Free Trial

Hedging activity broadly in line with.......>

OPTIONS
OPTIONS: Hedging activity broadly in line with average so far today, with lower
than usual volumes in USD/JPY and AUD/JPY countered by higher volumes in
USD/CNY, EUR/USD and EUR/JPY.
USD/CNY trades seemingly triggered by the pullback in USD/CNH: after printing
highs of Cnh6.9586, the rate has dropped as much as 1.3% following reports that
China and US will resume talks to soothe trade tensions. Nonetheless, today's
put/call ratio of 0.71 suggests markets still see value in hedging against
further CNY downside in the near-term. The put/call ratio falls to 0.6 when
comparing call notional and put notional so far today. A number of USD/CNY call
trades eye 7.00 strikes expiring in early November, with 6.90 the second most
popular strike price for calls so far today, according to DTCC data.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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.