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USDCAD TECHS

Stronger In a Range

AUDUSD TECHS

Weaker In A Range

US TSYS SUMMARY

Ending The Week On A Soft Note

EURJPY TECHS

Bearish Risk Growing

USDJPY TECHS

Stronger, But Still Vulnerable

US

SP500 PE Ratio vs. CPI Inflation

OPTIONS
OPTIONS: Implied vols across DM currencies are higher in early NY hours,
particularly in the short-end. The uptick is reflecting the modest increase in
risk aversion across the Asia-Pacific session after equities softened and the
JPY gained on fears surrounding the spread of Coronavirus beyond China's Wuhan
province.
- 1m USDJPY implied vols are ticking back above the 4.5 point mark, but are
still short of the highest levels of the year. This pattern is echoed across
Asia-Pac options markets, with KRW and CNH vols also on the front foot as
markets pick up (historically) cheap protection via options after the phase one
trade deal.
- Mimicking the uptick in vols, options volumes are also sitting higher than
recent averages for this time of day, with USD/INR, EUR/JPY and USD/KRW markets
particularly active. Downside protection in Asia FX against the greenback has
been in demand, reflected in the highest print in 1m 25d risk reversals since
early September last year this morning. 1,191.10 and 1,192.10 call strikes saw
some decent interest in early European hours.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com