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After a somewhat quiet European morning,....>

OPTIONS: After a somewhat quiet European morning, FX options volumes surged in
the wake of comments from ECB's Draghi and President Trump. The most notably
flurry of activity came in USD/CNY following Trump's confirmation that he was to
hold an 'extended meeting' with his Chinese counterpart at this weekend's G20
summit. Interestingly, USD/CNY call strikes were a popular trade despite the
sharp drop in USD/CNH spot (the sharpest fall since January 4th. USD/CNY calls
rolling off at Cny6.90 and Cny7.00 drew particular focus. One-week USD/CNY
implied vols have slipped today (although well before the Trump tweet), but will
come under increased focus when the contract captures the G20 meeting on 28/29
-AUD/USD vols remain underpinned following the RBA minutes overnight, which
nudged toward the dovish side of expectations, with the uptick in realised vol
also helping support.
-EUR/USD options markets also remain particularly busy post-Draghi, with one of
the more interesting trades including a E453mln 1.1135/1.0985 1m put spread
struck shortly after the Draghi speech.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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