CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA SEP CPI +1.6% YOY VS FORECAST +1.8%, PRIOR +2%

MNI China Daily Summary: Tuesday, October 15

MNI CBRT WATCH: Policy To Hold As Monthly Inflation Ticks Up

MNI BRIEF: Iron Ore Prices Have Potential To Increase

MNI: PBOC Net Injects CNY26.2 Bln via OMO Tuesday

MNI: US REDBOOK: OCT STORE SALES +5.6% V YR AGO MO

MNI: CANADA AUG WHOLESALE SALES -1.8%; EX-AUTOS -0.4%

MNI: CANADA SEP CPI INFLATION -0.4% M/M, +1.6% YY

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

OPTIONS: Hedging Turnover Picks Up After Monday's Partial Close

OPTIONS
BulletMarketsForeign Exchange Bullets
  • With US markets only partially open Monday, options turnover was considerably below average yesterday, clocking the lowest total notional since Sept 16th - however markets are busier so far Tuesday thanks to decent interest in EUR, SGD, HKD and CHF hedges.
  • Upside USD/HKD hedges have traded in size, with over $2 in USD/HKD calls trading for every $1 in puts so far Tuesday. 7.75 and 7.85 strikes have seen the most interest, potentially positioned to gain from onshore HKD weakness, or a near-term uptick in implied vols.
  • One-month USD vols remain well elevated as the contracts capture the early November US elections, with EUR/USD vols looking comfortable either side of 7.5 points, although USD/JPY vols have faded off last week's 14 points. Meanwhile the front-end of the EUR vol curve has seen scant interest despite the looming ECB decision, suggesting that a well-telegraphed 25bps cut this week would prompt little market volatility.
  • More sizeable expiries set to roll off at today's cut include €1.1bln in EUR/USD at $1.0850-75, $1.4bln in USD/JPY at Y149.70-90, A$1.2bln in AUD/USD at $0.6675 & A$3.5bln at $0.6775-00.
179 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 US markets only partially open Monday, options turnover was considerably below average yesterday, clocking the lowest total notional since Sept 16th - however markets are busier so far Tuesday thanks to decent interest in EUR, SGD, HKD and CHF hedges.
  • Upside USD/HKD hedges have traded in size, with over $2 in USD/HKD calls trading for every $1 in puts so far Tuesday. 7.75 and 7.85 strikes have seen the most interest, potentially positioned to gain from onshore HKD weakness, or a near-term uptick in implied vols.
  • One-month USD vols remain well elevated as the contracts capture the early November US elections, with EUR/USD vols looking comfortable either side of 7.5 points, although USD/JPY vols have faded off last week's 14 points. Meanwhile the front-end of the EUR vol curve has seen scant interest despite the looming ECB decision, suggesting that a well-telegraphed 25bps cut this week would prompt little market volatility.
  • More sizeable expiries set to roll off at today's cut include €1.1bln in EUR/USD at $1.0850-75, $1.4bln in USD/JPY at Y149.70-90, A$1.2bln in AUD/USD at $0.6675 & A$3.5bln at $0.6775-00.