Snippets from the MNI FX Options Monitor,.....>

FOREX: Snippets from the MNI FX Options Monitor, released Friday:

- With the US-China trade spat dominating risk sentiment across global asset

markets, it's not just USD/CNY spot markets that have been particularly

frenetic. USD/CNY options volumes (for hedging CNY both higher and lower) have

surged in recent weeks, but the balance of trades has been heavily biased toward

CNY puts (this is evident against both the USD and EUR this week), tilting the

ratio of USD/CNY calls over puts close to 2:1 over the past fortnight. This

sentiment is mirrored in the marked uptick in popularity of USD/CNY call options

with strikes at or above Cny 7.00, the total notional of which has reached

levels not seen throughout 2019. Despite reports suggesting the PBoC would not

tolerate a move above the handle and would use FX interventions and monetary

policy tools to combat protracted weakness, that's done little to soothe

investors who are continuing to add to positions that would profit from a break.