FX Options Update: April 25, 2019
Summary: Saxo Bank's latest report on the FX Options space is now live, with a look at USD vols as the greenback breaks higher against a broad range of currencies.
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FX Breakout Monitor: The breakout picture for FOMC reaction
The USD continues to press stronger across the board ahead of the FOMC meeting, which looks a pivotal risk event for the ability of the greenback to find further momentum here. Elsewhere, we are noting that the coronavirus outbreak is pressuring currencies like the Aussie and select EM currencies that are heavily exposed to Chinese demand for their commodities exports.
FX Update: Dissonance across markets ahead of FOMC
Markets are trying to stabilize and recover from coronavirus fears, with major equity markets in a buoyant mood once again, while commodities markets and some currencies have yet to show much of a sigh of relief. Meanwhile, we have an FOMC meeting dead ahead, with the USD perched on the edge of breaking stronger and the focus on how the Fed will treat its balance sheet growth from here.
How to trade the Fed opening the door for a March rate cut
The coronavirus outbreak and implications for global growth could see the Fed turn far more cautious on the outlook for growth and especially inflation at the January meeting than the market currently expects. In this post we look at how to trade the huge possible moves in forward expectations for the Fed funds rate in coming months if the Fed takes the opportunity to guide expectations for a March rate cut.
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