The dollar headed for its first daily drop in six while the yen extended gains amid fresh leveraged demand through options.
The Bloomberg Dollar Spot Index slipped by 0.1% as traders focus on US data releases later Wednesday including JOLTS job openings and factory orders.
The yen and the Swiss franc lead gains in the Group-of-10 currencies amid a global flight from risk assets.
USD/JPY down 0.5% to 144.76 before halving losses; USD/JPY one-week implied volatility heads for a fourth daily gain, up by as much as 153 basis points to 15.66%, highest since Aug. 11.
One-week USD/JPY risk reversals at 149 basis points, puts over calls, versus reading of 95 basis points yesterday.
USD/CHF drops 0.3% to 0.8482, and between 0.8475/0.8500 option strikes.
AUD/USD reverses modest losses, trades little changed at 0.6713; the Aussie inched up from the intraday low of 0.6686 after the nation's second quarter GDP print beat year-on-year median estimates.
EUR/USD up 0.2% to 1.1063 day high; large options due this week within 1.09-1.11 this week keep realized volatility under pressure.
GBP/USD +0.1% at 1.3123.
Some information comes from an FX trader familiar with the transactions who asked not to be identified because the person isn't authorized to speak publicly.
Source: Bloomberg
