Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OPTIONS
- The very front-end of the implied vol market is well bid ahead of the US CPI and PPI releases this week, as markets anticipate a greater chance of volatility following the data releases.
- The vol premium added this week is not uniform across currencies, however, with overnight vols flagging heightened risk across SEK and JPY in G10, and among MXN and ZAR across emerging market FX.
- JPY vols have been propped this week by the outsized move lower in USD/JPY spot prices, while SEK may also be seeing some support ahead of the June inflation release for Sweden set for Friday.
Figure 1: CPI vol premium most notable for SEK, JPY, MXN and ZAR
- The run higher in implied vol has widened break-evens on an overnight USD/JPY straddle to 95-100pips, close to double the 50 pip break-even pricing at the beginning of the week.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok