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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.
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MNI China Daily Summary: Wednesday, Dec 4
EUR/USD Downside Demand Noted Despite Post-CPI Rally
- Currency hedging activity is just ahead of average for this time of day, with EUR/USD options in particular seeing decent interest. Following the US CPI print yesterday, options volumes surged, with DTCC showing over $85bln notional traded yesterday. This was the busiest session for options since August 2nd and House Speaker Pelosi's trip to Taiwan.
- Downside EUR/USD demand has been prevalent across the European morning, with 1.01 and 1.03 put strikes seeing particular interest. Close to $3 in EUR/USD puts have traded for every $2 in calls so far Thursday.
- Activity coincides with the continued pullback in hedging costs, as front-end implied vols continue to drift. The 1m contract is now below 8.5 points for the first time since early June, although may see some support into the tail-end of next week as the contract captures the Sep 21st Fed meeting.
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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.