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FX options wrap - Risks glare amid the FX status-quo

BUZZ-FX options wrap - Risks glare amid the FX status-quo June 13 (Reuters) - FX was left mostly range-bound after Wednesday's bouts of post-U.S. CPI and Fed- driven volatility, weighing back on implied volatility as a consequence of a return to the prior FX status quo . However, there are some impending events where the FX volatility risk premium is still elevated as demonstrated by particular option expiry dates and their implied volatilities.
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Here's the BoJ risk to according to FX options

BUZZ-COMMENT-Here's the BoJ risk to JPY - according to FX options June 13 (Reuters) - The FX volatility upon which FX options thrive is gauged with implied volatility when setting the premium, making implied volatility a risk bellwether for impending events. Overnight/next day expiry is the shortest duration option and any changes to its implied volatility and subsequent premiums therefore offer a insight to the perceived FX volatility risk attached to major events covered by its expiry, such as
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FX options wrap - Weak USD volatility pressure tamed by euro risk

BUZZ-FX options wrap - Weak USD volatility pressure tamed by euro risk Below-forecast U.S. CPI data reignited U.S. rate cut bets and weakened the USD as it allows the Fed more room to lean dovish on Wednesday. Overnight expiry implied volatility has been slow to ease from higher levels and highlights the potential for more FX volatility around the time of the Fed announcement at 1800 GMT.
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FX reaction to U.S CPI and Fed, according to FX options

BUZZ-COMMENT-FX reaction to U.S CPI and Fed, according to FX options June 12 (Reuters) - FX volatility is an unknown, yet key part of an FX options premium so dealers use implied volatility as a stand-in. Any increase in implied volatility after the options expiry includes a major event will therefore reflect the additional FX volatility that dealers feel that event will generate.
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Rising volatility may trouble FX markets

BUZZ-COMMENT-Rising volatility may trouble FX markets June 12 (Reuters) - Option vols have picked up following a lengthy period of inactivity in currency markets which may leave those trading currencies badly hedged for their future movement. Unexpected moves tend to occur rapidly and can run far and the low levels of FX options vols this year imply little expectation for any movement.
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