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Free AccessDecent volumes in FX options so far.........>
OPTIONS: Decent volumes in FX options so far Wednesday, with the uptick in
Sino-US tensions and the breakout in the EUR clearly helping stimulate some
demand for options products this morning. Activity in EUR/USD and USD/CNY is
well ahead for this time of day, more than making up for quieter USD/HKD and
USD/KRW markets.
- Demand for EUR/USD upside exposure is helping fuel options turnover in the
pair, with close to $2 in calls trading for every $1 in puts so far Wednesday.
Vanilla call strikes at $1.1450, $1.160 have drawn focus, but sizeable
volatility hedges via $1.1565 and $1.1575 straddles are also helping underpin
the more active-than-average EUR/USD market today.
- Since the China consulate headlines crossed this morning, USD/CNY vanilla
calls have crossed in size, with 7.0050, 7.0100 and 7.0220 call strikes in
demand. USD/CNY risk reversals are yet to show any material response to the
consulate headlines, with 1m still just below the 0.35 points mark - broadly
inline with the July average.
To read the full story
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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.