FX volatilities fall on receding US election fears
Polls point to a decisive Biden win – though some worry market is being complacent
Options volatilities for major US dollar currency pairs have declined steadily since September amid receding fears of a contested presidential election – though some see the low readings as a sign of complacency ahead of a major risk event.
The shift in sentiment was reflected in two-month options on the safe-haven yen. These were trading at more than nine volatility points on September 21, up from 7.192 at the start of the month, but have since retraced most of that ground.
“After the
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