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Out overnight on China FX: Barclays........>

CHINA FX
CHINA FX: Out overnight on China FX: Barclays recommend buying 3m USD/CNH call
strikes at Cnh6.85 with up-and-out RKO barrier at 7.05. The trade breaks even at
6.8644 at expiry (1.15% higher than spot).
Barclays target a move to 6.97 (below the best levels of Oct/Nov 2018 and a
comfortable distance from the knockout), implying a 1.75% return and a
reward:cost ratio (net of upfront cost) of 7.3:1.
Barclays note a risk to the trade from positive headlines/sentiment regarding
US-China trade discussions.

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