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Saxo Traders: USDJPY spot creeps higher ahead of FOMC
Saxo Traders think markets are "cleary changing focus" to the next FOMC meeting on 18 December. Gustav Rieunier says he has seen some interest to sell options that expire prior to this meeting, but even more so for options expiring afterwards.
Last week, data showed the US unemployment rate fell to a five-year low of 7 per cent. It followed a series of improving economic indicators, and increased the possibility the Federal Reserve would trim its USD 85-billion-a-month bond-buying programme as soon as this month.
Gustav has also seen dollar yen spot creeping higher since Friday. For the last few weeks there has been a lot of interest to buy downside options, despite that move up.
Meanwhile, Sergej Rybalko says there are a few movements to point out from the Asian session; firstly a small stop run in dollar yen on the opening – but those short term spots have since been cleared.
He also explains the Aussie and the Kiwi have been squeezed to the upside on the opening. He is waiting for the retail sales in Australia – out Thursday - and the cash rate in New Zeeland - out on Wednesday.
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01:22 minutes
Tags: asian markets, aud, aussie, dollar, dollar index, dollar yen, downside options, federal reserve, financial markets, fiscal stimulus, fomc, fomc 18 december, forex, fx, fx options, global economy, gustav rieunier, investing, investment, kiwi, recovery, saxo bank, saxo traders, sergej rybalko, stimulus, trader, trading, trading fx, us economy, us jobs data, us unemployment, usd jpy, usdjpy