Volatility-Starved Yen Traders Feel Chills as Winter Comes Early
- Three-month dollar-yen implied volatility set for new 2019-low
- Immediate focus is on Bank of Japan’s Oct. 30-31 meeting
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Traders searching for potential triggers for a pickup in dollar-yen volatility may have to wait until next year.
The currency pair’s implied volatility has been slipping across the curve amid growing optimism about a partial U.S.-China trade accord. With odds of a no-deal Brexit evaporating, a gauge of the dollar-yen’s expected swings over three months has hit its lowest level since July and looks set for a new 2019-low.