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Noticias

FX options wrap - Risk premium, USD direction, EUR/USD targets

BUZZ-FX options wrap - Risk premium, USD direction, EUR/USD targets Overnight expiry FX option implied volatility in the higher beta USD pairings was trading its biggest pre-U.S. CPI premium this year. However, Wednesday's data was basically in line with expectations and didn't prompt the excessive volatility for which options were primed. Broader FX option implied volatility has eased as the CPI risk premium was priced out and as always, is more evident in sub-one-month expiry contracts.
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U.S. CPI warnings for FX as options trade 2024 highs

BUZZ-COMMENT-U.S. CPI warnings for FX as options trade 2024 highs Aug 14 (Reuters) - FX options for high beta currencies are trading their highest premiums for any U.S. CPI data so far in 2024, warning of the increased potential for the data to generate significant FX realised volatility. FX volatility is a key, yet unknown component of an FX option premium, so dealers use implied volatility as a stand-in.
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China Policy Watch-Beijing may pile on stimulus soon

BUZZ-COMMENT-China Policy Watch-Beijing may pile on stimulus soon Aug 14 (Reuters) - The stage is set for China to ease monetary policy further as more lacklustre economic data loom. The recent acceleration in policy tweaks points to stimulus sooner rather than later. Wednesday's normalization of the USD/CNY midpoint, revealing the smallest deviation from neutral forecasts in months, creates two-way room for the yuan.
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China's yuan eases on weakest guidance in nearly 9 months

China's yuan eases on weakest guidance in nearly 9 months SHANGHAI, Aug 13 (Reuters) - The yuan slipped against the dollar on Tuesday after the central bank set its weakest fixing in nearly nine months and as traders await U.S. inflation and Chinese economic data due later in the week. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC , around which the yuan is allowed to trade in a 2% band, at 7.1479 per dollar, its weakest since Nov.
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What is the Chinese yuan carry trade and how is it different from the yen's?

EXPLAINER-What is the Chinese yuan carry trade and how is it different from the yen's? By Winni Zhou and Summer Zhen SHANGHAI/HONG KONG, Aug 13 (Reuters) - A global markets sell-off spurred by an unwinding of yen-funded carry trades has turned the spotlight on China's yuan, which is also used widely as a cheap funding currency. While August has seen the yuan CNY=CFXS rise sharply by 2% against the dollar, traders say yuan carry trades are distinct and unlikely to unravel anytime soon.
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FX options wrap - Adjusting for calm before possible data storm

BUZZ-FX options wrap - Adjusting for calm before possible data storm There have been some significant changes in FX option premiums over recent sessions amid the strong shifts in risk appetite and unwinding of carry trades. Implied volatility spiked to new longer-term highs across the board on Monday and despite the subsequent setbacks, it remains above prior levels.
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China's yuan ticks up after faster-than-expected CPI rise, firmer fix

China's yuan ticks up after faster-than-expected CPI rise, firmer fix SHANGHAI, Aug 9 (Reuters) - China's yuan advanced slightly against the U.S. dollar on Friday, after data showed the country's consumer prices rose at a faster-than-expected rate in July, while the official fixing was also set firmer. The spot yuan CNY=CFXS opened at 7.1770 per dollar and was last trading 65 pips firmer than the previous late session close and 0.33% weaker than the midpoint.
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USD/CNH lower; PPI and CPI above forecasts

BUZZ-USD/CNH lower; PPI and CPI above forecasts USD/CNH lower after better than expected PPI and CPI data July CPI 0.5%y/y vs forecast for 0.3%; 0.5%m/m vs f/c 0.3% July PPI -0.8%y/y vs forecast for -0.9%y/y nP8N3JT0EP Pair traded 7.1786-7.1900 range so far, last at 7.1782-88 PBOC fix the mid today at 7.1449 For more click on FXBUZ (Catherine Tan is a Reuters market analyst.
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After stabilising yuan, China may be tempted to change it

BUZZ-COMMENT-After stabilising yuan, China may be tempted to change it Aug 7 (Reuters) - China's policymakers have achieved their goal with the yuan trading stably around the centre of its long-term range for almost two years. Having achieved that target, policymakers may be tempted to make the yuan fully convertible in order to gain greater influence.
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China's yuan drops on weak fix and slower pace of export growth

China's yuan drops on weak fix and slower pace of export growth SHANGHAI, Aug 7 (Reuters) - The yuan slipped against the U.S. dollar on Wednesday after official guidance was set at its weakest level in more than eight months and growth in Chinese exports for July was weaker than expected. Also putting pressure on the yuan was further strength for the U.S.
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China's yuan eases from 7-month peak, economic data in focus

China's yuan eases from 7-month peak, economic data in focus Updates prices, adds table SHANGHAI, Aug 6 (Reuters) - China's yuan eased on Tuesday from a seven-month high against the dollar it booked a day earlier, as some investors cashed in ahead of a string of economic data that is likely to affect the currency's outlook. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC , around which the yuan is allowed to trade in a 2% band, at 7.1318 per dollar a
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China's yuan eases from 7-month peak, econ data in focus

China's yuan eases from 7-month peak, econ data in focus SHANGHAI, Aug 6 (Reuters) - China's yuan eased on Tuesday from a seven-month high against the dollar and gave back most of the gains it booked a day earlier, as some investors cashed in ahead of a string of economic data that is likely to affect the currency's outlook. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC , around which the yuan is allowed to trade in a 2% band, at 7.1318 per dollar and
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Dollar down as US rate cut bets rise, yen surges

FOREX-Dollar down as US rate cut bets rise, yen surges Yen jumps to 7-month highs vs the dollar Dollar broadly weaker Carry trade unwind in focus Updates prices at 1905 GMT By Hannah Lang and Saqib Iqbal Ahmed NEW YORK, Aug 5 (Reuters) - A surge in the yen to a seven-month high led a broad dollar fall, as a slew of economic data last week raised the prospect of a U.S.
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Dollar down as US rate cut bets rise, yen surges

FOREX-Dollar down as US rate cut bets rise, yen surges Yen jumps to 7-month highs vs the dollar Dollar broadly weaker Carry trade unwind in focus Updates to U.S. open By Saqib Iqbal Ahmed NEW YORK, Aug 5 (Reuters) - T he U.S. dollar sank to a near 7-month low against a basket of peers on Monday, and sold off sharply against the euro and the Japanese yen, as a slew of economic data last week raised the prospect of a U.S.
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Japanese yen surges to 7-month high as US economy worries mount

FOREX-Japanese yen surges to 7-month high as US economy worries mount Yen jumps to 7-month highs vs the dollar Dollar broadly weaker Carry trade unwind in focus Updates throughout By Sruthi Shankar and Vidya Ranganathan SINGAPORE, Aug 5 (Reuters) - The Japanese yen surged to seven-month highs against the dollar on Monday as traders aggressively unwound carry trades after a slew of economic data last week raised the prospect of a U.S.
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Japanese yen surges to 7-month high as U.S. economy worries mount

FOREX-Japanese yen surges to 7-month high as U.S. economy worries mount Updated at 0741 GMT By Vidya Ranganathan and Sruthi Shankar SINGAPORE, Aug 5 (Reuters) - Japan's yen hit its highest levels against the dollar since January on Monday, as markets extended moves triggered last week by weak U.S. labour data that stoked recession worries and expectations of deeper rate cuts by the Federal Reserve.
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Indian rupee is worst Asian currency in U-turn as yuan carry trades unwind

CORRECTED-Indian rupee is worst Asian currency in U-turn as yuan carry trades unwind Corrects paragraph 3 to say that Malaysian ringgit rose over 2.5% in July, not over 4% By Jaspreet Kalra and Nimesh Vora MUMBAI, Aug 5 (Reuters) - The Indian rupee is now the worst-performing Asian currency -- a U-turn from being the leader in the first half of the year -- pressured by the unwinding of trades that used the Chinese yuan to fund long bets on the local currency.
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Yen rises to 7-month highs as US slowdown fears spill over

FOREX-Yen rises to 7-month highs as US slowdown fears spill over Updates at 0430 GMT By Vidya Ranganathan SINGAPORE, Aug 5 (Reuters) - Japan's yen hit its highest levels against the dollar since January on Monday, as markets extended moves triggered last week after weak U.S. labour data stoked recession worries and expectations of deeper rate cuts by the Federal Reserve.
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China's yuan leaps to 7-month high, led by stronger yen, unwinding of carry trade

China's yuan leaps to 7-month high, led by stronger yen, unwinding of carry trade Updates prices, adds analyst quotes and table SHANGHAI, Aug 5 (Reuters) - China's yuan leapt to a seven-month high against the dollar on Monday, boosted by a stronger Japanese yen and investors rushing to unwind their emerging market carry trades. The onshore yuan CNY=CFXS rallied to a high of 7.1150 per dollar in morning trades, the strongest level since Jan.
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China's yuan leaps to 7-month high, led by stronger yen, unwinding of carry trade

China's yuan leaps to 7-month high, led by stronger yen, unwinding of carry trade SHANGHAI, Aug 5 (Reuters) - China's yuan leapt to a seven-month high against the dollar on Monday, boosted by a stronger Japanese yen and investors rushing to unwind their emerging market carry trades. The onshore yuan CNY=CFXS rallied to a high of 7.1150 per dollar in morning trades, the strongest level since Jan.
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