MNI China Daily Summary: Friday, November 22

UK NOV FLASH MANUF PMI 48.6 (FCST: 50.0); OCT 49.9

EUROZONE NOV FLASH MANUF PMI 45.2 (FCST: 46.0); OCT 46.0

MNI: PBOC Net Drains CNY345.9 Bln via OMO Friday

MNI BRIEF: Fed Should Explore Central Clearing At SRF-Hammack

MNI China Daily Summary: Thursday, November 21

GERMANY NOV FLASH MANUF PMI 43.2 (FCST: 43.0); OCT 43.0

FRANCE NOV FLASH MANUF PMI 43.2 (FCST:44.5); OCT 44.5

MNI: GERMANY Q3 FINAL GDP 0.1% Q/Q (VS FCST 0.2%)

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?

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Options Point to Renewed S/T Concerns Over CNY Weakness

CNY
  • For a second session, CNY hedging volumes leading a more active FX options market. Upside protection remains in demand, with DTCC-tracked trade showing over $2 in USD/CNY calls trading for every $1 in puts. Overall volumes are also solid, with total notional traded more than double what you'd expect to see at this point in the session.
  • Call strikes at 7.05 and 7.10 have been in focus, with over $1bln notional traded at each strike across Asia-Pac/European hours. Front-end implied vols crept higher again this morning, putting 3m vols (briefly) at a new one-month high of 5.535 points. The vol curve continues to flatten on the week, providing further evidence of elevated short-term concerns now USD/CNY's north of 7.00.
  • Some of the more notable structures trading Thursday include a sizeable 7.05/7.15 call spread trading in early European hours, rolling off on July 20th. Trade breaks even on a move above ~7.0740 in spot.
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