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USD/CNY hedging volumes are compensating....>

OPTIONS
OPTIONS: USD/CNY hedging volumes are compensating for the rest of the pairs,
with around $6bln notional changing hands so far today. No surprise as locals
return after the market holiday, catching up on the market moves over the past
week. Today also saw USD/CNY spot touch the highest since Aug15, which was the
weakest the CNY has traded since April 2017.
Hedgers looked to lock in the high USD/CNY rate and the put/call ratio remains
heavily in favour of USD/CNY calls: 76 calls bought vs. 33 puts so far today.
7.05 and 7.20 call strikes were in demand, with close to a $1bln notional
trading at those levels. USD/CNY 3m risk reversals have been well bid so far
today, touching the highest levels (in favour of USD/CNY calls) since early
February. 

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