FX Hedging Strategy Series

FX Hedging Strategy Series

FxWirePro: Ideal time to load up weights in EUR/USD vols - 1m-3m IVs encompass event risks

May 19, 2016 11:34 am UTC| Research & Analysis

EUR/USD volatility is trading close to its lowest level since the start of 2015, current ATM IVs are at 9.9%, likely to reduce to 7.38% in 1W expiries. But, implied volatility is probably at the floor of a persistent...

FX Hedging Strategy Series

FxWirePro: FIIs reduce EM currency buying sentiments as FOMC's action in June most likely - Stay short in EM derivatives baskets

May 19, 2016 10:19 am UTC| Commentary

The steady weakness in EM currencies that started from April has now accelerated in recent days, attaining more traction following the unforeseen revelation in the FOMC minutes that a June hike is most likely. However,...

FX Hedging Strategy Series

FxWirePro: CAD/JPY 3-way straddles versus call serves best hedging motives as steep dip in 1W IVs

May 19, 2016 09:04 am UTC| Commentary

The supply disruptions inflicting the oil market continue to ratchet up. Canadian output looks likely to be impacted much longer than expected by ongoing wildfires. Manufacturing sales in Canada was worse than anticipated...

FX Hedging Strategy Series

FxWirePro: CAD/JPY whipsaws now turning into bear swings as back-to-back

May 19, 2016 07:31 am UTC| Technicals

Upswings could not manage to hold resistance at 84.578, and then tested one more resistance at 21DMA to drop below. As a result, weve seen back-to-back long legged dojis at 84.532 and 84.535 levels respectively. For...

FX Hedging Strategy Series

FxWirePro: USD/JPY delta risk reversal flashes positive numbers - Credit Put Spread for hedging major trend

May 19, 2016 06:46 am UTC| Research & Analysis

The front end in the US has finally started to move. After more hawkish minutes, a stronger US inflation print, and a raft of Fed speakers warning of the possibility of up to two hikes this year, June and July are becoming...

FX Hedging Strategy Series

FxWirePro: Reduced CPI, political speculation in SA, Hedge USD/ZAR further upside risks via diagonal spreads ahead of hawkish SARB

May 18, 2016 12:57 pm UTC| Commentary

Risks - Positioning, a hawkish SARB, exit speculations of President Zuma The biggest risk is a benign period for risk sentiment, crowded one-sided positioning amid thin liquidity may sway USDZAR aggressively lower (that...

FX Hedging Strategy Series

FxWirePro: Stern strength in crude, cyclical asymmetric reactions bid longs in MXN and RUB – hedging perspectives

May 18, 2016 12:53 pm UTC| Commentary

Despite the strong dynamics in Brent crude, staggering close to the USD50/bbl mark, upside risks for DXY and the asymmetric reaction to a re-pricing of Fed hikes could weigh on the ongoing recovery. In that scenario,...