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MNI's FX Options Monitor finds: Among G10...>

OPTIONS
OPTIONS: MNI's FX Options Monitor finds:
Among G10 FX, only a handful have positive realised/implied volatility ratios at
present, with AUD/USD the stand out.
The Brexit effect still looms large for GBP vols, with GBP/USD and EUR/GBP
implied volatility coming behind only BRL, MXN and ZAR vols in recent weeks.
The stakes in the Trump-Xi faceoff are clearly high: US-China reciprocal trade
flows is, by a distance, the largest in the world and options have largely
factored this into implied vol markets across most maturities. However, USD/CNY
realised vol remains acutely low. So much so that USD/CNY's realised/implied
volatility ratio is the lowest of all the currency pairs in our monitor on both
a one- and three-month horizon. This suggests that premiums continue to look
overvalued, which should continue to play into the hands of options writers in
current market conditions.
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