MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JPY Implied Vols Surge Pre-BoJ

FOREX
  • Markets have run JPY implied vols considerably higher Tuesday as traders pre-position for the BoJ meeting early Wednesday in Asia-Pac hours. Overnight vols began to capture the BoJ decision today, and have rallied from ~18 points yesterday to north of 50 vol points this morning - the highest level since July 2016.
  • The market gyrations mean markets would have to see an approx 275 pip move in either direction to cover the premium paid on an ATM straddle, a sure sign that markets are anticipating acute volatility in the wake of the decision.
  • JPY trade slightly lower through the NY crossover, putting USD/JPY just north of the Y129.00 level, but still well within range of the recent lows at 127.23. CHF trades firmest across G10, while USD makes furtive gains amid lower equity markets. Earnings season resumes today, with Goldman Sachs and Morgan Stanley the highlights Tuesday.
  • Canadian CPI is the data highlight Tuesday, with markets expecting inflation to slow to 6.4% on a Y/Y basis. Focus should also be paid to the speaker slate, as Fed's Williams appears at an event at the New York Fed, although it remains to be seen whether he'll comment on the economy.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities

To read the full story

Close

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.