Via Bloomberg… slightly paraphrased for clarity, otherwise verbatim:
- There’s demand for EUR/CHF 1-month options before the November 30 referendum on Swiss National Bank’s gold reserves and the December 11 policy meeting of SNB, according to an FX sales trader in Tokyo familiar with options market
- Demand seen for EUR call/CHF put options as well as for EUR put/CHF call options
- EUR/CHF 1-month implied volatility climbs 7 bps to 4.1675%
- Spot EUR/CHF little changed at 1.2031 after touching 1.2022 yesterday, lowest since Sept. 2012
- NOTE: Switzerland will vote on Nov. 30 on initiative that would require SNB to hold at least 20% of assets in gold and forbid sale of any such holdings and require all gold to be held in country
(I posted on the referendum … here: Will there be a buyer of 1700 tons of gold after November?)
