FXstreet.com (San Francisco) - According to Chris Walker at UBS, the bank has closed its EUR/SEK trade for a 0.25% loss after its lower barrier of 8.73 was hit during the July 2nd trading session:
“While our structural view of selling SEK implied volatility was correct, we skewed our structure slightly too aggressively to the upside, and the cross has continued to push lower since we entered the trade,” notes Mr. Walker. “We like short SEK-vol trades but would aim to position for some modest downside, given the breakdown in correlation between EUR/SEK and risk assets (a theme which we have been highlighting in recent weeks).”
“While our structural view of selling SEK implied volatility was correct, we skewed our structure slightly too aggressively to the upside, and the cross has continued to push lower since we entered the trade,” notes Mr. Walker. “We like short SEK-vol trades but would aim to position for some modest downside, given the breakdown in correlation between EUR/SEK and risk assets (a theme which we have been highlighting in recent weeks).”
