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Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
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Real-time insight of oil & gas markets
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Data
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MNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
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About Us
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Free Access###POV: MARKETS POSITIONING FOR........>
MEXICAN PESO: ###POV: MARKETS POSITIONING FOR FURTHER EM-FX FALLOUT VIA MXN PUTS
-Despite current emerging market economic woes being localised in Turkey,
options traders are clearly concerned the contagion will spread further afield.
Trades positioned to profit should EMFX sell off have taken off today, with
demand for hedges in MXN, BRL, INR and ZAR surging.
-The effect is most apparent in USD/MXN - today's options volumes are already
three times higher than average for this time of day, resulting in further
gyrations in implied vol markets: USD/MXN 1m risk reversals today touched their
highest since Trump's election in 2016 and the USD/MXN SMILE curve is now skewed
even further in favour of out of the money calls. Today's USD/MXN put/call ratio
mirrors this, with just under 2 calls bought for every put.
-Call options traded today eye strikes expiring end-August as high as Mxn
19.6750 (almost exactly in line with the 50% retracement of the June-August
sell-off). Larger trades rolling off in mid-September are geared to profit on
any move above above Mxn 19.91 in spot, a near 4% rally from the current spot
rate.
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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.