Free Trial

Currency hedging volumes still humming......>

OPTIONS
OPTIONS: Currency hedging volumes still humming along into the US morning, with
busier EUR/USD, EUR/JPY and USD/SGD hedges countering quieter USD/CNY and
GBP/USD markets. Implied vols are mixed and non-directional, but a familiar
pattern has appeared in front-end Asia-Pac vols being bought more developed
markets are subdued.
- SGD is a standout, with 3m vols re-approaching multi-month highs as spot has
persistently weakened after the central bank statement earlier this week.
Despite the weakness in spot Thursday, markets have sought exposure via USD/SGD
puts, with 1.3750 and 1.3820 strikes preferred.
- In EUR/JPY, volumes have been propped up by a considerable structure bought
mid-European morning; a E225mln Y120.00/121.50 two-week put spread. The trader
paid a EUR 2mln premium for the position. 

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.