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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.
CHINA
- Recent volatility and weakness in Chinese equity markets has prompted distinct weakness across the CNH and CNY, with USD/CNH rallying to touch 6.5287, the highest rate since mid-April.
- Markets are clearly conscious of the risks of further CNY weakness, with options data showing markets buying hedging products to protect against further USD/CNY strength.
- Notional wagered against USD/CNY calls this week has countered that of puts at a ratio of 3:2, with 6.53, 6.55 and - most notably 6.60 call strikes seeing significant interest from the open on Monday.
- Some of the largest structures crossing this week targeted end-September and end-October expiries, capturing near-term event risk and buoying front-end CNY vols, which recovered back above 4.00 points this week.
Figure 1: Options data shows Call interest clustered between 6.50 - 6.60.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
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.
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