NZD/USD: Bearish bias in the options market strengthens ahead of the Fed
|- NZD/USD risk reversals show implied vol premium for NZD puts at 3.5-week high.
- Bearish bias strengthens ahead of the Fed meeting.
Kiwi's retreat from 0.7355 to 0.7210 has revived interest in the NZD puts. The one-month 25 delta risk reversals (NZD1MRR) show the implied volatility premium for NZD puts at 0.90 - the highest level since Feb. 22.
Cleary, investors are seeking downside protection on rising fears that Fed will likely revise higher its dot plot to four 2018 rate hikes at the forthcoming meeting.
NZD1MRR
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.