Video Blog

In this video blog Vice President of Business Development and FX expert Udi Sela provides a post Brexit assessment of the FX markets and related derivative trading strategies. He covers:

• USD/GBP - price adjustments and interesting moves.
• Emerging market currencies update.
• Derivative strategies:
  •      CVA pain: Cross-gamma effect as CDS spread opens driving yields down.
  •      Hedging CVA exposure - exploring out-of-the-money options.
• Volatility - less volumes, means a more volatile market.
• US interest rate hike - unlikely. This is being priced in, what does it mean?
• Safe havens: Swiss Franc, Japanese Yen. Yen strengthens against dollar - hedging to the down side of USD/JPY, higher negative risk reversal, higher implied volatility.