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OPTIONS: CAD and CNY Dominate FX Option Volumes

OPTIONS
BulletMarketsForeign Exchange Bullets

In the FX option space, close to 41% of transactions so far today have been in USD/CAD (per DTCC on BBG). This is not surprising given the earlier headlines around 25% tariffs on Canadian goods going to the US, once Trump returns to the Presidency. USD/CAD has broken to fresh multi year highs above 1.4100.

  • We have seen around $1.4bn in USD/CAD options, which is well above norms in terms of daily transaction in Asia Pac.  
  • In terms of some of the larger transactions, it is a mixture of CAD puts and calls, albeit with generally higher strike levels than current spot. Most rest in the 1.4200-1.4300 region, but some are higher, in the 1.4500-1.4600 region. Note in 2020 at the onset of the Covid pandemic, highs in USD/CAD were at 1.4668.
  • CNY is next with nearly $900mn in options volumes, again with strike levels mostly above current spot levels in terms of some of the larger transactions.
  • AUD/USD has seen $320mn in FX options volumes, third largest for Tuesday to date.
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In the FX option space, close to 41% of transactions so far today have been in USD/CAD (per DTCC on BBG). This is not surprising given the earlier headlines around 25% tariffs on Canadian goods going to the US, once Trump returns to the Presidency. USD/CAD has broken to fresh multi year highs above 1.4100.

  • We have seen around $1.4bn in USD/CAD options, which is well above norms in terms of daily transaction in Asia Pac.  
  • In terms of some of the larger transactions, it is a mixture of CAD puts and calls, albeit with generally higher strike levels than current spot. Most rest in the 1.4200-1.4300 region, but some are higher, in the 1.4500-1.4600 region. Note in 2020 at the onset of the Covid pandemic, highs in USD/CAD were at 1.4668.
  • CNY is next with nearly $900mn in options volumes, again with strike levels mostly above current spot levels in terms of some of the larger transactions.
  • AUD/USD has seen $320mn in FX options volumes, third largest for Tuesday to date.