There's been a marked move lower in.......>

HONG KONG: There's been a marked move lower in spot USD/HKD, which hit the

lowest level since late July at 7.8105. Alongside the move in the spot rate,

forward points remain elevated (1 month points now sit at 34) as most point

toward year-end funding constraints as domestic banks seek cash before

regulatory checks take place - although this theory has been called into

question given the lack of an associated move in HIBOR interbank rates. Others

are citing the HIBOR premium over LIBOR, although again this has been the case

for a few weeks - with no move this week to trigger the HKD rally today

specifically.

- In options markets, only one structure of note in USD/HKD, as trades

consistent with a $250mln 7.82/7.84 three-month call spread cross mid-European

morning.