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OPTIONS: CNY, INR, HKD Among Hotspots of Quieter Options Trade

OPTIONS
BulletForeign Exchange Bullets
  • Currency hedging volumes are recovering after an expectedly quiet start to the week (UK and US market holidays Monday), but still remain broadly subdued. There are hotspots of activity early Wednesday, namely CNY, HKD and INR, which see volumes ahead of average for this time of day.
  • USD/CNY trade has been dominated by topside exposure, mirroring the recovery in spot and USD/CNH's break to the monthly highs. The lower PBOC CNY fix again helped open the door to further USD/CNY demand, evident in particular demand for 7.3000 call strikes, although 7.25, 7.28 and even 7.69 calls also saw decent interest. Close to $3 in calls have traded for every $2 in puts so far today.
  • Underlying USD/INR flow has also favoured upside exposure. Accompanying the strength in spot USD/INR, 82.70 and 83.50 calls make up the most notable options trade, although a series of 85.00 call strikes rolling off late June and late August add to the theme.
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  • Currency hedging volumes are recovering after an expectedly quiet start to the week (UK and US market holidays Monday), but still remain broadly subdued. There are hotspots of activity early Wednesday, namely CNY, HKD and INR, which see volumes ahead of average for this time of day.
  • USD/CNY trade has been dominated by topside exposure, mirroring the recovery in spot and USD/CNH's break to the monthly highs. The lower PBOC CNY fix again helped open the door to further USD/CNY demand, evident in particular demand for 7.3000 call strikes, although 7.25, 7.28 and even 7.69 calls also saw decent interest. Close to $3 in calls have traded for every $2 in puts so far today.
  • Underlying USD/INR flow has also favoured upside exposure. Accompanying the strength in spot USD/INR, 82.70 and 83.50 calls make up the most notable options trade, although a series of 85.00 call strikes rolling off late June and late August add to the theme.