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Stock impact report

Hedge Fund Bets Cement 152 as Level to Watch for Dollar-Yen [BNN Bloomberg (Canada)]

Nomura Holdings Inc ADR American Depositary Shares (NMR) 
US:NYSE Investor Relations: nomuraholdings.com/investor
Company Research Source: BNN Bloomberg
opens the door to intervention while option positioning threatens to accelerate declines. The significance of the level to policymakers has been on display, with warnings from Tokyo of bold action against speculative trading. Meanwhile, hedge funds are estimated to have billions of dollars in derivatives that rise in value the nearer the yen gets to 152 — but evaporate if the barrier is crossed. A selloff in the yen would then be at risk of accelerating as traders race to cover short positions that linked to the original options. “Fund managers have chosen it as a barrier for their exotic trades as they feel it will be hard for the market to rally past it,” said Ruchir Sharma, global head of FX option trading at Nomura International Plc in London. “The market would be very nervous about spot gapping higher through the barrier.” Sharma estimates there are several billions dollars of exotic options maturing in April that have barriers between 152-153. The yen traded little cha Show less Read more
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