FX Hedging Strategy Series

FxWirePro: Deploy butterfly put spreads for GBP/NZD on range bounded trend and tepid IVs but ITM and OTM longs as Brexit risk looms

Dec 20, 2016 09:37 am UTC| Research & Analysis

From last 6 weeks, GBPNZD remains stuck in a 1.80 1.7380 range. We still foresee the major downtrend likely to resume and evidence further slumps ahead as the approach of the March 2017 Brexit deadline, Supreme Court...

FxWirePro: Cross-asset volatility opportunity between USD/JPY and Nikkei appears rosier after BoJ’s status quo – Uphold vol swaps

Dec 20, 2016 07:38 am UTC| Central Banks Research & Analysis Insights & Views

The BoJ maintains status quo in its monetary policy, focusing to soothing 10Y Treasury bond yield,the benchmark for long-term borrowing costs, at around zero pct and keep the overnight interest rate around -0.1%. and asset...

FX Hedging Strategy Series

FxWirePro: 1Y EUR vol remains core vega longs amid murky ECB decision on soft taper

Dec 20, 2016 07:30 am UTC| Central Banks Research & Analysis

A reminder of ECBs primary objective highlights why, with credit demand and growth so low, ECB has extended its QE. Core inflation, despite the rebounding of headline CPI, is stagnating under 1%, rather than pushing...

FX Hedging Strategy Series

FxWirePro: EUR/JPY 1m3m risk reversals and IV skews make ideal hedging proportion – Calendar put spreads to match OTC signals

Dec 20, 2016 06:40 am UTC| Central Banks Research & Analysis

The BoJ maintains status quo in its monetary policy, it seems that the central bank is focused soothing 10Y Treasury bond yield,the benchmark for long-term borrowing costs, at around zero pct and keep the overnight...

FX Hedging Strategy Series

FxWirePro: Further ECB QE in 2017? Euro seems vulnerable - Stay hedged in EUR/NZD via DPS as Eurozone struggles for inflation

Dec 19, 2016 12:41 pm UTC| Research & Analysis

Today, EURNZD breaks above 1.5015 levels (i.e.7-DMA) expanding range it has resided in for the past few months but we reckon these upswings would unlikely to sustain the move, leaving it in a neutral state for the week...

FX Hedging Strategy Series

FxWirePro: Driving forces of reloading longs in short term BRL risk - Short USD/BRL gamma via calendar spreads

Dec 19, 2016 12:33 pm UTC| Research & Analysis

The economic outlooks for Brazil and Argentina are significantly better for 2017, but political developments will likely remain fluid. For now, we reload longs in BRL risk driven by following factors. The BRL slipped...

FX Hedging Strategy Series

FxWirepro: Turkish lira still vulnerable on political stress and FED’s outlook - USD/TRY 1m IVs high yielder in debit call spreads

Dec 19, 2016 11:51 am UTC| Central Banks Research & Analysis

We remain bearish the lira; the negative feedback loop between macro policy credibility, political concerns, and investor sentiment is likely to drive the currency weaker. The FX outlook remains unambiguously negative,...