MNI BRIEF: Fed's Bostic Says Bumpy Inflation Calls For Caution

CANADA NOV TRADE BALANCE -CAD323 MLN VS PRIOR -CAD544 MLN

MNI BRIEF: NGEU Potential Growth Lift Less Than Expected -ECB

MNI China Daily Summary: Tuesday, January 7

MNI China Press Digest Jan 7: CPI, New Loans, Local Bonds

MNI: PBOC Net Drains CNY150.6 Bln via OMO Tuesday

EZ/UK Bond Supply Calendar: IT Syndication; UK, DE Due Wed

EZ/UK Bond Supply Calendar: IT Syndication; UK, DE Due Wed

EZ/UK T-Bill Calendar: 3/6/12-Month EU-Bills Auction Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OPTIONS: FX Hedging Volumes Surge Despite More Muted Spot

OPTIONS
BulletMarketsForeign Exchange Bullets

Despite the calmer spot currency markets this morning, the FX hedging market is once again very busy - with recent breakouts in USD/CNY, EUR/USD and GBP/USD clearly helping drive demand for derivatives.

  • USD/CNY options volumes are over double the average for this time of day, with markets showing particular interest in 7.33 and 7.45 calls - however call strikes as high as 7.5500 - 7.5525 are also seeing solid interest, even with a tight three-month expiry.
  • We noted earlier today the solid interest in EUR/USD puts with strikes at or below parity - and that's extending into the NY crossover today over €2bln notional traded for structures that gain on a break below parity (this tally is up to €4.5bln since the start of the year) and will be a key driver on the spike in options-implied odds for the pair to break 1.00 before the end of Q1.
147 words

To read the full story

Close

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.

Despite the calmer spot currency markets this morning, the FX hedging market is once again very busy - with recent breakouts in USD/CNY, EUR/USD and GBP/USD clearly helping drive demand for derivatives.

  • USD/CNY options volumes are over double the average for this time of day, with markets showing particular interest in 7.33 and 7.45 calls - however call strikes as high as 7.5500 - 7.5525 are also seeing solid interest, even with a tight three-month expiry.
  • We noted earlier today the solid interest in EUR/USD puts with strikes at or below parity - and that's extending into the NY crossover today over €2bln notional traded for structures that gain on a break below parity (this tally is up to €4.5bln since the start of the year) and will be a key driver on the spike in options-implied odds for the pair to break 1.00 before the end of Q1.