⚠️💱Yen Hedging Demand Eases, Yuan Vol At Highest Since 2020: Cable FX Macro

**As seen in Macro Walk report 10/28/22, subscribe at cablefxm.co.uk/reports

• Yen hedging demand traded softer relative to the prior week as volatility fell across tenors, the sharpest decline was seen in the 1w, down 500bps to 14.52%

• The vol premium in yen options is now relatively flat in short-term tenors as realized volatility catches up with implied, 1w realized vol in USDJPY ticked at 14.79%, the 1mo tenor last read stood at 11.90%

• Yuan hedging demand increased as the currency traded softer to the dollar, the Chinese currency is now closing the gap to 7.40. The 1w IV tenor jumped to 14.0%, this is the highest since 2020. Antipodes saw volatility rise in the 1w tenors as well