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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.
OPTIONS
- Front-end USD vols notably bid ahead of the central bank deluge over the next 36 hours - with Scandi currencies, CZK and MXN the most exposed from an options perspective.
- Overnight USD vols have been uniformly marked higher, pushing the break-even on an O/N EUR/USD straddle to ~65 pips, doubling from the beginning of the week and matching the vol premium posted at the September ECB decision and the last 25bps hike of the cycle.
- With the closely-run Norges Bank decision also in contention this week, NOK vols have run higher, hitting the highest levels since August as the contract captures both the Fed decision this evening, as well as the Thursday Norges Bank. USD/NOK has added a ~8 point vol premium since the beginning of the week, among the highest in G10.
- Across emerging markets, the front-end of the vol curve is similarly bid, however CZK and MXN look the most isolated, adding 7.2 points for CZK (buoyed by dovish Prochazka) and 7.5 points for MXN ahead of the Banxico later this week.
- See graphic below:
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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