MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

MNI China Daily Summary: Wednesday, July 24

IFO disappoints

MNI: GERMANY JUL IFO BUSINESS CLIMATE INDEX 87

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bumper NFP Helps Push FX Options Volumes to Multi-Week High

FOREX
  • The breakout payrolls report helped underpin a surge in FX hedging volumes on Friday, with close to $120bln notional crossing via the DTCC to make for the busiest single session since Jan 17 and the flurry of HKD and JPY hedges that dominated the beginning of the year.
  • EUR/USD and USD/JPY options trade were well ahead of average on Friday, with upside interest in the USD expressed via EUR/USD puts and USD/JPY calls.
  • Sizeable trade in EUR/USD puts tilted the put/call ratio to close to 1.5 in vanilla options space, with outsized demand for 1.0800, 1.0750 and 1.0650 puts tipping the scale considerably – over $6bln notional was wagered against these strikes alone.
  • As a result, the front-end of the risk reversals curve remains under pressure, with the 3m risk reversal touching new ’24 pullback lows this morning, retreating to 0.46 points in favour of puts – although still some way to go before meeting the pre-December Fed levels of ~0.65 points.
  • Topside interest in USD/JPY was evident between Y147.50-149.00 call strikes, but was also noted as high as Y155.00 post-payrolls. JPY vols continue to see support off the late Jan lows, with preference for upside hedges helping arrest the pullback in riskies.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.