Lates News

Morgan Stanley says the market is underestimating the risk of the US dollar weakening against the Japanese yen. The bank suggests buying options before US employment data, the potential US federal government shutdown, and the election of the leader of Japan's Liberal Democratic Party. Strategist Koichi Sugisaki wrote in a report, "Despite a number of risk events in both the US and Japan, the volatility of the dollar/yen pair does not seem to be pricing them in; we believe that one can take advantage of cheap volatility for a downside position on the dollar/yen." They recommend buying a one-month put option on the dollar/yen with a strike price of 145.00.