Vols slide as FX rates contained Friday -.....>

FOREX: Vols slide as FX rates contained Friday

- Most major pairs respected the recent ranges Friday, with global equity

markets failing to find much direction into the Friday close. This kept downward

pressure on front-end implied volatility, leaving the impression that traders

expect little from central bank meetings due next week.

- Further reports of BoJ action at next week's meeting failed to keep a lid on

the JPY Friday, which crept to the top of the G10 leaderboard as stocks didn't

manage to top the Thursday session highs. Despite the firmer JPY, USD/JPY held

well above the week's lows, but downside pressure remains high markets look to

form a 'death cross' in DMA space, with the 50-dma edging below the 200-dma for

the first time since early 2019. NOK was at the other end of the scale as the

oil bounce faded, keeping WTI well below $20.

- Earnings take centre stage in the coming week, with 49% of the S&P500 by index

weight due to report, with technology firms making up the bulk of the activity.

Central banks are also highly active, with decisions from the BoJ, Fed and

Riksbank also on the docket.