Despite relatively little movement in......>

CHINA FX: Despite relatively little movement in spot markets, CNY options

trading has prompting a sharp fall in 1m risk reversals, which this morning

touched their lowest since early September (and within touching distance of

August's worst levels, which were the lowest since the beginning of the year).

The moves come as markets continue to trim their expectations of a break above

Cny7.00 as hopes rise of a climbdown in trade tensions between the US and China.

USD/CNY 1m risk reversals now trades just 0.31 vol points in favour of calls,

sharply lower than the 1.12 vol points in favour of calls printed in

mid-October, when markets were rushing to place positions to profit on a break

above the Cny7.00 level.