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Another bumper session for USD/CNY.........>

CHINA FX
CHINA FX: Another bumper session for USD/CNY options volumes, with hedging
activity running over 20% higher than average for this time of day. Four month
highs in the USD/CNY rate have helped drive the firm demand for USD/CNY call
exposure Thursday, and risk reversals have followed suit. The 1m contract now
sits at the highest level (in favour of USD/CNY calls) since February last year.
The 1m contract has seen the firmest recovery over the past month, but marked
gains are also noted further out on the curve, with 1y risk reversals also
surging.
-USD/CNY call volume outnumbers that of puts by almost 2 to 1 so far today and
once again (as has been the case over the past few days) markets have been
adding to Cny7.00 call strike positions, with that level drawing further
interest today.
-Volatility bets have also been popular, with one of the largest trades crossing
today appearing to be a $500mln Cny6.545/6.955 strangle expiring on 30th July.

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