Free Trial

FX Options Markets Muted Pre-Powell, But Some Activity Hotspots

OPTIONS

Currency options activity sits slightly quieter than average for this time of day, with more muted trade in EUR/USD and AUD/USD options largely responsible. As is the case in futures volumes, JPY, CNY and INR markets are busier.

Front-end implied vols across G10 are a touch higher, but well within ranges ahead of Fed's Powell later today. AUDUSD 1m implied is recovering a little after touching a one-month low overnight.

USD/JPY downside protection has been in demand this morning, with $4 in puts trading for every $3 in calls. Y104, Y105 and Y105.50 put strikes have drawn the most attention, although there has also been demand for call strikes layered between Y106.50-55.

In INR, markets have sought USD/INR downside exposure, with 72.50, 73.00 and 73.75 puts.

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.