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Amid highly volatile economic environment, shielding currency exposure has become too risky than before. In this series we provide an intelligent insights and analysis on actionable FX derivative strategies that serve different levels of risk appetites and returns.

FX Hedging Strategy Series

FxWirePro: Trump effects on Antipodeans - 1M forward vols priced-in highly asymmetrically with respect to the history of 1M ATM vols

Nov 10, 2016 07:43 am UTC| Research & Analysis

The narrow-dated forward vols in antipodean currencies are priced highly asymmetrically with respect to a rolling history of 1M ATM vol. For instance, the above chart explains that indicative offers on 1M1M FVAs in...

FX Hedging Strategy Series

FxWirePro: Deploy reverse put spreads to hedge EUR/JPY quantifying and capitalizing RR gap between EUR/USD, USD/JPY and EUR/JPY

Nov 10, 2016 07:33 am UTC| Research & Analysis

The excessive yen skew premium Yen calls are in high demand for all crosses as the market is behaving in a risk-off way. As we wrote here and here, the yen probably met an inflexion point after months of strength. A...

FX Hedging Strategy Series

FxWirePro: USD/JPY tumbles but recovers digesting geopolitical news in both US and Japan and but what do risk reversals imply?

Nov 09, 2016 14:36 pm UTC| Research & Analysis

The U.S. dollar tumbled over 1% to a one-month low against the other major currencies on Wednesday, as Donald Trump appeared to be winning the U.S. presidential election. Markets began pricing in owing to a Trumps...

FX Hedging Strategy Series

FxWirePro: USD/RUB goes in sideways shrugging off all available news but eyeing crude prices consolidation – DPS for optimized hedging

Nov 09, 2016 14:07 pm UTC| Commentary

The right balance between commodity dependence and external imbalances. The evolution of net commodities exports and current account balance (as % of GDP) between 2013 and 2015 (the second leg of the commodity...

FX Hedging Strategy Series

FxWirePro: Bid USD/ZAR call spreads as political turmoil still lingers in South Africa while Trump crowns as 45th President

Nov 09, 2016 12:54 pm UTC| Research & Analysis

The results of the US elections has caused turbulence in almost all asset avenues including EMFX as the Republican candidate Donald Trumpis crowningas the 45th president of the United States on Wednesday, crushing the...

FX Hedging Strategy Series

FxWirePro: Bullion OTC gets stimulated for bullish risks after Trump’s triumph – 3-way straddle versus OTM puts for hedging

Nov 09, 2016 10:17 am UTC| Research & Analysis

We forecast a moderately higher gold price during the remainder of the year with a 4Q16 price forecast of $1,350/oz as our economists expect a slow pace of Fed tightening with the next rate hike likely at the December...

FX Hedging Strategy Series

FxWirePro: Norwegian inflation keeps Norges bank dovish - USD/NOK dips likely to prolong, stay short via option and cash trades on hedging grounds

Nov 09, 2016 09:42 am UTC| Research & Analysis Insights & Views

The NOK is closely correlated to crude oil prices, and it has strengthened this year following stabilization in oil and the Norwegian economy. Norway is also running the highest inflation readings among G10...

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Economy

India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out

India and the United States have taken a significant step toward strengthening bilateral trade ties with the release of an interim trade framework that includes major tariff reductions on high-end American automobiles and...

Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality

Donald Trump has positioned himself as the Republican Partys chief voice on the cost of living during a pivotal election year, but a Reuters review of his recent speeches shows a growing disconnect between his rhetoric and...

South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom

South Africa is keen to make use of potential new European Central Bank (ECB) repo liquidity lines, according to central bank governor Lesetja Kganyago, as the country continues to navigate easing inflation and a gradual...

Russian Stocks End Mixed as MOEX Index Closes Flat Amid Commodity Strength

Russian stocks finished the latest trading session on a mixed note, with the MOEX Russia Index closing flat as gains in select blue-chip shares were offset by losses in others. At the close of trading in Moscow, the...

China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices

Chinas central bank has continued to strengthen its gold reserves, extending its buying streak to a 15th consecutive month in January, according to the latest data released by the Peoples Bank of China (PBOC). The move...

Politics

Jack Lang Resigns as Head of Arab World Institute Amid Epstein Controversy

Jack Lang, a prominent French political figure and former culture minister under President François Mitterrand, has stepped down from his role as president of the Arab World Institute in Paris following mounting...

US Pushes Ukraine-Russia Peace Talks Before Summer Amid Escalating Attacks

The United States is pressing Ukraine and Russia to reach an agreement to end the war before the start of summer, Ukrainian President Volodymyr Zelenskiy said following two days of U.S.-brokered talks held in Abu Dhabi....

Netanyahu to Meet Trump in Washington as Iran Nuclear Talks Intensify

Israeli Prime Minister Benjamin Netanyahu is expected to meet U.S. President Donald Trump in Washington on Wednesday, with Irans nuclear program and regional security topping the agenda. The meeting comes amid renewed...

Trump Backs Nexstar–Tegna Merger Amid Shifting U.S. Media Landscape

U.S. President Donald Trump has publicly endorsed a proposed merger between Nexstar Media Group and Tegna, signaling renewed political attention on the future of local television broadcasting. In a post shared Saturday on...

Japan Election 2026: Sanae Takaichi Poised for Landslide Win Despite Record Snowfall

Japanese voters headed to the polls on Sunday in a rare winter election that could deliver Prime Minister Sanae Takaichi a commanding mandate, even as record snowfall threatened to suppress turnout in parts of the country....

Science

SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates

Elon Musks SpaceX is shifting its near-term space exploration strategy, choosing to prioritize a return to the Moon before pursuing missions to Mars, according to a recent Wall Street Journal report citing sources familiar...

NASA and SpaceX Target Crew-11 Undocking From ISS Amid Medical Concern

NASA has confirmed that the agency, in coordination with SpaceX, is targeting no earlier than 5 p.m. Eastern Time (2200 GMT) on Wednesday, January 14, for the undocking of the SpaceX Crew-11 mission from the International...

Neuralink Plans High-Volume Brain Implant Production and Fully Automated Surgery by 2026

Elon Musks brain-computer interface company Neuralink is preparing for a major expansion, announcing plans to begin high-volume production of its brain implant devices and transition to a fully automated surgical procedure...

Jared Isaacman Confirmed as NASA Administrator, Becomes 15th Leader of U.S. Space Agency

The U.S. Senate has officially confirmed billionaire private astronaut Jared Isaacman as the new NASA administrator, making him the 15th leader in the agencys history. The confirmation, which took place on Wednesday, marks...

Senate Sets December 8 Vote on Trump’s NASA Nominee Jared Isaacman

The U.S. Senate Commerce Committee announced it will vote on December 8 on President Donald Trumps renewed nomination of private astronaut and tech entrepreneur Jared Isaacman to lead NASA. Isaacman, known for his...

Technology

Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge

Nvidia (NASDAQ: NVDA) CEO Jensen Huang reaffirmed his bullish stance on artificial intelligence, calling the massive capital expenditure flowing into AI infrastructure both appropriate and necessary as the industry...

Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate

Amazon.com (NASDAQ:AMZN) delivered a mixed but closely watched earnings report, beating Wall Street expectations on revenue while unveiling a massive long-term investment plan that unsettled investors. The e-commerce and...

Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch

Major PC manufacturers including HP, Dell, Acer, and Asus are reportedly exploring the option of sourcing memory chips from Chinese semiconductor companies for the first time, as a prolonged global supply crunch continues...

OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering

OpenAI is significantly accelerating its enterprise AI strategy by hiring hundreds of new employees for its technical consulting division, according to a report by The Information, citing a person familiar with the...

SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off

SoftBank Group Corp. (TYO:9984) shares tumbled sharply on Thursday, tracking a steep decline in Arm Holdings (NASDAQ:ARM) after the UK-based chip designer reported weaker-than-expected earnings for the December quarter....
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