It is a well known and flexible strategy to sell options in currency pairs to collect the premium and therefore create yield. The strong decline in volatility and interest rates over recent years though made it less and less attractive. On the other hand, levels of certain currencies/currency pairs and their volatility and interest rate levels currently do signal very appealing opportunities. The beauty of […]
Markets tend to move in cycles and there is an unlimited amount of more or less successful strategies in the markets trying to cope with these cycles. Currently trend followers like us are having hard times as there is no or no significant trend in place. It is as hard for the manager as for the investor because you question your models more than once […]
Turkish Lira, Mexican Peso, South African Rand and Russian Rubel have one thing in common: They pay much more yield than the major currency pairs. Now, there is obviously a reason for that. these currencies have not exactly performed well over the recent history and the political situation in the respective countries is fragile. Nevertheless, carries add up and whilst there is a significant risk […]
The price fluctuation in the major currency pairs seems to be non-existent which makes the life of trend followers extremely difficult. The bandwidth keeps on holding and holding ….. until it suddenly breaks. Geopolitical topics, Brexit, trade wars and low interest rate environment seem to have only very short-term and limited impacts and are obviously not triggering any significant moves. In times like that and […]
Der Brexit ist weiterhin eine unbekannte Grösse, spezifisch im Hinblick auf die GBP-Crosses. Wir gehen davon aus, dass es weiterhin erratische Kursausschläge im Sterling gibt. Diese Situation erwarten wir unverändert bis die endgültige Brexit-Lösung juristisch tragfähig vorliegt.