Yen Traders Use Options for ‘Flexibility’ Into US Inflation Data

(Bloomberg) — Yen traders are ramping up options market activity ahead of key US inflation data, turning to derivatives for flexibility amid a lack of consensus on the currency’s direction.

Dollar-yen’s one-week option implied volatility, a measure of expected price swings that directly drives up the cost of options contracts, rose for a second straight day on Wednesday, after falling in the previous five sessions.