FXstreet.com (Barcelona) - Are we in the midst of policy vacuum? Nomura FX team thinks so. Failure to ease market concerns - other than the indirect Spanish bailout - and since the ESM is still not operating, Nomura thinks "these factors suggest we are moving from a period of broad-based euro weakness and stable risk premia to euro weakness against the dollar and also rising global risk premia" Nomura informed to its clients, suggesting "USD vol could be driven higher" the bank expands. At present Nomura sees FX vol being relatively cheap. Furthermore, "risk reversals are at relatively favourable levels to buy USD calls. Hence, we have bought vol by purchasing USD calls against EUR, GBP and CAD."
Forex Flash: Moving to period of EUR/USD weakness, rising global risk premia - Nomura
Fri, Jul 27 2012, 02:07 GMT | FXstreet.com
EUR/USD May 21 at 08:08 GMT
1.2880/81 (-0.02%)
H1.2905 L 1.2862
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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
