Options Volatility Perks Up Before Earnings Wave, Rate Talks
- Yen bullish exposure follows steep rally in spot market
- Options pricing 1.1% move in S&P 500 around Fed meeting: Citi
In interest-rate markets, traders last week appeared to have added to wagers for Fed rate cuts beginning in September.
Photographer: Brendan Smialowski/AFP/Getty ImagesThis article is for subscribers only.
Volatility is back — at least a little — heading in to a week filled with central bank interest-rate decisions and quarterly earnings for some of the world’s biggest companies.
The drumbeat for a faster pace of US Federal Reserve rate cuts grew louder last week, with former New York Fed governor Bill Dudley calling for a reduction as soon as this week’s meeting or at least by September. Almost three-quarters of economists surveyed by Bloomberg News expect the Fed to signal plans to start rate cuts in September. The Bank of Japan may go in the other direction, with 90% of economists poll seeing the risk of a hike.