FX Hedging Strategy Series

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,...

FX Hedging Strategy Series

FxWirePro: USD/TRY shooting star renders fresh buying opportunities; robust bull trend may go sideways but not reversals – Buy mid-month futures

Dec 19, 2016 11:20 am UTC| Technicals

Although the bullish momentum is reduced but upswings consistently spiking higher above DMAs, Bulls attempting to spike higher despite shooting star formations, the Turkish lira weakened sharply in the recent times, with...

FX Hedging Strategy Series

FxWirePro: Trump’s potential fiscal policy and FED’s monetary policy to keep DXY on upper hand against EMFX in Q1’2017 – Outrights trades to rescue

Dec 19, 2016 09:51 am UTC| Research & Analysis Insights & Views

Ever since the Trumps US presidential election victory in November, the DXY has risen over 3%, major backed by higher front-end core yields as markets have repriced a reflationary outlook from expansionary US fiscal...