Hedge funds added to bullish options wagers on the Chinese yuan versus the dollar as weak US jobs data signaled potential trouble for the American economy.
The premium to speculate that the offshore yuan will rise against the dollar over the next three months, compared to it falling, is sitting around its highest levels since August 2024. That signaled that fast-money market participants are looking to ramp up bets on a weaker greenback.
The volume of options bets that the yuan will strengthen, particularly around a three-month time frame, has been significant “as fast-money clients look to re-engage with dollar ...
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