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USD/CNY options volumes once again..........>

OPTIONS
OPTIONS: USD/CNY options volumes once again breaking higher, with hedgers
remaining incentivised by the spot rate remaining close to recent cycle highs.
This, the lack of market action last week due to holidays, and the slip in
implied vol measures continue to drive action this week, as USD/CNY total option
notional exceeds that of EUR/USD and USD/JPY comfortably.
-The put/call ratio tipped heavily in favour of calls for another session, with
over 2.5 calls bought for every put so far today. Once again, 7.00 call strikes
are heavily in demand, suggesting markets could be becoming increasingly wary of
the PBoC's ability (or willingness) to defend the implied tolerance band up to
7.00 in USD/CNY.
-USD/CNY risk reversals stick well toward the upper-end of the recent range,
with most contracts touching the most bearish on the CNY since the February
market meltdown within recent sessions.

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