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Another session of bumper USD/CNY hedging...>

OPTIONS
OPTIONS: Another session of bumper USD/CNY hedging volumes with Trump's new
tariff schedule clearly unnerving markets further. USD/CNY options volumes sit
comfortably above average, with over $10bln in contract changing hands so far
Friday. Nonetheless, implied vols across DM and EMFX so far today are generally
declining, with USD/CNY 1m vols slipping back below 6 points to partially
retrace the sharp uptick so far this week. Calmer spot markets are clearly
feeding through Friday, with EUR/USD's 20 pip range so far today dragging
short-end vols back toward 5%.
-USD/KRW upside exposure was in demand from the off for another session, with
USD/KRW call volume outnumbering that of puts by over 2 to 1, with call strikes
at 1,200 and 1,212 both particularly popular Friday. The trades come despite the
recovery in KRW spot ahead of the close, with markets eyeing supposed official
intervention in the currency rate courtesy of the central bank.

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