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USD/JPY Risk Reversals drop: Investors hedge against long spot positions

The Dollar-Yen staged a solid rebound from the 10-DMA support on Tuesday. The currency pair closed above its 200-DMA and rose to a high of 112.55 levels.

The rebound could be attributed to hawkish Yellen and fading North Korea tensions.

Risk reversals drop

  • One-month 25-delta risk reversals dropped to -1.325; the lowest level since September 11.
  • The decline in the risk reversals indicates rising demand for the downside bets, i.e. Put options.

Clearly, investors are seeking downside protection against long spot positions.

NZ First Party’s Peters: He’ll decide once all votes are counted after Oct 7

Reuters out with comments from New Zealand’s First Party Leader Winston Peters, noting that no one can say what they will do until they have seen all
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Trump: Any military action would be “devastating” for N. Korea - RTRS

The US President Donald Trump warned at a White House news conference late-Tuesday, any US military option would be “devastating” for North Korea, Reu
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