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Free AccessCurrency hedging volumes sit well ahead.....>
OPTIONS: Currency hedging volumes sit well ahead of average Monday, with better
volumes in USD/JPY, USD/HKD and EUR/USD countering lower levels of activity in
USD/CNY. Higher options volumes are mirrored in generally rising implied vols
across both DM and EMFX so far Monday, with the largest moves seen in AUD/USD
(ahead of the RBA rate decision Tuesday) and USD/CHF as the breakout in spot
drives hedging activity.
-Better USD/JPY options trading is being driven by put strikes, with well over
$2 in USD/JPY puts traded for every $1 in calls. Put strikes at Y107, Y107.50
and Y103.50 have drawn particular interest, with volatility bets also proving
popular. One of the more interesting trades crossing during Asia-Pac hours was a
$400mln Y107.65/109.00 strangle expiring in just 3 days, at Thursday's NY cut.
-USD/HKD volumes have surged with calls firmly in favour (call/put ratio sits
just under 2:1) with more pressure being placed on the HKMA's 7.85 band. Over
$500mln in 7.85 call strikes traded in early Asia/late Europe, rolling off in
one year's time.
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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.