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.
FX options turnover this week has been strong, with Monday unsurprisingly proving to be the busiest session of the week in terms of volumes. GBP vols continue to trade at a premium over other pairs, with the ever-present risk of a breakdown in Brexit negotiations clearly fuelling.
In contrast, front-end EUR/USD vols hit multi-month lows this week, rivalling the lowest levels seen since the beginning of the COVID crisis. The 1m contract captured the December 10th ECB rate decision this week, but the continued pressure on implied vols (in spite of uptick in realised) indicates that markets have bought into Lagarde's signal that the ECB are unlikely to move on rates, leaning more on PEPP and TLTRO tools.
EUR/USD options trade this week has favoured upside protection, with call notional topping that of puts since the Monday open. Trades this week saw sizeable interest in 1.20 and 1.1850 call strikes, although 1.18 puts also saw decent activity.
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.