Jan 25, 2012
- Mike Kentz
Japan Trade Deficit Sparks Bearish JPY Plays
Japan’s first annual trade deficit since 1980 has sparked a flurry of fx option trading taking the view the U.S. dollar will appreciate against the yen over the short- and long-term. Demand was noted through a jump in implied volatilities from Monday to Wednesday. One trader in New York said he had been asked to price over USD4 billion notional, putting through USD2 billion by noon on Wednesday.
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