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China's yuan steady with markets focused on the Bank of Japan

China's yuan steady with markets focused on the Bank of Japan SHANGHAI, March 19 (Reuters) - China's yuan held steady against the U.S. dollar on Tuesday, with market attention diverted by the Bank of Japan's historic decision to end negative rates and an upcoming Federal Reserve policy decision. The Bank of Japan's decision marks a landmark shift away from its huge stimulus programme and represents Japan's first interest rate hike since 2007. BOJ Governor Kazuo Ueda is expected to hold a news co
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Another China property-boosting LPR cut would surprise

BUZZ-COMMENT-Another China property-boosting LPR cut would surprise March 19 (Reuters) - China will set its loan prime rates, which affect consumer borrowing costs, on Wednesday. Since the one-year LPR will most likely be maintained , eyes will be on the mortgage-related five-year interest rate. Data released Monday showed positive industrial performance , but the real estate sector is still reeling and unemployment rose .
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China yuan eases amid caution ahead of global c.bank meetings

China yuan eases amid caution ahead of global c.bank meetings SHANGHAI, March 18 (Reuters) - China's yuan inched lower against the dollar on Monday, as investors were cautious ahead of a busy week of overseas central bank monetary policy meetings that could lead to some volatility in currency markets. The Bank of Japan is seemingly on the brink of ending negative rates on Tuesday, while the market is also focused on the Federal Reserve's rate outlook due on Wednesday.
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China's yuan holds steady as PBOC leaves key rate unchanged

China's yuan holds steady as PBOC leaves key rate unchanged SHANGHAI, March 15 (Reuters) - The yuan held steady against the U.S. dollar on Friday after China's central bank left a key policy rate unchanged, preventing the yield gap from widening further As expected, the People's Bank of China (PBOC) said it was keeping the rate on the one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.50% from the previous operation.
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FX options wrap - Extreme low implied volatility speaks volumes

BUZZ-FX options wrap - Extreme low implied volatility speaks volumes FX option implied volatility gauges FX realised volatility risk and is a key parameter of an option premium - it's trading at long term lows. Benchmark 1-month expiry EUR/USD implied volatility trades at its lowest levels since November 2021 at 5.0, while 1-month expiry GBP/USD implied volatility hits a 10-year low at 5.5. Very low overnight expiry implied volatility premiums proved justified in their predictions of a limited F
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Data and Central Banks may fail to spark FX Volatility

BUZZ-COMMENT-Data and Central Banks may fail to spark FX Volatility March 14 (Reuters) - Option premiums suggest that upcoming U.S. economic data and central bank policy announcements may not significantly revive FX market volatility. Implied volatility, a crucial predictor replacing the unknown real-time FX volatility in option pricing, offers a trading edge when it diverges from actual market volatility.
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China's yuan inches lower, markets await US data and PBOC rate decision

China's yuan inches lower, markets await US data and PBOC rate decision SHANGHAI, March 14 (Reuters) - China's yuan inched lower against the dollar on Thursday, with investors anxiously awaiting fresh U.S. economic data for guidance on the monetary policy trajectory in the world's largest economy and an interest rate decision in China. Tuesday's hotter-than-expected U.S.
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FX options wrap - FX volatility crisis, BoJ action risk shift

BUZZ-FX options wrap - FX volatility crisis, BoJ action risk shift March 13 (Reuters) - Tuesday's U.S. CPI data was close enough to expectations to limit subsequent FX volatility and prompt a further reduction in FX option implied volatility. All currencies and expiry dates came under pressure, with sub 3-month expiry G10 FX option implied volatility posting the biggest losses to ever new 2-year lows .
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AUD/USD may be set for big gains but needs a catalyst

BUZZ-COMMENT-AUD/USD may be set for big gains but needs a catalyst March 13 (Reuters) - AUD/USD rallied Wednesday and held above the 55-DMA and daily cloud base, ignoring typically bearish influences as investors may be expecting big gains are still to come. The pair rallied despite fading hopes for Fed rate cuts after February CPI, rising U.S. yields US2YT=RR , US10YT=RR , falling iron-ore DCIOc2 prices and USD/CNH rallying to a 3-session high.
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Option prices signal FX volatility crisis

BUZZ-COMMENT-Option prices signal FX volatility crisis March 13 (Reuters) - A broad FX option implied volatility plunge to ever new 2-year lows signals a potential crisis for those who rely on FX volatility to generate returns. FX volatility is an unknown yet key determinant of an FX option premium. Any disparity between implied and realised FX volatility creates a trading opportunity.
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China's yuan weakens as sticky US inflation weighs on rate cut hopes

China's yuan weakens as sticky US inflation weighs on rate cut hopes By Summer Zhen HONG KONG, March 13 (Reuters) - China's yuan softened against the U.S. dollar on Wednesday as traders pared back U.S. rate cut expectations after sticky inflation data overnight. The dollar held firm as a second straight month of stronger-than-expected inflation effectively shut the door on the possibility of a Federal Reserve interest-rate cut before June, and made back-to-back reductions after that look increas
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China's yuan rises to 1-1/2 month high on dovish Fed bets

China's yuan rises to 1-1/2 month high on dovish Fed bets SHANGHAI, March 12 (Reuters) - The yuan rose to a 1-1/2-month high against a broadly weaker dollar on Tuesday, which was pulled down by U.S. rate cut expectations, while persistently stronger daily central bank guidance continued to shore up the Chinese currency. Recent declines in the dollar follow rising bets the Federal Reserve could begin cutting rates by June, which gained momentum last week after dovish comments from Fed Chair Jerom
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China's yuan steady after CPI rises but deflation pressure remains

China's yuan steady after CPI rises but deflation pressure remains SHANGHAI, March 11 (Reuters) - China's yuan held steady against the U.S. dollar on Monday after stronger-than-expected Chinese inflation data, with investors still wary about deflationary pressure and looking for further stimulus measures from Beijing. Consumer prices rose in February for the first time in six months and exceeded economists' forecast, official data showed on Saturday, lifted by spending linked to the Lunar New Ye
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FX options wrap - JPY pairs lead volatility and USD put demand

BUZZ-FX options wrap - JPY pairs lead volatility and USD put demand March 8 (Reuters) - FX option implied volatility rose from 2-year lows this week, with a mild preference to own USD put over call strikes and the biggest gains posted in JPY related pairings amid increased expectations of BoJ policy action on March 19. The NFP data wasn't strong enough to significantly impact a U.S.
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NFP preview and expected FX reaction

BUZZ-COMMENT-NFP preview and expected FX reaction March 8 (Reuters) - Friday's U.S. jobs data is the next big test for the U.S. dollar, with related FX option pricing and positioning offering clues as to the expected reaction. The dollar's recent downturn, following Fed Chair Powell's testimony, underscores the Fed's commitment to rate reductions if inflation continues to decelerate .
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Yuan holds steady, US payrolls and China inflation in focus

Yuan holds steady, US payrolls and China inflation in focus SHANGHAI, March 8 (Reuters) - China's yuan held steady against a weakening U.S. dollar, as U.S. yields slipped after Federal Reserve Chair Jerome Powell's comments reinforced market expectations for rate cuts. Powell said on Thursday the U.S. central bank was "not far" from gaining the confidence it needs in falling inflation to begin cutting interest rates.
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No light at the end of the tunnel for China's yuan

BUZZ-COMMENT-No light at the end of the tunnel for China's yuan March 8 (Reuters) - Traders are struggling to see positives for the yuan, despite forecast-beating Chinese trade data. The lingering negativity stems from frustration at persistently prudent policymaking , and growing fear of further anti-competitive U.S. measures . Although Chinese exports jumped 7.1% annually in the Jan-Feb period, well above expectations for a 1.9% rise, stocks fell and the yuan weakened on concern that less poli
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FX options wrap - Value, NFP bets, JPY surge, central bank risk

BUZZ-FX options wrap - Value, NFP bets, JPY surge, central bank risk March 7 (Reuters) - Sub 3-month expiry FX option implied volatility has been lifted from very long-term lows as traders seek value before some major event risks. Friday's U.S. NFP data has increased the cost of overnight expiry options and there've been a few more bets for volatility in the direction of a weaker dollar than the risk of another strong jobs number that would boost USD.
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FX reaction to Friday's US NFP, according to FX options

BUZZ-COMMENT-FX reaction to Friday's US NFP, according to FX options March 7 (Reuters) - Overnight FX options now expire at 10 a.m. New York cut on Friday and therefore include the U.S. non-farm payrolls data, with related implied volatility gains and subsequent premiums offering clues as to the perceived FX reaction. Volatility is an unknown yet key parameter of an option premium, so dealers use implied volatility (their best guess) as a stand in.
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China's yuan steadies as dollar slips, but pressure remains

China's yuan steadies as dollar slips, but pressure remains SHANGHAI, March 7 (Reuters) - China's yuan was largely steady against the U.S. dollar on Thursday, as the dollar slipped after comments from the U.S. Federal Reserve Chair reinforced market expectations for rate cuts. The dollar index .DXY eased in overnight trade and hovered near a one-month low as traders zeroed in on the idea that U.S.
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