While overnight vol in USDJPY exploded higher as it appears more than one person is drastically hedging ahead of tonight's decision, the most-sensitive of financial instruments to a possible Trump victory is rallying back to its highest since the final debate.
Carry traders are aggressively hedging a possible Trump win - buying overnight protection in USDJPY.
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As Bloomberg notes, overnight volatilities in major pairs rise to multi-week highs as U.S. election day arrives, with USD/JPY premium skewed toward puts, Bloomberg strategist Vassilis Karamanis writes.
But it seems Peso buyers are confident of a Trump loss...
