Free Trial

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

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
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



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.