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More on USD/JPY volatility surge - protection being sought against a BOJ tweak surprise
FX options pricing is showing a market that is growing wary that the Bank of Japan will tweak policy on Friday. Higher option prices shows the market is paying up for options that would hedge that risk. Implied volatility for JPY-related options expiring after the BoJ decision eased marginally after last week's dovish comments from the BoJ governor. But, they bounced back this week and spurred further after an FT article (link here, FT is gated) cited warnings from several big banks about the i...
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Posted: Jul 27 2023, 03:12
Author Name: forexlive
Views: 080895