CHINA PBOC CONDUCTS CNY3.5 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1027 MON VS 7.1124

MNI BRIEF: Japan Q2 Capex Up Q/Q; GDP Seen Revised Higher

MNI: PBOC Sets Yuan Parity Lower At 7.1027 Mon; +2.85% Y/Y

MNI: PBOC Net Drains CNY467.5 Bln via OMO Monday

CHINA SETS YUAN CENTRAL PARITY AT 7.1027 MON VS 7.1124

MNI: AUSTRALIA JUL BUILDING APPROVALS +10.4% M/M, +14.3% Y/Y

MNI: AUSTRALIA JUL DWELLING APPROVALS +10.4% M/M

MNI: BAKER HUGHES US RIG COUNT 583; OIL RIGS 483; GAS RIGS 95

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

UK: Week Ahead

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

OPTIONS: Options Keen to Capture USD/CHF Upside, Despite Weakness in Spot

OPTIONS
BulletForeign Exchange Bullets
  • USD/CHF seems to have found some intraday support at the 100-dma of 0.8932 today, pausing the three-day sell-off in the pair. Overnight options activity shows interest in upside exposure in an above-average volume session for CHF hedges. Trades consistent with 0.8930/0.9200 calendar call spread crossed in Asia-Pac hours, capturing the SNB's June rate decision, at which markets are evenly split over pricing another 25bps rate cut.
  • CAD vols are seeing support, with USD/CAD overnight vols rising above 8 points as the contract captures the Wednesday Bank of Canada decision. The vol premium added implies a relatively tight ~40 pip swing in the pair into the Wednesday expiry - reflecting the extent to which a rate cut is priced in tomorrow (~80% vs. ~65% before last week's GDP data). 
  • Most notable expiries for today's NY cut include: E550mln at 1.0887-90 in EUR/USD, $502mln at Y155.00 in USDJPY, A$301mln at $0.6650 in AUD/USD and E643mln at 0.8500 in EUR/GBP. 
156 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.
  • USD/CHF seems to have found some intraday support at the 100-dma of 0.8932 today, pausing the three-day sell-off in the pair. Overnight options activity shows interest in upside exposure in an above-average volume session for CHF hedges. Trades consistent with 0.8930/0.9200 calendar call spread crossed in Asia-Pac hours, capturing the SNB's June rate decision, at which markets are evenly split over pricing another 25bps rate cut.
  • CAD vols are seeing support, with USD/CAD overnight vols rising above 8 points as the contract captures the Wednesday Bank of Canada decision. The vol premium added implies a relatively tight ~40 pip swing in the pair into the Wednesday expiry - reflecting the extent to which a rate cut is priced in tomorrow (~80% vs. ~65% before last week's GDP data). 
  • Most notable expiries for today's NY cut include: E550mln at 1.0887-90 in EUR/USD, $502mln at Y155.00 in USDJPY, A$301mln at $0.6650 in AUD/USD and E643mln at 0.8500 in EUR/GBP.