Free Trial

Currency hedging volumes sitting slightly...>

OPTIONS
OPTIONS: Currency hedging volumes sitting slightly below recent averages, with
calmer EUR/USD and USD/JPY volumes outweighing busier markets in USD/HKD,
USD/KRW and AUD/JPY. Implied vols are generally falling today, with declines led
by EMFX as USD/MXN, USD/TWD and USD/TRY see the sharpest falls. USD/JPY's the
standout, with vols rising across 1- and 3-month tenors despite the pullback in
realised vol from the multi-months highs posted Monday.
-USD/HKD options markets have seen turnover over 4 times above average for this
time of day. The put/call ratio edges slightly in favour of USD/HKD puts, with
7.75, 7.7850 and 7.80 strikes in focus. Interestingly, the move higher in HKD
has failed to deter options trades eyeing a weaker HKD. Over $850mln notional
has been waged on options with strikes at 7.85 or above so far today. Volatility
bets have also been popular, with a $200mln 7.8163 one-year straddle crossing in
early European hours.
-USD/KRW options crossing today have been positioning for further KRW downside,
with USD/KRW call notional outnumbering puts by over 20%. Call strikes at 1,190
- 1,195 have proved popular.

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.