Dollar Rises as Traders Await US Data Releases
The dollar rose versus all Group-of-10 peers except the Swedish krona, and stayed in tight ranges on aggregate, as traders waited for a new set of US economic data this week.
The Bloomberg Dollar Spot Index rises as much as 0.2% before paring gains; the Bureau of Labor Statistics will release the September jobs report Thursday.
One-week volatility comes under pressure as traders went long gamma last week, focusing on post Nov. 19 expiries.
Hedging costs reflect little market concern for now over China escalating its confrontation with Japan over Prime Minister Sanae Takaichi’s comments on Taiwan.
GBP/USD is little changed at 1.3168; one-week risk reversals at 70bps, amid modest unwinds of bearish positioning.Demand for low-delta exposure stays near recent highs, and 10d flies on the one-week tenor eye four-month highs, given traders are on the lookout for any headlines on next week’s budget.
USD/JPY up 0.2% to 154.76 after Japan’s growth data showed contraction in 3Q; Japan’s economic contraction over the summer will support Prime Minister Sanae Takaichi’s case to compile an ambitious stimulus package even as the central bank stays on track for a rate hike in the coming months.
EUR/USD slips 0.2% to 1.1602; EUR/CHF down 0.1% to 0.9216 as one-week risk reversals rally to 82bps, puts over calls, the most since Oct. 28.
Source : Bloomberg.com
