Options dealers are reviewing how macroeconomic events such as national elections or jobs data affect currency option pricing, as political risk rises and interest rates remain on a knife edge.
A senior options trader at a French-based international bank says: “I think events now have a much bigger weight. The exogenous impacts on the market are huge compared to three years ago.”
Options desks typically apply weights to a small number of events including non-farm payrolls releases, wage data and
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