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Healthy trading in currency options.........>

OPTIONS
OPTIONS: Healthy trading in currency options markets Wednesday, with higher than
average volumes crossing in EUR/USD, USD/JPY, USD/CNY and EUR/JPY. Downside
exposure in EUR/USD in firm demand so far today, with today's put/call ratio for
vanilla options at 1.65, as per DTCC data, with the trades becoming popular
following the break lower in the spot price. This sentiment is echoed in 1m and
3m EUR/USD implied vols, both of which are well bid today.
Following MNI sources reporting that Chinese authorities may let USD/CNY slide
above 7.00 this year, USD/CNY calls have been particularly popular, with over 3
USD/CNY calls bought for every 2 puts so far today. USD/CNY call strikes at 7.00
continue the much-observed theme today, with further trades positioned to profit
on a move above Cny7.10-7.15. This follows USD/CNY touching Cny6.9475 this week,
the highest since early January 2017.

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