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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.
EMERGING MARKETS
- Markets remain on watch for any signals from the Fed today that a pivot-point in policy could come as soon as December. Suitably, USD/EM overnight implied volatility has surged higher across the board, with the vol premium added over yesterday's close an indication of the market's view of a currency's sensitivity to the Fed decision today.
- USD/ZAR's overnight implied vol has added close to 11 points off the Tuesday close, the largest ppt increase among the currencies surveyed, although the change in TWD implied vol is the largest in percentage terms.
- Overnight USD/ZAR straddle pricing breaks even on a circa 1.2% move in the pair, assuming an 18.111 spot price.
Figure 1: Overnight Implied Vols surge ahead of the Fed decision
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.
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