Snips from the latest MNI FX Options..........>

FOREX: Snips from the latest MNI FX Options Monitor, released on Friday.

- USD/CNY hedging markets were frenetic from the off this week, with Trump's

sabre-rattling and fresh tariff threats undermining market unease and prompting

a marked uptick in CNY vols across the curve. Options trading this week has been

firmly bias toward CNY downside, with $3 in USD/CNY calls bought for every $2 in

puts across the week. Volumes spiked alongside volatility, with call volume

seven times higher and put volume three times higher than the previous week. The

risk reversals curve has followed suit, with the 1m contract now sitting at the

highest level (in favour of USD/CNY calls) since February last year.

- Similar volume spikes were evident elsewhere in Asia, with USD/KRW hedging

activity surging further after an already busy prior week. As one of China's key

trading partners and being particularly sensitive to ebbs and flows of global

trade, it's no surprise to see USD/KRW average call strike price rising

alongside the spot rate and hitting the highest levels in months. KRW downside

exposure got an extra boost mid-week as North Korea upped the ante on their

weapons development programme, firing two short range missiles into the sea.