Dollar Snaps Winning Streak, Yen Gains Second Day
The dollar headed for its first daily drop in six while the yen extended gains amid fresh leveraged demand through options.
The Bloomberg Dollar Spot Index slipped by 0.1% as traders focus on US data releases later Wednesday including JOLTS job openings and factory orders.
The yen and the Swiss franc lead gains in the Group-of-10 currencies amid a global flight from risk assets.
USD/JPY down 0.5% to 144.76 before halving losses; USD/JPY one-week implied volatility heads for a fourth daily gain, up by as much as 153 basis points to 15.66%, highest since Aug. 11.
One-week USD/JPY risk reversals at 149 basis points, puts over calls, versus reading of 95 basis points yesterday.
USD/CHF drops 0.3% to 0.8482, and between 0.8475/0.8500 option strikes.
AUD/USD reverses modest losses, trades little changed at 0.6713; the Aussie inched up from the intraday low of 0.6686 after the nation's second quarter GDP print beat year-on-year median estimates.
EUR/USD up 0.2% to 1.1063 day high; large options due this week within 1.09-1.11 this week keep realized volatility under pressure.
GBP/USD +0.1% at 1.3123.
Some information comes from an FX trader familiar with the transactions who asked not to be identified because the person isn't authorized to speak publicly.
Source: Bloomberg
