Soon after we hedged our position in Crude [1, 2], the black gold had been traded down to approximately 66 and now is back above 70 in pre-market electronic trading. Its resilience prompted us to consider the possibility of an imminent fluctuation in the FX markets. Also, the Yen seems preparing to head higher, which we have no exposure to at this moment in time. In addition, the yield curve has been rising all the way from the short end to the long end over the past months -- bond traders are beginning to price in the inflation expectation that we have been citing here [3, 4]. Therefore, we are prepared to remove the hedge we placed on Crude, should the market force us to. Will report here if we do.
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