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From Friday's MNI FX Options Monitor: -.......>

FOREX
FOREX: From Friday's MNI FX Options Monitor:
- Poorer than expected Chinese data this week (official manufacturing, official
non-manufacturing and Caixin manufacturing PMI all missed forecast) fuelled
demand for downside protection in some of China's key trade partners. USD/KRW
and USD/TWD calls were in demand from the off (cementing a trend seen at the
tail-end of last week), with $3 in calls bought for every $2 in puts for USD/KRW
and over $3 in calls bought for every $1 in puts for USD/TWD.
- USD/KRW 1m risk reversals sit just below the post-GDP highs of 0.89 points,
but still comfortably north of the YTD average. USD/KRW call strikes at 1,185
were particularly popular this week, with near enough $1bln in calls struck to
roll off at this level. Spot hasn't traded at that level in over 2 years.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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