MNI BRIEF: Trade War To Increase Volatility Inflation -Panetta

MNI China Daily Summary: Friday, November 15

MNI BRIEF:China Optimistic On Property Despite Investment Fall

CORRECTED-MNI INTERVIEW: NBH To Hold Rates

MNI BRIEF: China Oct Retail Sales Surge On Holiday, Trade-ins

CHINA OCT INDUSTRIAL OUTPUT +5.3% Y/Y VS MEDIAN +5.5% Y/Y: NBS

US OCT RETAIL SALES $718.9B VS SEP $716.0B

MNI:US OCT RETAIL SALES +0.4%; EX-MOTOR VEH +0.1%

MNI: CANADA SEP WHOLESALE SALES -2.7%; EX-AUTOS +0.6%

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OPTIONS: CNH Recovery Theme Continues to Play Out in Options Space

OPTIONS
BulletEM BulletForeign Exchange BulletsMarkets
  • Front-end G10 FX vols remain supported above the post-election lows, with 1m EUR/USD implied capturing the next ECB decision (and the GBP/USD equivalent soon to). Thursday trade was again among the busiest of the year, with near $150bln notional crossing via the DTCC - but trade so far Friday is more contained, although CNY and SGD remains a hotspot amid quieter EUR, JPY and AUD hedging markets.
  • Tighter offshore liquidity and a sharp rise in CNH points has captured market focus this week (See: https://marketnews.com/china-surge-in-cnh-points-shows-strains-on-currency-despite-contained-spot ), compounded by signs that the PBoC are re-engaging with the counter-cyclical factor as part of the daily CNY fix.
  • USD/CNH spot has edged off yesterday's cycle highs, put remains well elevated on the week and across the post-election period. 7.2001 marks the 200-dma, the next downside level of note.
  • CNY upside has been the dominant theme overnight, with $3 in USD/CNY puts trading for every $2 in calls, and shorter-dated options in demand. Over $800mln in put notional traded between 7.18-7.19 strikes, with decent interest also noted at 7.22 and 7.11.
175 words

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.
  • Front-end G10 FX vols remain supported above the post-election lows, with 1m EUR/USD implied capturing the next ECB decision (and the GBP/USD equivalent soon to). Thursday trade was again among the busiest of the year, with near $150bln notional crossing via the DTCC - but trade so far Friday is more contained, although CNY and SGD remains a hotspot amid quieter EUR, JPY and AUD hedging markets.
  • Tighter offshore liquidity and a sharp rise in CNH points has captured market focus this week (See: https://marketnews.com/china-surge-in-cnh-points-shows-strains-on-currency-despite-contained-spot ), compounded by signs that the PBoC are re-engaging with the counter-cyclical factor as part of the daily CNY fix.
  • USD/CNH spot has edged off yesterday's cycle highs, put remains well elevated on the week and across the post-election period. 7.2001 marks the 200-dma, the next downside level of note.
  • CNY upside has been the dominant theme overnight, with $3 in USD/CNY puts trading for every $2 in calls, and shorter-dated options in demand. Over $800mln in put notional traded between 7.18-7.19 strikes, with decent interest also noted at 7.22 and 7.11.