What to expect this week
I have put some relatively detailed thoughts together on the event risk I am focused in the week ahead, which will be dominated by the UK election and managing exposures ahead of the 15 December tariffs deadline. The FOMC and ECB meeting and US CPI would usually be huge event risks, but this time around they take a backseat.
For those, who just want to see the implied vols and moves, and not my dulcet tones on a Friday afternoon, here is the data. I do explain the chart in more depth in the video if you are lost on how to interpret.
USDJPY looking 'expensive'?
I wanted to leave off on this chart below, which looks at USDJPY (red) vs the US-Japan 2-year bond yield spread. Granted, correlations come and go but these jaws need closing and USDJPY seems to be 'expensive' against one of its key drivers over the years.
(Source: Bloomberg)
