Category: implied
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Implied odds of a Fed pause in November rise to 22% after Bostic. Euro hits two-month low
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The US dollar jumped after Atlanta Fed President Rafael Bostic signaled he was open to a pause in November if data supports it. “I’m completely comfortable skipping a meeting if the data suggests that’s appropriate,” he told The New York Times. Wall Street Journal. With this, the implied odds of…
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USD/JPY implied volatility surges to its highest since the first week of May
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Implied volatility is a component of the options pricing model. In short, the expected annual movement in an asset (USD/JPY in this case), adjusted for the expiration period. A higher IV means higher priced options (more expensive to secure “protection” via options). Volatility has increased due to the significant appreciation…