs and theta shorts in 3-way straddles versus OTM call as hedging vehicle ahead of RBA’s cash rates

Mar 24, 2017 12:54 pm UTC| Research & Analysis Insights & Views Central Banks

The central bank of Australia is scheduled to be announcing its monetary policy on April 04th which is likely to stay pat, even if the RBA does not deliver easings in 2H17, three hikes from the Fed will still leave minimal...

FxWirePro: Bearish GBP basket via shorts in cable spot trades and long 2m EUR/GBP call spread

Mar 24, 2017 10:01 am UTC| Central Banks Research & Analysis Insights & Views

This write up emphasizes on the prevailing shorts in GBP and those who squared off lets reopen a bearish basket (stay short cable in cash, buy a 2-m EURGBP call spread), we bought cable two weeks ago as this was the most...

FxWirePro: Option strips to hedge AUD/JPY as Aussie seems vulnerable global commodity supply surge cools off

Mar 24, 2017 07:21 am UTC| Research & Analysis Insights & Views

TheAustralian federal governments mid-year fiscal updateis expected to show a deteriorating deficit as broad economic weakness offsets commodity price gains. Markets will be watching for any rating agency reactions. The...