The currency pair’s three-month implied volatility, a measure of its expected future movement over that period and which is impacted by demand for options, is hovering near its highest level since August.
France‘s no-confidence vote is emboldening currency options traders to short the euro against the yen.
Euro-yen options trading on the Depository Trust & Clearing Corporation has surged recently. Since the start of November, there have only been three trading days when the trading volume has exceeded US$3 billion ($4.03 billion), with two of these being in the last week.
