FX Hedging

Following the ECB’s surprisingly dovish message last week, signalling no hikes in 2019, we see significantly less upside for EUR/USD this year. We recommend hedging USD-denominated income via risk reversals: this allows one to profit from some dollar strength near term (as per our call), yet still secures a worst-case rate without locking in the […]

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AUD Election Rolling

Election uncertainty a factor dampening the AUD The approaching election in Australia is a negative for the AUD.  Perhaps the budget is a reminder that the election may come sooner than expected. The election is negative because it generates policy uncertainty and reminds the market how unstable government in Australia has been for the last […]

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