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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.
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Free AccessMNI Gilt Week Ahead
Currency hedging markets remain frenetic....>
OPTIONS: Currency hedging markets remain frenetic (as was the case for much of
last week), with high levels of activity in USD/CNY, USD/JPY and USD/IDR making
up for lower volumes in EUR/USD, AUD/USD and USD/KRW.
-Implied vols are more mixed, with DMFX short-end tenors mostly declining
(notable falls seen in USD/JPY and USD/CHF 1m contracts). LatAm FX remains bid,
however, with USD/BRL and USD/MXN 1m measures both seen higher, but that's
countered by Asia-Pac vols which have generally declined following Trump's more
soothing tones late yesterday.
-Despite the bumper volumes in USD/CNY options, the put/call ratio is more
neutral after being heavily biased toward CNY puts over the past week or so,
possibly suggesting options markets have become more positive on short-term CNY
(this is also reflected in the lower CNH/CNY rate this morning).
-USD/JPY activity has also picked up, with volumes around twice the daily
average for this time of day. Volatility bets remain popular, particularly in
JPY, with one of the larger trades crossing consistent with a $500mln
106.75/111.25 1m USD/JPY strangle.
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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.