FX Hedging Strategy Series

FX Hedging Strategy Series

FxWirePro: Aussie seems vulnerable against majors after series of negative news flow, China prints mixed bag of price data

Jun 09, 2016 09:25 am UTC| Commentary

There was some disappointment in markets this week in Australia as the RBA Minutes did not signal a guarantee of a follow-up rate cut. Rate cut pricing has been reduced over the last month by around 15bp and now has the...

FX Hedging Strategy Series

FxWirePro: A glimpse on competitive advantage of ‘Theta’ on shorts in AUD/NZD ‘Credit Call Spreads’

Jun 09, 2016 07:26 am UTC| Research & Analysis

Well, in our previous write-up weve advocated AUDNZD credit call spread for both hedgers and speculators taking into account. The strategy reads this way, short ITM calls and OTM long calls with 2w and 1m expiries...

FX Hedging Strategy Series

FxWirePro: Is it Fed or BoE? - Hedge GBP and USD exposures on tail risks amid deferral by central banks

Jun 08, 2016 14:22 pm UTC| Research & Analysis

We reckon that the upcoming weeks have been the stimulants of bears in pound sterling and for the US dollar. The central banks in both continents are so cautious on tail risks attached to their economy because of which...

FX Hedging Strategy Series

FxWirePro: Append Gold’s previous 3-way straddle with put writing on neutral 1w risk reversals and lacklustre IVs

Jun 08, 2016 12:27 pm UTC| Research & Analysis

Gold futures for August delivery on the Comex division of the NYME rallied to a daily peak of $1,253.50 a troy ounce, the most since last 3 weeks. Safe-haven demand is strengthened again Feds stance on monetary policy,...

FX Hedging Strategy Series

FxWirePro: Japanese current a/c surplus dampens Yen’s prospects, NZD gains as RBNZ to stand pat - hedging for both payables and receivables

Jun 08, 2016 07:22 am UTC| Commentary

Japan posted a current account surplus of 1,878.5 JPY billion in April of 2016, down from 2,980.4 JPY billion in March. The figure was below market forecasts of 2,318.9 JPY billion, marking the 22nd straight month of...

FX Hedging Strategy Series

FxWirePro: Bid NZD/JPY 1w IVs ahead of RBNZ by using 3-way straddles vs put for short term speculation on HY vols

Jun 08, 2016 06:19 am UTC| Research & Analysis

Since we could foresee risk bias on both sides in NZDJPY as the long term downtrend seems intact and short term trend is just puzzling, the pair has recently started to drift higher and targets a break above 75.296 in near...

FX Hedging Strategy Series

FxWirePro: GBP/CHF vega instruments in ‘debit put spread’ on HY vols likely to handsome yields

Jun 07, 2016 14:21 pm UTC| Commentary

As there is SNBs monetary policy is lined up for next week, where Libor rate is likely to remain unchanged again at -0.75%, CHF began losing its gaining traction against sterling. On the flip side, UK PMIs could not do...