DMFX vols trade mixed in the shorter-end,...>

OPTIONS: DMFX vols trade mixed in the shorter-end, but risk sensitive currencies

continue to see their implied measures tick higher, with spot's break to the

lowest levels since late March in USD/JPY underpinning the risk in 1m vols to

just shy of 7 points and the highest since early February.

-USD/CNY vols have been the most significant mover today. Despite relative calm

returning to USD/CNY spot, there's been a huge move in USD/CNY 1m risk

reversals. The spike today amounts to just shy of 1 vol point, putting the

contract close to the highest levels in favour of CNY puts seen since October

last year. The move in riskies was prompted by the marked uptick in implied

vols, with 1m vols now printing above 5.5 points, the highest since mid-December

last year.

-USD/CNY options volumes are running around 75% ahead of average today and, for

a second consecutive session, there's been particular interest in Cny7.00 call

strikes but Cny6.85 has also been popular.

-Elsewhere, despite failing to touch a fresh cycle high in spot, USD/KRW vols

drove higher for a fifth session and remain on track to erase the YTD decline.