MNI China Daily Summary: Monday, October 28

RPT-MNI INTERVIEW2: Trump Stagflationary For EZ-ECB's Wunsch

MNI BRIEF: PBOC Launches Outright Reverse Repo For Liquidity

MNI: PBOC Net Injects CNY32.7 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1307 Mon; +2.71% Y/Y

CHINA PBOC CONDUCTS CNY241.6 BLN VIA 7-DAY REVERSE REPOS MON

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

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

OPTIONS: FX Volumes Skewed To JPY Calls, AUD Puts

OPTIONS
BulletMarketsForeign Exchange Bullets

With yen the weakest performer in the G10 FX space (off 0.80%%), it is not surprising to see it dominating the FX option space. USD/JPY FX options accounting for about 38% of total volumes in the first part of Monday trade (per DTCC). 

  • USD/JPY sits at 153.50/55 in latest dealings, not far from session highs (153.88). A break above 154.00 will likely see late July highs at 155.22 targeted.
  • Still, the larger volume contracts have been skewed in favor of JPY. A notional +200mn call on JPY with a 145.5 strike (expiry on Nov 4) has been evident. We have also seen a number of 157.00 strike calls on JPY go through (expiry towards the end of Nov). Likewise for calls on JPY with strikes at 148.90/95 ($50mln notional).
  • In terms of other FX option volumes, we have seen some notable AUD/USD puts at 0.6465 and at 0.6300 go through for notional A$100mln). A EUR/USD put at 1.065 strike (EUR100mln) for expiry on Nov 14 has also gone through. 
169 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.

With yen the weakest performer in the G10 FX space (off 0.80%%), it is not surprising to see it dominating the FX option space. USD/JPY FX options accounting for about 38% of total volumes in the first part of Monday trade (per DTCC). 

  • USD/JPY sits at 153.50/55 in latest dealings, not far from session highs (153.88). A break above 154.00 will likely see late July highs at 155.22 targeted.
  • Still, the larger volume contracts have been skewed in favor of JPY. A notional +200mn call on JPY with a 145.5 strike (expiry on Nov 4) has been evident. We have also seen a number of 157.00 strike calls on JPY go through (expiry towards the end of Nov). Likewise for calls on JPY with strikes at 148.90/95 ($50mln notional).
  • In terms of other FX option volumes, we have seen some notable AUD/USD puts at 0.6465 and at 0.6300 go through for notional A$100mln). A EUR/USD put at 1.065 strike (EUR100mln) for expiry on Nov 14 has also gone through.